Arby's Heads to Chopping Block
Wendy's/Arby's Group, Inc., the third-largest quick-service restaurant
company in the United States, today is exploring strategic alternatives for
Arby's Restaurant Group, Inc., including a sale of the brand. UBS Investment
Bank is assisting in the process.
Arby's is the second-largest quick-service sandwich
chain in the U.S. with nearly 3,700 restaurants. Arby's restaurants specialize
in slow roasted and freshly sliced roast beef sandwiches as well as Market Fresh
deli-style sandwiches, toasted subs and salads.
Nelson Peltz, chairman of Wendy's/Arby's Group,
said, "We believe the way to maximize shareholder value is to focus all of our
management and financial resources on continuing to build the Wendy's brand.
Arby's is a good business, and we are making progress improving its performance,
as evidenced by the 3.1% increase in company-operated same-store sales in the
fourth quarter of 2010. However, despite Arby's positive momentum, the reality
is that the Wendy's brand, given its relative size and scope, is the key driver
of shareholder return, and we believe we should focus on the execution of the
compelling growth opportunities at Wendy's."
Roland Smith, president and chief executive officer
of Wendy's/Arby's Group, said, "Wendy's currently has more than 6,500
restaurants in more than 20 countries and is one of the most attractive growth
stories in the quick-service restaurant industry. A pure-play Wendy's will
enable us to focus all of our energies on growing the Wendy's brand via new
store growth both in North America and international markets, and with
accelerated same-store sales through the introduction of new dayparts and core
menu innovation."
The company is planning to issue a news release
after the market closes on January 26, 2011, with preliminary financial
highlights for the 2010 fourth quarter and full-year. At that time, the company
also plans to provide a 2011 outlook. Wendy's/Arby's Group plans to issue more
detailed fourth quarter and full-year 2010 financial results, as well as its
2010 Form 10-K, on March 3, 2011.
Starbucks to Guests: "Will You be Paying by Cash, Credit or Smartphone?"
Starbucks’ U.S. company-operated stores now allow customers to pay for
in-store purchases with select smartphones. The program builds upon the earlier
introduction of the Starbucks Card Mobile App for select BlackBerry smartphones,
the iPhone and the iPod touch, and a successful mobile payment test program.
This national program now includes nearly 6,800 company-operated stores and more
than 1,000 Starbucks in U.S. Target locations.
In addition to engaging a loyal base of several million cardholders with the
offering, Starbucks anticipates mobile payment will be a draw for customers
looking to experience the speed, ease and convenience of paying with their
mobile phone. “Today, one in five Starbucks transactions is made using a
Starbucks Card and mobile payment will extend the way our customers experience
and use their Starbucks Card,” says Brady Brewer, vice president Starbucks Card
and Brand Loyalty. “With mobile payment, the Starbucks Card platform further
elevates the customer experience by delivering convenience, rewarding loyalty
and continuing to build an emotional connection with our customers.”
To experience mobile payment at Starbucks, customers just need to download the
free Starbucks Card Mobile App for select BlackBerry smartphones, iPhone or iPod
touch mobile devices. More than one-third of U.S. Starbucks customers use
smartphones, of which nearly three quarters use BlackBerry smartphone or iPhone
mobile devices. In addition to the mobile payment capability, the app allows
customers to manage their Starbucks Card account, check their card balance,
reload their card with any major credit card (iPhone users can also use the
PayPal feature), check their My Starbucks Rewards status and find a nearby
Starbucks store with the store locator feature.
Building upon test market success
Customers can pay with their smartphone by holding their mobile device in front
of a scanner on the countertop and scan the Starbucks Card Mobile App’s
on-screen barcode to make a purchase. Customers have successfully adopted this
technology in test markets in Seattle, Northern California, New York and more
than 1,000 Starbucks in U.S. Target stores.
Mobile payment is built on the Starbucks Card platform, which continues to
experience significant customer adoption. Customers loaded more than $1.5
billion on Starbucks Cards in 2010, an increase of 21 percent over 2009, driven
in part by the My Starbucks Rewards program which provides benefits to customers
who pay with a registered Starbucks Card at participating stores. With the
introduction of the quick and easy Starbucks Card Mobile App and the mobile
payment feature, customer will find yet another reason to use their Starbucks
Card for payment.
“Mobile payment is just one example of how we’re continually innovating on
behalf of our customers to enhance the Starbucks Experience,” says Brewer. “A
growing segment of our customers use smartphones, and through the Starbucks Card
Mobile App, we’re providing them with the fastest way to pay.”
A Wake-up Call for Travel Suppliers? Study Charts Potential of
Third-Party Sales
A new industry study, “
Cross-Sell
Your Way to Profit,” charts the untapped revenue potential of third-party
ancillary services to the travel industry, with analysis providing a wake-up
call to travel suppliers as it identifies growth of 30% in revenues from
third-party sales by 2015. The study, conducted by
Forrester Consulting, identifies the growth of
new ‘extreme’ services, such as virtual reality tours and digital concierges,
set to transform the customer experience in the next ten years; highlights what
travel providers must do to effectively market new services; and outlines the
central role of mobile in driving adoption of new services in the next five
years.
The study was developed by Forrester Consulting, an independent research firm,
and commissioned by
Amadeus, a leading travel technology partner and
transaction processor for the global travel and tourism industry.
The study states that: “Third-party ancillary services provide travel suppliers
with an underexplored revenue-generating opportunity, expected to increase by
30% by 2015 compared to 2010. There is growing recognition that third-party
ancillary services will become important revenue contributors to travel
suppliers, provided they offer a relevant product mix and make these services
available throughout a journey and across channels. Third-party ancillary
services offer the potential for travel suppliers to extend the length and
breadth of traveler interactions before, during and after a trip.”
The study is based on quantitative research, with 67% of respondents drawn from
travel brands that generate annual revenues in excess of $1 billion. In
addition, the study includes qualitative input from industry experts across
airlines, hotels, rail and cruise operators that details the scale of the
revenue opportunity, the future third-party ancillary services set to drive
sales and the shifting mix of channels required to effectively sell third-party
ancillary services according to customer needs.
Key findings:
- Third-party ancillary revenue to grow 10 times faster than general sales in
next five years: Third-party
ancillary revenue is expected to increase by 30% during the period 2010 to 2015.
Set against estimated travel industry growth of 3% during this period, analysis
demonstrates third-party revenue growth is 10 times greater than that of general
sales. The study finds third-party revenue is likely to represent 2.5% of total
provider income by 2015 - or $25 million for a $1 billion company.
- ‘Extreme’ ancillary services set to transform the passenger experience,
allowing providers to innovate in the next 10 years: While traditional third-party
services such as insurance, car rental and hotel room sales are expected to
remain popular, travel providers see great potential in a range of ‘extreme’, as
yet unexploited, products and services. By 2020, more than half of travel
providers (54%) expect to offer virtual reality services that can help
passengers experience airports, hotels and cruise ships before arrival, digital
concierges to improve the in-hotel or airport experience (80%) and in-journey
spa treatments (37%). Travel providers expect future services to be shaped by a
combination of macro-trends, with mobile having the greatest impact (81% believe
it very important) and the rise in travel to and from emerging economies is also
viewed as important (59% believe it either important or very important).
- Mobile to match websites as primary channel for third-party sales: Although respondents recognize the
limitations of mobile’s effectiveness to sell third-party services today,
ranking it behind traditional channels such as airline ticket offices and hotel
front desks, they expect a dramatic increase in importance over the next five
years. Driven by the increasing penetration of smartphones and tablet devices,
as well as the industry’s desire to develop more flexible selling capabilities,
travel providers believe mobile will be a very close second to websites in terms
of effectiveness to sell third-party services by 2015. Increasingly, mobile will
be a primary channel for the sale of third-party services beyond the booking
stage.
Respondents also highlight social media and self-service kiosks as increasingly
important channels to reach customers with third-party offers.
