On Wednesday, Tulsa-based company United States Beef Corporation (US Beef) announced the sale of all their 368 Arby's Restaurants.
"It was never our exit strategy to sell US Beef. However, about a year ago, John Davis, our CEO and myself started hearing from investors who were looking to expand their portfolios. For us, if we were going to do it, it would have to be a true restaurateur who had a similar family culture to ours. We had worked with the Cypress Group in a few of our previous acquisitions and they helped us identify the Flynn Restaurant Group, the largest restaurant franchisee group in the United States as an ideal suitor. FRG expressed the desire to continue to grow the brand and take care of our people like we have these past 50 years. The brand was strong, our people are the best in the industry. And it just felt like now was the right time."
- Jeff Davis, Chairman, U.S. Beef
The fast-food chain will be acquired by RB American Group, which is a wholly-owned subsidiary of Flynn Restaurant Group.
“We are extremely pleased to announce the addition of these Arby’s locations to our portfolio of restaurants,” said Greg Flynn, Founder, Chairman and Chief Executive Officer of Flynn Restaurant Group in a statement. “The Davis family and their team of great operators built a fantastic business over 50 years and we’re privileged to be the ones to shepherd the US Beef restaurants into their next phase. In addition, standing in a category of its own, the Arby’s brand aligns perfectly with our preference for brands that are truly differentiated and ‘best in breed’ in their segments. Benefiting from very strong leadership, the Arby’s brand has achieved great momentum these past few years and we are truly excited about the opportunities that lie ahead.”
Flynn also owns and operates Applebee's, Panera Bread and Taco Bell franchises.
Davis said the impact of the local workforce will be minimal.
"Over the next six months during the transition, we'll be losing approximately 25 percent of our support office, which is less than 40 employees," Davis said. "But we're working very hard with local recruiters and other companies to place those employees as soon as we can. This acquisition has absolutely no impact on our operations and the wonderful employees who operate our restaurants."
Arby's was founded in 1964 and opened its doors in Tulsa in 1969 by restaurateur Bob Davis.
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