Wendy's

Wendy's
Type Wholly owned subsidiary
Industry Restaurant
Founded Columbus, Ohio, United States (November 15, 1969 (1969-11-15))
Founder(s) Dave Thomas
John T. Schuessler
Headquarters Dublin, Ohio, United States
Number of locations 6,650 stores (2010)
Area served Worldwide
Key people Dave Thomas Founder
Wendy Thomas namesake
John T. Schuessler Co-Founder
Products Hamburgers
Chicken sandwich
Salads
Breakfast sandwich
Frozen dessert
Revenue increase $2.469 billion USD (2006)
Net income increase $37.0 million USD (continuing operations) (2006)
Total assets increase $9.45 billion USD (2006)
Employees 57,000 (2007)
Parent Wendy's/Arby's Group
Website http://www.wendys.com

Wendy's Old Fashioned Hamburgers is an international fast food chain restaurant founded by Dave Thomas on November 15, 1969, in Columbus, Ohio, United States. The company decided to move its headquarters to Dublin, Ohio, on January 29, 2006. As of March 2010, Wendy's was the world's third largest hamburger fast food chain with approximately 6,650 locations, following McDonald's 31,000+ locations and Burger King's 12,000+ locations.[1][2][3] On April 24, 2008, the company announced a merger with Triarc, the parent company of Arby's. Despite the new ownership, Wendy's headquarters remained in Dublin.[4] Previously, Wendy's had rejected more than two buyout offers from Triarc Companies Inc. Following the merger, Triarc became known as Wendy's/Arby's Group, a publicly traded company.

Approximately 77% of Wendy's restaurants are franchised, the majority of which are located in North America. Wendy's and its affiliates employ more than 46,000 people in its global operations. In fiscal year 2006, the firm had $2.469 billion (USD) in total sales.[5] While Wendy's sets standards for exterior store appearance, food quality and menu, individual owners have control over hours of operations, interior decor, pricing and staff uniforms and wages.

Wendy's menu consists primarily of hamburgers, chicken sandwiches, French fries and beverages, including the Frosty. The company does not have a signature sandwich, such as the Big Mac or the Whopper. Instead, the square burger patties it uses in its sandwiches are the signature item. The company also advertises that its burgers are made from fresh ground beef, not frozen patties.

Contents

History

Wendy's freestanding unit in Hillsborough, North Carolina

The chain is known for its square hamburgers and the Frosty, a form of soft serve ice cream mixed with frozen starches. The idea for Wendy's "old fashioned" hamburgers was actually inspired by Dave Thomas's trips to Kewpee Hamburgers in his home town of Kalamazoo, Michigan. The Kewpee sold square hamburgers and thick malt shakes, much like the well-known restaurant that Thomas eventually founded in Columbus, Ohio, in 1969. Within a year, Thomas opened a second restaurant in Columbus, featuring what Wendy's claims in its corporate history was "the first modern-day, drive-thru window," added in 1971. While not the first, Wendy's crafted the formula for drive-thru operations that made it a staple in the fast food industry. The Columbus location was closed in March 2007 due to declining sales.[6] Thomas named the restaurant after his fourth child Melinda Lou "Wendy" Thomas.[7] Photographs of her were on display at the original Wendy's restaurant until it closed.

In the 1980s, Wendy's was the first fast-food chain to introduce the salad bar. Garden Sensations salads were added in 2002.[8]

In response to a 1986 slowdown in the chain's performance, Wendy's restructured its cleanliness standards, menu and other operational details to ensure that stores met the goals and standards of the parent company so that its franchises were competitive in the market.[5]

Jim Keet, later an Arkansas state legislator, brought the first Wendy's outlets to his state and eventually operated, with a partner, twenty-seven restaurants in Arkansas and Texas.[9]

Menu

Wendy's headquarters in Dublin, Ohio

Wendy's offers two different hamburger patties, a "Junior" 1.78 ounce (50.4 gram) patty and its "Single" 4 ounce (113.4 gram) patty. 4 ounce patties are sold in single, double and triple sizes whereas the junior patties sell in single and double patties. The previous size of 2 ounces per junior patty was altered to its current size in 2007 to save on expenses from rising food costs. Originally Wendy's had only two kinds of chicken sandwiches, fried and grilled. The spicy chicken sandwich started out as a promotional sandwich. It was later put on the menu full-time in 1996 due to its popularity and the fact that, compared to most promotional sandwiches, it was much simpler to make (it used the same condiments as the standard breaded chicken sandwich).

The Frescata line of sandwiches also went from being promotional items to main-menu items. After going through several revisions, the Turkey and Swiss and the Ham and Swiss were put on the menu full-time. However, the Frescata sandwiches were discontinued in December 2007.

In 1988, Wendy's was the first fast-food chain to create a single price-point value menu where all items listed on that menu were priced exclusively at 99¢. The menu was restructured in 2007 due to rising costs as the Super Value Menu with prices ranging from 99¢ to $2.00 USD.

Breakfast

In mid-2007 Wendy's began a national debut of its new breakfast menu in its U.S. and Canadian stores. Wendy's experimented with serving breakfast for a short time in the mid-1980s, but the endeavor was unsuccessful due to many issues.[10][11] While approximately 12 Wendy's restaurants in the U.S. and its territories have been serving breakfast since then, Wendy's has not had a company-wide breakfast offering.[11][12] The new breakfast menu was expected be fully deployed to all Wendy's in the United States by the end of 2009, but as of July 2010, many Wendy's franchises across the country still do not have a breakfast menu.

The new breakfast menu differs slightly from the one featured in the 1980s, and it is structured similarly to its lunch/dinner menu, with value meals and various sides like blended fruit.[12] Menu items include several breakfast sandwiches served on biscuits, frescuit and Kaiser rolls, breakfast burritos and side orders of hash browns, muffins, and cinnamon sticks.[13] In order to avoid the same issues the original 1980s breakfast offerings faced, the new menu was designed for ease of operation, lower costs, and reduced preparation time.[11]

Menu items

Advertising

After successful early growth of the chain, sales flattened as the company struggled to achieve brand differentiation in the highly competitive fast-food market. This situation would turn around in the mid-1980s. Starting on January 9, 1984, elderly actress Clara Peller was featured in the successful "Where's the Beef?" North American commercial campaign written by Cliff Freeman. Her famous line quickly entered the American pop culture (it was even used by Walter Mondale in a debate with Gary Hart in the Democratic primary election) and served to promote Wendy's hamburgers. Peller, age 84, was dropped from the campaign in 1985 because she performed in a commercial for Prego spaghetti sauce, saying she "finally found" the beef.[15]

Peller was soon after replaced by Wendy's founder Dave Thomas himself. Soft-spoken and bashful, the "Dave" ads generally focused on Thomas praising his products and offering a commitment to quality service, although there would occasionally be "wackier" ads as well. In 1997, the company pulled its advertising from the sitcom Ellen after the show's main character came out as a lesbian. The result was an inconsequential boycott initiated by the gay and lesbian community.[16] After Dave Thomas' death in 2002, Wendy's struggled to find a new advertising campaign. After a round of conventional ads describing the food they serve, in 2004 they tried using a character they made called "Mr. Wendy" who claimed to be the unofficial spokesperson for the chain. These proved to be extremely unsuccessful. After seven months, Wendy's returned to an animated campaign focusing on the difference between Wendy's square hamburgers and the round hamburgers of competitors.

Wendy's marketing arm engages in product placement in films and television and is sometimes seen on ABC's reality show Extreme Makeover: Home Edition, serving food to the more than 100 construction workers. A recent Wendy's commercial features the tune from the Violent Femmes song "Blister in the Sun."

With their recent "That's right." ad campaign not a success, Wendy's has unveiled a new ad campaign, featuring an animated Wendy that's voiced by Luci Christian highlighting certain menu items. The new ad campaign made its debut in late January 2008, with a new slogan: "It's waaaay better than fast food. It's Wendy's."[17] The company's most recent slogan, "you know when it's real," was introduced in 2009.

Slogans

US – Canada

International

Global locations

See also

References

  1. Hoovers.com. McDonald%27s?cat=biz-fin "McDonald's". answers.com. http://www.answers.com McDonald%27s?cat=biz-fin. Retrieved 2007-08-23. 
  2. "Burger King Domestic and Global facts". http://www.bk.com/companyinfo/corporation/facts.aspx. Retrieved 2007-08-23. 
  3. "About us – Wendy's restaurant". Wendy's/Arby's Group. http://www.wendysarbys.com/about/our-brands/wendysrestaurant. Retrieved 8 March 2010. 
  4. Reuters (2008-04-24). "Triarc Buys Wendy's In A $2.3 Billion Deal". the New York Times. http://www.nytimes.com/reuters/business/business-wendys-triarc.html?sq=Wendy's%20Triarc&st=nyt&scp=1&pagewanted=print. Retrieved 2008-04-24. 
  5. 5.0 5.1 5.2 5.3 Hoovers.com. "Hoover's profile of Wendy's". Answers.com. http://www.answers.com/topic/wendy-s-international?cat=biz-fin. Retrieved 2007-06-29. 
  6. Eaton, Dan (2008-12-19). "Fast food dies slow death downtown". http://www.bizjournals.com/columbus/stories/2008/12/22/story1.html. Retrieved 2009-03-08. 
  7. "Wendy's Founder, Dave Thomas, and the Kalamazoo Kewpee". WWMT. Freedom Broadcasting of Michigan, Inc.. 2002-01-08. http://www.kewpee.com/davethomas.php. Retrieved 2008-06-04. 
  8. 8.0 8.1 "Wendy's launches new salad line, tests breakfast". News & Record (Associated Press). 2010-07-09. http://www.news-record.com/content/2010/07/09/article/wendys_launches_new_salad_line_tests_breakfast. Retrieved 2010-07-09. 
  9. "About Jim Keet". jimkeet4governor.com. http://jimkeet4governor.com/node/1. Retrieved May 12, 2010. 
  10. David Zuckerman (1 July 1985). "Wendy's enters breakfast arena; chain faces fierce competition". Nation's Restaurant News. http://findarticles.com/p/articles/mi_m3190/is_v19/ai_3842394/. Retrieved 2007-07-01. 
  11. 11.0 11.1 11.2 Gazette news services (8 March 2005). "Wendy's considers new breakfast menu". the Billings Gazette. http://www.billingsgazette.com/newdex.php?display=rednews/2005/03/08/build/business/52-wendys.inc. Retrieved 2007-07-01. 
  12. 12.0 12.1 Stock (7 April 2006). "Wendy's to try breakfast at three local stores". The News & Observer. http://www.newsobserver.com/104/story/426227.html. Retrieved 2007-07-01. 
  13. Cheryl V. Jackson (26 June 2007). "Wendy's joins scramble to lure morning diners". the Chicago Sun-Times. http://www.dailysouthtown.com/business/442923,261BIZ2.article. Retrieved 2007-07-01. 
  14. Japanese Wendy's official site
  15. What happened to Clara Peller
  16. Ellen Degeneres Boycott
  17. CNN Money article on news feed
  18. Philip H. Dougherty (1986-06-26). "Wendy's Spot Created By Lockhardt & Pettus". The New York Times. http://query.nytimes.com/gst/fullpage.html?res=9A0DE1DA1230F935A15755C0A960948260. Retrieved 2007-12-29. "The group has a song Fresh that fits in well with the Wendy's theme, Choose fresh. Choose Wendy's." 
  19. Davide Dukcevich (2002-04-09). "Wendy's Salad Days". Forbes Magazine. http://www.forbes.com/2002/04/09/0409wendys.html. Retrieved 2007-12-29. "Earlier this month, Wendy's released a new advertising tagline, "It's Better Here," as part of a campaign that purports to showcase Dublin, Ohio, where it has its headquarters." 

External links