Wendy's Evaluates Underperforming Restaurants
The fast-food burger chain Wendy's is closely examining its weaker locations to address a recent decline in sales. The company, based in Dublin, Ohio, is collaborating with franchisees to decide the future of these stores.
Plans for Struggling Restaurants
Wendy’s executives outlined several options for underperforming restaurants, including:
- Investing in service, operations, and equipment upgrades
- Selling stores to other franchisees
- Closing some locations, possibly starting this year
Potential Closures
Ken Cook, the interim CEO, mentioned that a “mid-single-digit percentage” of U.S. Wendy’s restaurants might shut down after a thorough review. Given that the chain operates nearly 6,000 locations, this could mean closing fewer than 300 stores.
"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," Cook said. "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."
Focus on Brand and Growth
Wendy’s aims to improve service quality and increase unit sales by focusing efforts on locations that support the brand’s overall growth.
"We have some restaurants that do not elevate the brand and are a drag from a franchisee financial performance perspective." — Ken Cook, Interim CEO
Author’s summary: Wendy's is working with franchisees to revamp or close weaker restaurants to reverse sales declines, focusing on improving service and operational efficiency across its network.