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Arby's Considers Selling Products in Supermarkets

The fast-food chain previously licensed its sauces for retail locations.
June 16, 2010

ATLANTA - Struggling to increase sales at restaurants, Arby��s is turning its eyes on licensing branded items for grocery shelves as a way to improve its bottom line, Nation��s Restaurant News reports. The fast-food chain, which operates 3,700 units, revealed it has signed an agreement with licensing firm Nancy Bailey & Associates Inc., to start looking at offers to sell Arby��s products in supermarkets.

Arby��s spokeswoman Kathy Seifert verified that the restaurant would be considering products in retail locations but no specifics were offered. Arby��s previously had its sauces licensed for sale at retail.

Increasingly, restaurants are leveraging their brands in retail markets, which creates additional revenue to counter falling restaurant sales, said Bill Cross, a vice president at Broad Street Licensing Group. Restaurants entering the retail environment or adding to their product line include Burger King, California Pizza Kitchen, Jamba Juice, P.F. Chang��s, Starbucks and T.G.I. Friday��s.

Arby��s has faced declining sales recently, registering an 11.5 percent drop in same-store sales for the first quarter of 2010, according to parent company Arby��s/Wendy��s Group. Last month, the group appointed Hala Moddelmog as the roast-beef chain��s new CEO, asking her to turn the chain around.