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Dunkin’s Luther Becomes Arby’s Chair

An Arby's sandwich being eaten, 2011 commercial
A 2011 Arby's commercial of a sandwich being eaten

ATLANTA — Jon Luther, chairman of Dunkin' Brands, has been appointed as the chairman of the board for the troubled Arby's chain.

Hala Moddelmog, president of Arby's Restaurant Group, Inc., introduced the franchising firm's new board of directors to its franchisees during the chain's national franchise conference in Atlanta. The new board of new ARG Holding Corporation consists of five members and will be led by Chairman Jon Luther.

Luther stepped down as Dunkin's CEO but continued on as chairman of the two brand system, Dunkin' Donuts and Baskin Robbins. It was a position he held since 2006. As the company eyed an initial public offering, Luther became non-executive chairman with fewer responsibilities in July, 2010.

"The Arby's brand is filled with potential and opportunity," says the Luther, who is also currently the 1st vice-chairman of the International Franchise Association.

Jim Coen, president of the Dunkin' Donuts Independent Franchise Owners, says from the franchisees' perspective: "Jon Luther may be just what Arby's needs. He will certainly shake things up, and hopefully wake things up. I don't know too much about the Arby's franchisee association, but I would strongly urge the franchisees to get themselves properly organized. It will be very important for them to take an active role."

Former International Franchise Association chair Sid Feltenstein also joins the Arby's board. Feltenstein is also a former Burger King franchisee. In 1995 Feltenstein led a private equity investment group that acquired A&W Restaurants. In 1999 Feltenstein led A&W's purchase of Long John Silver's. A press release from Arby's says that Feltenstein quickly grew A&W from 450 to almost 1,000 units in five years. Feltenstein sold both franchising firms to YUM! Brands in 2002. A&W franchisees announced in September that they acquired the troubled franchising company from Yum Brands through their independent franchisee association.

Three of the board members are executives with private investment firm Roark Capital Group that overlooks restaurant franchising conglomerate Focus Brands.

The ARG Holding Corporation Board of Directors consists of:

  • Neal Aronson, Founder and Managing Partner, Roark Capital Group
  • Sid Feltenstein, Former CEO, Yorkshire Global Restaurants
  • Jon Luther, Non-Executive Chairman of the Board of Directors, Dunkin' Brands
  • Erik Morris, Managing Director, Roark Capital Group
  • Steve Romaniello, Managing Director, Roark Capital Group
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