One Of America's Biggest Fast Food Chains Is Closing Hundreds Of Restaurants
Fast food chains across the US are facing challenges due to changing consumer habits and rising costs. This year alone, major brands like Jack-in-the-Box and Starbucks have shut down hundreds of locations. Other chains such as KFC, Del Taco, and Pizza Hut have also reported declining sales.
The industry’s struggles follow a particularly harsh 2024, during which many sit-down restaurant chains filed for bankruptcy within months of each other. Now, Wendy's has announced it will be closing numerous restaurants as part of a strategic downsizing.
Wendy's Restaurant Closures
The interim CEO of Wendy's, Ken Cook, revealed during the company's Q3 earnings call that the chain plans to close a "mid single-digit percentage" of its total stores. With over 5,900 locations in the US at the end of 2024, this suggests about 300 restaurant closures are expected shortly.
Wendy's is looking to close a "mid single-digit percentage" of its total stores.
- Ken Cook, Interim CEO of Wendy's
This follows last year's smaller closure when 140 locations were shut. Cook remains optimistic about the brand's overall health, attributing the decision to underperforming stores that were negatively affecting the chain's image.
Future Plans for Growth
Alongside closures, Wendy's is focusing on renovating existing stores and implementing new technology to boost performance in struggling outlets.
"The chain is also looking to renovate stores and add new technology to help improve sales in these struggling locations."
These efforts aim to strengthen the brand amid an evolving fast food market.
Author's summary: Wendy's is closing around 300 underperforming US locations to focus on store renovations and technology upgrades, reflecting ongoing challenges in the fast food industry.