Wendy’s Reviews Underperforming Restaurants to Boost Sales
The fast-food burger chain is collaborating with franchise owners to decide whether to improve, sell, or close weaker outlets as part of a plan to reverse a recent decline in sales. Executives emphasized that the company’s focus is shifting toward enhancing service quality and increasing sales volume per unit.
Franchise Collaboration and Strategic Options
During an investor meeting in Dublin, Ohio, executives described several possible outcomes for struggling restaurants. These include investing in facilities, improving operations and service, selling to other franchisees, or closing certain locations.
“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.”
Potential Closures Ahead
Cook explained that a mid-single-digit percentage of U.S. restaurants could close following this strategic review. With nearly 6,000 Wendy’s locations nationwide, this would represent fewer than 300 closures. The company expects the first of these changes to begin later this year.
Focus on Modernization and Efficiency
Management aims to deploy operational upgrades, advanced technology, and new equipment to strengthen the performance of its restaurants and maintain brand consistency across its network.
Author’s summary: Wendy’s plans to streamline operations by reviewing weak locations, focusing on modernization, and potentially closing up to 300 U.S. restaurants to enhance profitability.