Rax (restaurant)

Infobox_Company
name = Rax

type = Private
genre =
foundation = 1962 in Wheeling, West Virginia
founder = J. Patrick Ross
location_city = Ironton, Ohio [http://www.irontontribune.com/articles/2008/02/14/news/local03.txt "Donohue buys Rax trademark"] by Mark Shaffer, "The Ironton Tribune", February 14, 2008, retrieved February 18, 2008]
location_country =
location =
locations = 14 [http://rax-raxroastbeef.com/Location.html Location] Rax Restaurant Locations, rax-raxroastbeef.com, retrieved August 4, 2008]
area_served = Ohio, Kentucky, West Virginia, Indiana, Illinois, and Pennsylvania
key_people =
industry = Fast Food
products = Roast beef sandwiches, salad bar, shakes, baked potatoes, and other fast food products
services =
revenue =
operating_income =
net_income =
owner = Rich Donohue
num_employees =
parent = From Rax to Rich's
divisions =
subsid =
slogan = "Gotta get back to Rax" [http://web.archive.org/web/20060511062625/www.rax-online.com/History.htm Rax Restaurants' History] , "rax-online.com"]
homepage = www.rax-raxroastbeef.com
footnotes =
intl =

Rax is a small regional U.S. fast food restaurant chain specializing in roast beef sandwiches, currently based in Ironton, Ohio. Once a big player in the fast food segment, Rax has extensively scaled down their operations since their peak in the 1980s due to poor marketing decisions and internal corporate problems within the company. Its closest rival in terms of menu offerings is Arby's.

History and operations

Rax was founded as the Restaurant Administration Corporation (RAC) by J. Patrick Ross in 1962 with a single Burger Chef in Wheeling, West Virginia. The company grew by franchising other restaurants like Wendy's, Ponderosa Steak House, Long John Silver's, and their own concept, JAX Roast Beef; the first location of which was located in Springfield, Ohio. [http://web.archive.org/web/20060103185320/www.rax-online.com/History.htm The Evolution of Great Taste] , History of Rax on rax-online.com (archive)]

The modern Rax began in the 1970s. In 1969 General Foods purchased the JAX concept and renamed the restaurants to RIX, but eventually spun-off the restaurants back to RAC, reverting back to the JAX name. It was at this time that RAC decided to focus on the roast beef business. The JAX restaurants were renamed Rax in 1978 to be more suitable for trademarking and franchising, with the first Rax branded restaurant opening in Columbus, Ohio. They renamed themselves Rax Systems Inc., then again to Rax Restaurants Inc. in 1982. By then, Rax had grown to over 221 restaurants in 25 states. [http://books.google.com/books?id=0nYcgnWKWXgC&pg=RA1-PA773&lpg=RA1-PA773&dq=rax+restaurants&source=web&ots=QB_3y2mN2W&sig=ko2KFBCHDeeQjDCtXOvTiUtLf4M "Fast Food: Roadside Restaurants in the Automobile Age"] by John A. Jakle & Keith A. Suclle, p. 173 (1999)]

At its peak in the 1980s, the Rax chain had grown to 504 locations in 38 states along with two restaurants in Guatemala. [ [http://strategis.ic.gc.ca/epic/site/imr-ri3.nsf/fr/gr102544f.html Franchising in Guatemala] by Raguel De Urrutia, "U.S. & Foreign Commercial Service and U.S. Department of State", March 29, 2000, retrieved November 21, 2007] During this time, Rax began diversifying its core roast beef sales by adding baked potatoes and a dinner bar with pasta, Chinese-style food, an "Endless Salad Bar", and many other entrees. Rax began to transform its restaurants from basic restaurant architecture into motifs of wood and solariums desiring to become the "champagne of fast food". This transformation drove away its core working class customers, blurred their core business, and caused profits to plunge for Rax as others took advantage of Rax's techniques and improved on them, as Wendy's did. Also compounding the decline was a management buyout of the company in 1991 and numerous changes that occurred on the company board. [ [http://findarticles.com/p/articles/mi_hb3402/is_199202/ai_n8158228 "Rax tries to rally"] by Charles Bernstien, "Restaurants & Institutions", February 1992, retrieved October 23, 2007] The downfall eventually bottomed out when the company filed for Chapter 11 bankruptcy in December 1992 and the company scaled back many of its stores to its core markets, particularly Ohio, Pennsylvania, and West Virginia. [ [http://www.findarticles.com/p/articles/mi_m3190/is_n49_v26/ai_13004241 "Struggling Rax Restaurants files for Chap. 11 protection"] by Bill Carlino, "Nation's Restaurant News", December 7, 1992, retrieved September 1, 2006]

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. [ [http://findarticles.com/p/articles/mi_m3190/is_n18_v28/ai_15189735 "Alliance with Rax boosts Hardee's to 4,112 units - Rax Restaurants Inc., Hardee's Food Systems Inc"] by Theresa Howard, "Nation's Restaurant News", May 2, 1994, retrieved November 23, 2007] Heartland planned to convert all Rax restaurants into Hardee's by 1997. [ [http://www.findarticles.com/p/articles/mi_m3190/is_n10_v29/ai_16647351 "Heartland Food Systems to shed Rax Restaurants"] by Bill Carlino, "Nation's Restaurant News", March 6, 1995, retrieved September 1, 2006] 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. [http://www.findarticles.com/p/articles/mi_m3190/is_n7_v30/ai_17995939 "Heartland Food returns to Rax roots - Heartland Food Systems Inc. repositions Rax Restaurants concept"] by Suzanne Kapner, "Nation's Restaurant News", February 12, 1996, retrieved September 1, 2006]

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. However, in November 1996, Wendy's International made an offer to purchase 37 Rax restaurants, intending to convert most of them to Tim Hortons. This caused a change in strategy, and a buyer was sought for the remaining company-owned restaurants. [ [http://libpub.dispatch.com/cgi-bin/documentv1?DBLIST=cd96&DOCNUM=25380 "Rax Name Appears Likely To Survive Transformation"] by Debbie Gebolys, "The Columbus Dispatch", November 6, 1996, retrieved September 1, 2006] Since then, the Rax brand has been owned by Cassady & Associates [ [http://www.bizjournals.com/columbus/stories/1997/08/25/story5.html "Cassady seeks investors for Dalt's, Rax expansion"] by Brian R. Ball, "Business First of Columbus", August 22, 1997, retrieved January 26, 2007] , and more recently, Carpediem Management Company, both based around Columbus, Ohio.

As other fast food places added something for the kids, Rax also created their mascot, Uncle Alligator, who was dominant in all kid's meals and toys, always involving some sport or activity (e.g. skateboarding). [ [http://web.archive.org/web/20051230123237/www.rax-online.com/Kids/KidsPages.htm Kids Pages] , Kids Pages on rax-online.com]

Current status

Rax locations that are still open today are franchisee-owned, with the right to use the Rax name as long as the store is in operation. Many locations have closed in the last few years, and the chain has been reduced in size to 12 franchised locations and just two corporate stores.

In December 2007, Rich Donohue, a franchise owner with restaurants in Ironton, OH and Ashland, KY, purchased the Rax trademark. The new company, From Rax to Rich's, purchased the name to bypass licensing costs, and plan on opening more restaurants in Ohio and Kentucky. At least three new locations are currently in the planning stages.

logans

"All the right stuff." [ [http://findarticles.com/p/articles/mi_m3190/is_v18/ai_3549316 "Rax Restaurants plans more new items despite diversity of its extensive menu"] by Joe Edwards, "Nation's Restaurant News", December 3, 1984, retrieved November 23, 2007]
"Fast food with style." [ [http://findarticles.com/p/articles/mi_m3190/is_n5_v22/ai_6342171 "Step aside King Kong: Rax has brought a new ape to town"] by Marilyn Alva, "Nation's Restaurant News", February 1, 1988, retrieved November 23, 2007]
"Nobody Stax Up To Rax"
"Gotta get back to Rax."

References

External links

* [http://www.rax-raxroastbeef.com/ From Rax to Rich's Official Website]
* [http://columbusrestauranthistory.com/restaurant/chains.htm Columbus Restaurant History - Chains Page] List of former Rax locations in Columbus, Ohio.