Wendy’s Reviews Its Restaurants Amid Sales Decline
The fast-food chain Wendy’s is collaborating with its franchisees to address underperforming locations. The company’s plan includes investing in upgrades, improving service, selling certain restaurants, or potentially closing them.
Executives indicated that the review could affect hundreds of restaurants nationwide as the chain seeks to strengthen operations and boost sales growth. The process aims to refine the brand’s image and enhance overall customer experience.
“When we look at the system today, we have some restaurants that do not elevate the brand and are a drag from a franchisee financial performance perspective,” said interim CEO Ken Cook. “The goal is to address and fix those restaurants. So in some cases that’s going to mean deploying operational improvements, deploying additional technology or equipment.”
Potential Closures and Improvements
According to Cook, a mid-single-digit percentage of U.S. stores—fewer than 300 locations out of nearly 6,000—could close following the review. The closures are expected to begin later this year as part of a broader effort to enhance efficiency and profitability.
Franchise Support Initiatives
- Developing individualized plans for struggling restaurants.
- Encouraging investments in operations and customer service.
- Evaluating sales or transfers to other franchise owners.
- Introducing new technology and equipment to improve performance.
Author’s summary: Wendy’s plans a strategic review that could shutter about 5% of its stores as it seeks to modernize operations and revitalize brand performance.