Shop Talk

Root beer, roast beef, fish & chips: Who’s buying?

There’s a new batch of quick-service restaurants on the block – Arby’s, A&W and Long John Silver’s – and according to YouGov BrandIndex, A&W is the most popular of the three.

A&W, founded in 1919 and known for its root beer, had the trio’s highest satisfaction rates, said YouGov BrandIndex, which does daily consumer perception research on brands. 

A&W and Arby’s had higher satisfaction scores than an average of about two dozen fast-food chains, while Long John Silver’s fared worse. (See graphic below)

“A&W and Arby’s have a core group of supporters and satisfied customers,” said Ted Marzilli, global managing director for YouGov BrandIndex. “If I’m a buyer, that’s a strength.”

Marzilli predicted that all three brands would find buyers, although prices and other terms likely would differ.

He said A&W and Arby’s could be reinvigorated by buyers who focused on their strengths, while Long John Silver’s is more of a turnaround story.

Another big question is whether any of the chains will snag a valuation as rich as the one attached to Burger King’s $3.3 billion sale to 3G Capital last year.  The $24 per share sale price represented a 46 percent premium to Burger King’s price before news of the negotiations emerged.

When love just isn’t enough…

Whether it’s mergers or marriages, sometimes love just isn’t enough. 

That may be what people at the National Retail Federation and the Retail Industry Leaders Association are feeling today after the two groups said they ended merger talks.

“RILA and NRF have ended discussions aimed at merging the two organizations. NRF and RILA will devote all resources to continuing the work they are each doing to address the serious issues that America’s consumers and retailers are facing in today’s economic environment,” the two boards of directors said in a joint statement.

At first it seemed so good — like a merger made in (retail trade group) heaven.  And they spoke so fondly of one another, too.

“The challenges and opportunities before our members are unprecedented. Now is the right time to bring these associations together,” said RILA Chairman, Robert Niblock, CEO of Lowe’s Cos, and NRF Chairman Mike Ullman, CEO of J.C. Penney, in a joint statement when they announced talks over the merger in April.

Though merger talks have broken down, the two organizations will continue to work toward very similar goals of lobbying for the Organized Retail Crime Act and the E-Fencing Enforcement Act, and against the the Employee Free Choice Act.