Arby's^® Origin Story: The Brothers Behind the Beef

By Robert W. • Jun 27, 2024

Arby's^®, the second-largest fast-food sandwich chain in America after Subway^®, has a rich history often overshadowed by bigger names like McDonald's^® and KFC^®. But how did Arby's get to where it is today? The story begins with two brothers, Leroy and Forrest Raffel, whose vision and perseverance turned a novel idea into a fast-food giant.

The Raffel Brothers

Forrest "Fuzzy" Raffel, born on May 14, 1922, and his younger brother Leroy, born on March 13, 1927, both served in the military during World War II. After the war, Forrest graduated from Cornell University's School of Hotel and Restaurant Administration, while Leroy earned a degree from the Wharton School of Finance at the University of Pennsylvania. In the 1950s, the brothers purchased their uncle's restaurant equipment business, creating Raffel Brothers, Inc., a leading food service consulting firm. They noticed the rapid growth of fast-food chains like McDonald's and believed there was a market for quick-service restaurants that didn't focus on hamburgers. Instead, they envisioned a restaurant specializing in roast beef sandwiches.

Launching Arby's

On July 23, 1964, the Raffel brothers opened the first Arby's in Boardman, Ohio. Originally, they wanted to name it "Big Tex," but the name was already taken. They settled on "Arby's," derived from the initials "R.B." for Raffel Brothers. Their roast beef sandwiches were priced at 69 cents, significantly higher than McDonald's 15-cent hamburgers. Despite the higher price, the concept was a hit, and by the late 1960s, Arby's had expanded to more than 300 locations across nearly 40 states.

Arby's Origin Story: The Brothers Behind the Beef-2 Arby's medium roast beef sandwich with curly fries. Photo by Lenin and McCarthy.

Financial Struggles

Rapid expansion required significant capital, leading the brothers to seek an IPO in 1970. However, delays and market issues forced them to abandon the IPO, leaving them without the necessary funds. This financial strain led to a Chapter 11 bankruptcy filing in late 1970. Despite these challenges, the Raffel brothers managed to regain control and restore profitability. By the end of 1975, they had grown Arby's to 500 locations.

The Comeback

In 1976, the brothers sold Arby's to RC^® Cola for $18 million. Under RC Cola, they continued to expand, reaching over 800 locations by the end of 1979. The Raffel brothers retired from the food service industry as multi-millionaires. Arby's has gone through various management changes and was even partially owned by Wendy's^® at one point. Today, it is franchised through The Arby's Restaurant Group and is part of Inspire Brands, the second-largest restaurant company in the U.S. Arby's boasts nearly $4 billion in total revenue and more than 3,400 locations. The iconic roast beef sandwich remains a household favorite, continuing the legacy of the Raffel brothers.

Arby's Origin Story: The Brothers Behind the Beef-3 Arby's restaurant in Colonial Heights, Virginia. This is the largest Arby's restaurant in the chain. Photo by Aaron F. Stone.

The story of the Raffel brothers is one of vision, tenacity, and the ability to bounce back from setbacks. They believed in their idea and persevered through financial struggles, ultimately creating one of the most successful fast-food chains in America. Their journey is a testament to the power of entrepreneurship and resilience.

References: The Inspirational Story of the Brothers Who Created Arby's | The Real Story Behind Arby's Name