Rax Roast Beef Explained

Trade Name:Rax Roast Beef
Type:Private
Former Names:JAX Roast Beef (1967–69; 1972–77)
RIX Roast Beef (1969–72)
Foundation: in Springfield, Ohio[1]
Founder:Jack Roschman
Location City:Ironton, Ohio, U.S.[2]
Key People:Jason Donahue (CEO)
Industry:Fast food
Products:Roast beef sandwiches, salad bar, shakes, baked potatoes, fries, soft drinks, wraps, sandwiches, chicken
Owner:Rich Donohue
From Rax to Rich's Inc.

Rax Roast Beef is a regional U.S. fast food restaurant chain specializing in roast beef sandwiches. The company has been through many iterations, declaring bankruptcy more than once, rising to as many as 504 locations in 38 U.S. states in the 1980s and falling to fewer than 20 locations on more than one occasion. As of 2024, Rax is based in Ironton, Ohio, and has only six franchisee-owned restaurants still in operation in three states.

History

Origins

Rax was originally known as "JAX Roast Beef", founded by Jack Roschman in 1967, in Springfield, Ohio.[1] In 1969, Roschman sold the chain to General Foods, which then changed the name of the restaurants to "RIX Roast Beef". General Foods ran the chain until 1972, when most of the restaurants closed down. The remaining 10 units were franchised units owned by the Restaurant Administration Corporation (RAC), headed by J. Patrick Ross, a franchisee of multiple restaurant chains including Wendy's, Ponderosa Steak House, and Long John Silver's.

RAC purchased the remainder of RIX from General Foods, and returned the JAX name to the restaurants. RAC eventually decided to focus on the roast beef business, and began franchising the chain. The JAX restaurants were renamed Rax in 1977 to be more suitable for trademarking and franchising, with the first Rax-branded franchise restaurant opening in Columbus, Ohio. RAC was renamed Rax Systems Inc., then again to Rax Restaurants Inc. in 1982.[3] By then, Rax had grown to over 221 restaurants in 25 states.[4]

In 1981, the chain introduced baked potatoes and salad bars to its menu. By June 1984, the 300th location had opened, in Fort Wayne, Indiana.[5] In 1988, the company decided to reduce the size of its money-losing salad and food bars to help reduce expenses and refocus on sandwiches.[6]

Peak

At its peak in the 1980s, the Rax chain had grown to 504 locations in 38 states along with an unknown number of restaurants in Guatemala.[7]

1990s and bankruptcy

During the late 1980s, Rax began a series of almost continuous changes to its business model, diversifying its staple roast beef sandwich sales into a more eclectic menu. At various times Rax promoted baked potatoes, pizza, a dinner bar with pasta, Asian-themed food, a taco bar, an "endless" salad bar, and a dessert bar.[8] Rax also began to transform its restaurants from typical fast food restaurant architecture into designs containing wood elements and solaria, with the intention of becoming the "champagne of fast food". This transformation drove away its core working-class customers, obscured its staple sandwich business causing profits to plunge while other chains, such as Wendy's, took advantage of Rax's ideas and improved on them.[4]

Compounding Rax's decline was a management buyout of the company in 1991 and numerous changes that occurred on the company board.[9] The company attempted to convert under-performing outlets by forming joint ventures with Miami Subs and Red Burrito[10] [11] as they scaled back many of its stand-alone locations to its core markets, particularly in Ohio, Pennsylvania, and West Virginia.[12]

By August 1992, the chain had faded into obscurity.[13] That same month, a new advertising campaign was formulated with Deutsch Inc. to create a new animated promotion named "Mr. Delicious", a sportcoat-wearing, briefcase-toting, bespectacled, middle-aged man who constantly overshared his personal life while expressing gratitude for Rax restaurants. The campaign was ostensibly intended to attract adult customers to a 'value' menu.[14] [15] Despite the company's efforts to portray the Mr. D. campaign as successful, customers failed to respond. Three months after the arrival of Mr. Delicious, Rax Restaurants Inc. filed for bankruptcy.[13]

Post 1992 bankruptcy

In 1994, Rax Restaurants Inc. merged with North Carolina-based Franchise Enterprises Inc, renaming the company Heartland Food Systems Inc., and becoming a Hardee's franchisee.[16] Heartland planned to convert all Rax restaurants into Hardee's by 1997.[17] However, by 1996, the difficulty of converting Rax restaurants to Hardee's placed too much pressure on Heartland, and they were forced to once again file for Chapter 11 bankruptcy. As part of a turnaround plan, the company sold the Hardee's units it owned that were not originally Rax stores and changed the company's name back to Rax Restaurants Inc.[18]

By 1996, the chain had dropped to 150 franchises, with 450 locations.[7]

The company was planning a revival for the Rax concept, including a new, simpler menu, a new store prototype, and a new logo and color scheme.[18] However, in November 1996, Wendy's International made an offer to purchase 37 Rax restaurants, intending to convert most of them to Tim Hortons.[19] This caused a change in strategy, and a buyer was sought for the remaining company-owned restaurants.[20] In July 1997, the Rax brand was purchased by Cassady & Associates.[21]

By December 2005, the brand was owned by Carpediem Management Co., with 51 locations, of which 11 were company-owned and 40 were franchisee-owned.[22] As other fast food chains added kids' meals, Rax created its mascot, Uncle Alligator, who featured in all the kids' meals and toys, always involving some sport or activity (e.g. skateboarding).[23] In 2006, 26 locations remained in Illinois, Indiana, Kentucky, Ohio, Pennsylvania, Virginia, and West Virginia.[24] In December 2007, Rich Donohue, a five-year franchise owner with a restaurant in Ironton, Ohio,[25] purchased the Rax trademark.[26] The new company, From Rax to Rich's Inc., purchased the name to bypass licensing costs, and had plans to open more restaurants in Ohio and Kentucky.

The last Rax in Indiana closed in 2011.[27] By February 2015, 15 locations remained in Illinois, Kentucky, and Ohio, and West Virginia.[28] The last Rax in West Virginia closed in 2016[29] and the number of locations declined to eight by March 2016.[30] Most of the remaining Rax locations are franchisee-owned, with the right to use the Rax name as long as the store is in operation.

A new Rax location opened in New Carlisle, Ohio in 2022.[31] As of May 2024, the company operates 6 locations: 1 in Illinois, 1 in Kentucky, and 4 in Ohio.[32] [33] Because of a YouTube video, it is possible Rax is rebounding slowly.[34]

Slogans

Notes and References

  1. Web site: Rax hunts for a president; Ross says move is 'logical' next step for growth . Nation's Restaurant News . Levine . D.M. . January 14, 1985 . July 6, 2014 . dead . https://web.archive.org/web/20140714155619/http://business.highbeam.com/409700/article-1G1-3602600/rax-hunts-president-ross-says-move-logical-next-step . July 14, 2014.
  2. Web site: Contact . Rax Roast Beef . From Rax to Rich's Inc. . . .
  3. Web site: The Evolution of Great Taste . Rax Restaurants . Carpediem Management Co. . . . dead . https://web.archive.org/web/20060103185320/http://www.rax-online.com/History.htm . 2006-01-03.
  4. Book: Fast Food: Roadside Restaurants in the Automobile Age . Jakle . John A. . Suclle . Keith A. . amp . 173 . 1999 . 9780801869204 . JHU Press .
  5. News: 300th Rax opens here: A notch up on scale . . June 19, 1984 . Probber . Jonathan . subscription . Today was opening day for Fort Wayne-based Rax of Indiana's 22nd restaurant, at 5909 Covington Road. It's the third in this area, and the 300th for the franchisor, Rax Systems of Columbus, Ohio... The first salad bar in a fast service restaurant, according to fast food historians, and baked, topped potatoes, introduced in February 1981. Besides the salad bar (a large, horseshoe-shaped unit) and roast beef, Rax stores sell ham, turkey, fish, barbecued beef, and Philadelphia-style beef sandwiches. They also sell potato skins and soup..
  6. News: Rax Will Trim Its Salad Bars, Shareholders Told at Meeting . . November 23, 1988 . 01F . Amatos . Christopher A. . subscription . The regional restaurant chain will put more emphasis back on sandwiches and trim its salad bar offerings after discovering that its Lunch Bar and Dinner Bar are failing to bring in new business, President Larry Ritter told shareholders at the company's annual meeting yesterday. Ritter said new surveys show Rax lost some market share during the summer. More importantly, six of eight major chains that offer expanded salad bars also lost share, indicating consumers no longer see extensive salad bars as unique or innovative, Ritter said... Rax was one of the first chains in the country to offer salad bars with hot pasta and Mexican items. Its salad bar accounted for as much as 40 percent of sales in some stores, Ritter said..
  7. Web site: Franchising in Guatemala . De Urrutia . Raguel . . March 29, 2000 . Government of Canada . November 21, 2007 . dead . https://web.archive.org/web/20080307144418/http://strategis.ic.gc.ca/epic/site/imr-ri3.nsf/fr/gr102544f.html . 2008-03-07.
  8. News: Editorial: Rax Bids Downtown Farewell After 28 Years . . April 27, 2011 . . February 27, 2012.
  9. Web site: Rax Tries to Rally . Bernstien . Charles . Restaurants & Institutions . February 1992 . July 6, 2014 . dead . https://web.archive.org/web/20140714221816/http://www.highbeam.com/doc/1G1-12109989.html . 2014-07-14.
  10. Web site: Rax, Red Burrito Ink Deal to Expand Mexican Fast Feeder . Carlino . Bill . Nation's Restaurant News . May 25, 1992 . July 6, 2014 . dead . https://web.archive.org/web/20130211095550/http://business.highbeam.com/409700/article-1G1-12270575/rax-red-burrito-ink-deal-expand-mexican-fast-feeder . February 11, 2013.
  11. News: Red Burrito Venture Lets Rax Widen Scope . . May 14, 1992 . 01D . Amatos . Christopher A. . subscription . Rax Restaurants Inc. became a partner yesterday with Carlos Garcia in his Red Burrito Mexican food company, with plans to convert some underperforming Rax locations to the new concept. Rax directors approved the agreement yesterday, said William Underhill, president and chief operating officer of the Dublin-based chain. Rax will provide marketing, purchasing and management support as well as locations. Garcia, who earlier this year opened the first Red Burrito in a converted Rax that he is leasing, will manage the company..
  12. News: Miami Subs Planning For Growth Chain Converting Older Buildings, Signs Rax Deal . Kolody . Tracy . . December 16, 1991 . January 10, 2024.
  13. Web site: The Reason This Fast Food Chain Was A Huge Failure . Schwartz, Ralph . Mashed . March 5, 2021 . April 21, 2021 . live . https://web.archive.org/web/20210421154333/https://www.mashed.com/348385/the-reason-this-fast-food-chain-was-a-huge-failure/ . April 21, 2021.
  14. News: THE MEDIA BUSINESS: ADVERTISING -- ADDENDA; New Campaigns . Elliot . Stuart . . August 24, 1992 . February 25, 2012.
  15. Mr. Delicious Promotional Video . August 14, 2011 . . February 25, 2012 . live . https://ghostarchive.org/varchive/youtube/20211221/BmGbEfU35Qg . 2021-12-21.
  16. Web site: Alliance with Rax boosts Hardee's to 4,112 units - Rax Restaurants Inc., Hardee's Food Systems Inc . Howard . Theresa . Nation's Restaurant News . May 2, 1994 . July 6, 2014 . dead . https://web.archive.org/web/20140714215944/http://business.highbeam.com/409700/article-1G1-15189735/alliance-rax-boosts-hardee-4112-units . July 14, 2014.
  17. Web site: Heartland Food Systems to shed Rax Restaurants . Carlino . Bill . Nation's Restaurant News . March 6, 1995 . July 6, 2014 . dead . https://web.archive.org/web/20140714200108/http://business.highbeam.com/409700/article-1G1-16647351/heartland-food-systems-shed-rax-restaurants . July 14, 2014.
  18. Web site: Heartland Food returns to Rax roots - Heartland Food Systems Inc. repositions Rax Restaurants concept . Kapner . Suzanne . Nation's Restaurant News . February 12, 1996 . July 6, 2014 . dead . https://web.archive.org/web/20140714173040/http://business.highbeam.com/409700/article-1G1-17995939/heartland-food-returns-rax-roots . July 14, 2014.
  19. News: Rax to Sell 37 Restaurants to Wendy's . . October 25, 1996 . https://web.archive.org/web/20220809073358/https://apnews.com/article/56848601f3b11e5dce9645e57e22d060 . 2022-08-09 . dead.
  20. News: Rax Name Appears Likely To Survive Transformation . Gebolys . Debbie . . November 6, 1996 . September 1, 2006 . dead . https://web.archive.org/web/20070926222048/http://libpub.dispatch.com/cgi-bin/documentv1?DBLIST=cd96&DOCNUM=25380 . 2007-09-26.
  21. News: Cassady seeks investors for Dalt's, Rax expansion . Ball . Brian R. . . August 22, 1997 . January 26, 2007 . https://web.archive.org/web/20080305015404/https://www.bizjournals.com/columbus/stories/1997/08/25/story5.html . 2008-03-05 . live.
  22. Web site: Rax Restaurant Locations . 2005-12-30 . rax-online.com . Carpediem Management Co. . 2022-08-11 . dead . https://web.archive.org/web/20051230125116/http://www.rax-online.com/raxlocations.htm . 2005-12-30.
  23. Web site: Kids Pages . Rax Restaurants . Carpediem Management Co. . . . dead . https://web.archive.org/web/20051230123237/http://www.rax-online.com/Kids/KidsPages.htm . 2005-12-30.
  24. Web site: Restaurant Locations . Rax Restaurants . Carpediem Management Co. . . . dead . https://web.archive.org/web/20060511062525/http://www.rax-online.com/raxlocations.htm . 2006-05-11.
  25. News: Donohue buys Rax trademark . . February 14, 2008 . . https://web.archive.org/web/20160625141046/https://www.irontontribune.com/2008/02/14/donohue-buys-rax-trademark/ . 2016-06-25 . live.
  26. News: Can Rax finally make a comeback? . . March 16, 2009 . . subscription . https://web.archive.org/web/20090412205556/http://www.bizjournals.com/columbus/stories/2009/03/16/story4.html . 2009-04-12 . live.
  27. News: Downtown Rax closing . . April 15, 2011 . Doyle . Abbey . https://web.archive.org/web/20231117094114/https://www.heraldbulletin.com/news/local_news/downtown-rax-closing/article_aa025862-a580-5743-8c1e-1d095f15d561.html . 2023-11-17 . live.
  28. Web site: Locations . Rax Roast Beef . From Rax to Rich's Inc. . . . dead . https://web.archive.org/web/20150217202223/http://raxroastbeef.com/locations.html . 2015-02-17.
  29. News: Former Rax closes: Owner cites loss of revenue, rising costs . . February 16, 2016 . Bevins . Evan . https://web.archive.org/web/20240523070147/https://www.newsandsentinel.com/news/local-news/2016/02/former-rax-closes/ . 2024-05-23 . live.
  30. Web site: Locations . Rax Roast Beef . From Rax to Rich's Inc. . . . dead . https://web.archive.org/web/20160329013920/http://raxroastbeef.com/locations.html . 2016-03-29.
  31. Web site: Rax’s return to Clark County a step in rebirth of roast beef chain . 2024-06-11 . springfield-news-sun . English.
  32. Web site: Newman . Jeremy . September 4, 2022 . Only a Handful of Rax Restaurants are Still Open Most of them are in Southern Ohio . May 13, 2024 . Scioto Post.
  33. http://www.raxroastbeef.com/locations.html
  34. https://www.allrecipes.com/rax-roast-beef-forgotten-chain-pilgrimage-site-8635230
  35. News: Rax Restaurants plans more new items despite diversity of its extensive menu . Edwards . Joe . December 3, 1984 . . July 6, 2014 . dead . https://archive.today/20140709095427/http://business.highbeam.com/409700/article-1G1-3549316/rax-restaurants-plans-more-new-items-despite-diversity . 2014-07-09 . Rax Restaurants' ads use the phrase "All the Right Stuff".
  36. News: Step aside King Kong: Rax has brought a new ape to town . Alva . Marilyn . . February 1, 1988 . July 6, 2014 . dead . https://archive.today/20140709095420/http://business.highbeam.com/409700/article-1G1-6342171/step-aside-king-kong-rax-has-brought-new-ape-town . 2014-07-09 . the 540-unit Columbus, Ohio-based chain with the advertising slogan "Fast Food with Style.".
  37. Web site: Rax Roast Beef I'd Rather Rax, Wouldn't You? . raxroastbeef.com . From Rax to Rich's Inc. . 2010-10-14 . 2022-08-11 . dead . https://web.archive.org/web/20101014190806/http://raxroastbeef.com/ . 2010-10-14.
  38. News: Full-size Favorites 99¢ Value Menu . Latrobe Bulletin . 1992-08-26 . 33 . . . 2022-08-11 . You can eat here. (tag line on each coupon).

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