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.

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