Dive Brief:
- David Graves has joined Arby’s as brand president, parent company Inspire Brands said Monday in a press release. He succeeds Rita Patel, who was brand president from April 2023 to September 2024.
- Jeff Baker, who was Arby’s vice president of brand advertising and content from 2014 to 2018, rejoined the brand as chief marketing officer. He has worked at Inspire for 11 years.
- Graves joined Inspire from Yum Brands, where he worked as president of Pizza Hut U.S. for about two and a half years, according to his LinkedIn profile. He also held various leadership positions at KFC and helped transform both of the brands’ U.S businesses.
Dive Insight:
Graves’ ability to transform brands could prove useful to Arby’s. Arby’s Franchise Disclosure Document for 2024 indicates the brand has had some trouble driving sales growth and unit growth in recent years. Its U.S. average unit volume in 2022 was $1.35 million, growing to $1.37 million in 2023 — a modest increase of 1.2% that did not keep pace with overall inflation. Comparatively, its AUV grew 7% from $1.2 million in 2019 to $1.3 million in 2020.
“[Graves] has a reputation for quickly impacting sales and transforming brands over time,” Scott Murphy, Inspire’s chief brand officer,said in the press release. “He is a servant leader with a focus on growing people and delivering exceptional guest experiences.”
At the same time, the brand closed a net two units in 2023, leaving it with 3,413 stores in the U.S. at the start of 2024. While two units is a negligible decrease for a brand of Arby’s size, the stagnation of its unit count in 2022 and 2023 could signal broader difficulties for the brand and its operators.
Earlier this year, Miracle Restaurant Group, a 25-unit franchisee of Arby’s, filed for Chapter 11 bankruptcy. Miracle cited declining same-store sales, inflation and difficulty offloading underperforming units as factors contributing to its liquidity problems.
Baker rejoined Arby’s from Buffalo Wild Wings, where he helped lead the brand’s culinary and beverage strategy as vice president of category management. Baker’s familiarity with Arby’s identity could strengthen its marketing.
Arby’s has tried to boost sales through value offerings, advertising a double meat promotion for $7 earlier this month. Its other marketing efforts this year have largely focused on value, like its free sandwich month promotion in April, or on specific menu items. In July, Arby’s brought back its potato cakes; the month before, Arby’s highlighted its burger offerings.
