Arby’s Restaurant Group Inc. has reported strong sales in the U.S. in recent years. Now it wants to see the same strength overseas.
The Atlanta-based sandwich chain revealed Tuesday an international franchise development agreement for 25 locations in Kuwait and Saudi Arabia, marking the chain’s first international push since 2010.
International development is a logical strategy for Arby’s. Yet CEO Paul Brown told Nation’s Restaurant News that the chain is in no hurry to expand, promising a “very slow, deliberate approach.”
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“We’re starting to rebuild the brand internationally,” Brown said. “But we’re looking for the right markets and the right franchisees.”
Arby’s is a predominantly domestic brand, with the vast majority of its 3,300 locations in the U.S. — although it has some success in Turkey, where it has 50 locations, as well as Canada.
International development would be a potentially fruitful endeavor for a chain like Arby’s, which sells a variety of sandwiches that could be easily tailored to fit local tastes. After all, just about every culture has its own sandwiches.
“There’s a lot of interest,” Brown said. “But we’re in no rush.”
Brown said the biggest immediate growth opportunity is domestic, where Arby’s is also restarting unit growth amid an ongoing, five-year, same-store sales growth streak.
The chain opened 69 units worldwide last year, and announced agreements for 138 locations in the first quarter of this year. Unit growth is a key element in the chain’s plans to get its systemwide sales past the $4 billion mark by the end of 2018.
The Kuwait-Saudi Arabia agreement is with Al-Kharafi Global, for General Trading & Contracting Company-WLL, or Kharafi Global. The operator will open 25 new Arby’s restaurants in Kuwait and Saudi Arabia over the next seven years.
Contact Jonathan Maze at [email protected]
Follow him on Twitter: @jonathanmaze
