Originally Posted by
Pete
I've mentioned this before but...
When I was a management consultant in L.A., I worked on a proposed merger between Arby's and LJS.
This was in the 90's and was one of the first passes in the industry at co-branding. The idea being that LJS did strong dinner business and Arby's was more of a lunch spot, so there would be synergy.
At the time, Arby's was owned by a hedge fund out of New York but was based in Fort Lauderdale. LJS was privately owned and their HQ was in Lexington, KY.
Talk about culture clash! All the LJS stores were company owned and nearly all the Arby's were franchises. LJS had an entire campus in Lexington complete with their own hotel and training facilities. They developed all their own systems in-house, including a proprietary point of sale system, had a large test kitchen and employee restaurant where you could try all their new products. They were desperately trying to gain traction with grilled items but that never really took hold.
Arby's HQ was little more than a couple of floors in an mid-rise office building.
Because both concepts required large, bulky equipment (meat slicers and deep-fryers) they had a hard time designing efficient retrofits for the 4,000+ combined locations.
In the end, Arby's backed out (they were the buyer) due to the insurmountable differences.
It was absolutely fascinating, although I was flying between California, Florida and Kentucky for months.
LJS ultimately went into bankrupcy, was bought by A&W which then sold to YUM and they are now based in Lousiville. About 5-6 years ago, YUM sold off both A&W and LJS, the latter to a group of franchisees.
They've really had difficulties for the last 30 years.
Not long after that deal fell apart, I had another asignment to out-source 1,000+ IT workers at K-Mart in suburban Detroit. That was another very interesting experience but traveling from SoCal to Troy, Michigan in the dead of winter pretty much drove me out of the consulting business.
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