Arby’s SWOT Analysis
Arby’s is a leading fast food restaurant chain in United States and Canada. The Arby’s main key target market is more adult-oriented. It owns a total of about 3,688 restaurant outlets in the United States and Canada such that 1,106 are corporate-owned while remaining are ran by 462 franchises.
The Arby’s diverse menus give customers a long catalogue of different options like roast beef sandwiches, submarine sandwiches, curly fries, pasta, appetizers, salads etc. Moreover the elegant interior design, expansive furniture, spacious seating and fabulous ceilings of the Arby’s restaurants differentiate them from all the other fast food industry brands.
Around 500 Arby outlets have been built on Pinnacle Design with cathedral ceilings and structural elements as a part of the interior. The upscale Arby’s restaurants adds value to its competitive edge over the hamburger food chains.
In 1991, Arby’s recognition strengthen grew for being the first fast food restaurants to offer a complete light menu. It offered meals with as low as below three hundred calories and about ninety four percent fat free. Arby’s has been distinguished from the rest of its competitors because it doesn’t use any additives in its chicken products. It uses healthy chicken which is water, salt and phosphate free. The announcement of removal of trans-fat items from menu in 2006 added to its healthful approach.
The Arby’s adut-focused strategy differentiates it from other fast food chain brands; its enhanced menus, marketing, merchandising and trainings in this regard are highly distinctive.
The company suffered from substantial operating losses during the fiscal year 2008. it recorded operating losses of $417.3 during 2008 as compared to the operating profits in 2007. It recorded a net loss of $479.7 million during the same year.
The Arby’s issued a disappointing 2010 earning growth forecast as compared to the one by the Wall Street Journal. Arby’s shares value recently dropped by 1.6%.
There exists extensive growth opportunities for Arby’s to gain market capitalization by continuing its past trend of forming acquisitions and mergers. Currently it is the third largest fast food restaurants in the United States; it can step to number one by acquiring more companies.
The raw material supply is another major threat. Shortage of any food can affect the whole industry as the potato famine in Ireland cut short the potato supply.
The unnatural farming of food products through genetically modified procedures raises the issues of morality, ethics and health simultaneously. Recently the formulation of laws and regulations in this regard pose a major warning to Arby’s like other fast food chain. Any carelessness can lead to filing of case against it according to law.