5 Big Changes You'll See at Wendy's This Year

Wendy's: The Iconic Burger Joint That Stole the Crown

Ever wonder how Wendy's rose to become one of the most well-known burger companies worldwide?

In what ways did the nickname of Dave Thomas's daughter have a lasting impact on the fast food industry?

What's the recipe for Wendy's prosperity and its capacity to take on food industry heavyweights like Burger King and McDonald's?

We'll go into Wendy's intriguing past and examine the components that have made this burger chain a beloved classic in this blog post.

Founded by Dave Thomas in 1969, Wendy's, one of the most recognizable burger companies ever, has come a long way since then. After Thomas chose to name the eatery after his daughter Melinda Lou, also known as "Wendy," well, the rest is history.

Thanks to its distinctive image featuring a young Wendy Thomas with pigtails, the Wendy's brand is now instantly recognizable throughout the world. Naturally, Wendy's success isn't solely due to its excellent branding. For more than 60 years, the restaurant has been satisfying customers' hunger with mouthwatering burgers and sides.

Usually ranking behind McDonald's and Burger King, Wendy's is among the top three most lucrative burger businesses in the United States. On occasion, Wendy's has even surpassed BK to take the #2 slot. It took place as recently as 2021 and once in 2012. Wendy's had a particularly successful year last year. By the end of 2022, the fast-food company had over 7,000 locations and over $2 billion in revenue.

Todd Penegor, President and CEO of Wendy's, stated during the Q4 earnings call, "Our strong 2022 results and the progress we made against our strategic growth pillars have laid the foundation for continued growth for years to come." "In the fourth quarter, our breakfast sales accelerated while our global digital business reached record highs, and over the course of the year we opened over 275 restaurants across the globe despite a difficult operating environment."

In just Q42022, the burger chain brought in over $535 million in revenue, a 13.4% increase over Q4021 ($473.2 million). The company projects that worldwide system-wide sales will increase by approximately 6-8% in 2023.

"We believe that over the coming years, a new gear of effective, rapid growth will be delivered by our considerable business momentum and the excellent execution of our top initiatives. I have no doubt that Wendy's finest days are still ahead of her, and we'll keep moving in the right direction to realize our goal of becoming the most popular and successful restaurant brand in the world," Penegor added.

In fact, Wendy's is well-positioned to undertake several significant initiatives in 2023 with the goal of boosting sales, visibility, and growth. Let's examine the five significant adjustments Wendy's will be making this year.

Next-gen restaurants  

Wendy's revealed its plans for the future of physical fast-food outlets in August 2022. Dubbed "Global Next Gen," the new design aims to simplify the fast food experience in every way possible, from a new galley-style cooking layout to the newest ordering technologies.

Newly designed units will have a delivery pick-up window, dedicated parking for delivery drivers, movable order pick-up shelf, and enhanced infrastructure to assist reduce energy costs, among other upgrades and improvements.

"As the first restaurant brand to offer a modern pick-up window more than 50 years ago, Wendy's continues its legacy of design and innovation with Global Next Gen," Penegor stated at the time. "Our new global restaurant standard unlocks opportunities at the intersection of innovative design and technology, bringing us one step closer to our vision of becoming the world's most thriving and beloved restaurant brand."

In the spring of 2023, the first Global Next Gen Wendy's restaurant is scheduled to open in New Albany, Ohio.

An emphasis on breakfast

The inventive French toast sticks that Wendy's introduced in 2022 swiftly rose to the top of the chain's breakfast menu. Although Wendy's has only started offering breakfast for the past three years, the company hopes that morning sales will play a significant role in its future success.

During the most recent earnings call, Penegor stated, "We are extremely proud of the profitable sales layer our U.S. breakfast business has become over the last three years." "Continuing to grow our breakfast daypart will remain an area of focus for us as we move forward and will be one of the many levers we will utilize to deliver global growth."

In the meanwhile, Wendy's just said that, through June 2023, participating restaurants around the country would once again offer the beloved $3 breakfast deal. For an only $3, patrons may purchase a Wendy's Bacon or Sausage, Egg & Swiss Croissant, along with a small plate of crispy Seasoned Potatoes.

Domestic & international expansion plans

With more than 5,000 outlets in the United States and more than 7,000 worldwide, Wendy's is a chain that shows no signs of slowing down its growth. As stated by CEO Todd Penegor, the burger company is genuinely "underpenetrated with thousands of potential trade areas that sit untapped and without a Wendy's."

Wendy's is expanding its global presence on a global scale. In 2021, the chain made a comeback to the United Kingdom following over two decades away. In 2023, there are more than twenty Wendy's restaurants in the United Kingdom. By 2024, the company also intends to join the Spanish and Irish markets.

"Our results have never been stronger across many markets in our Latin American region, and we plan to leverage this momentum to accelerate unit development over the coming years," Penegor stated. "We are particularly focused on growing our footprint in Mexico, where we have a strong track record of sales growth and an outstanding brand reputation for quality."

Abigail Pringle, the president of Wendy's, told the Australian press earlier this year that the company is considering opening a location in Australia—and we're not just talking about one or two eateries. "We think that the Australian market could be hundreds of restaurants," she stated.

New technology

2023 will see a lot of chatter about AI, and the fast food sector is not exempt. In an attempt to enhance experiences for both workers and consumers, numerous chains are experimenting with AI and automation, and Wendy's is at the forefront of this trend. Wendy's and Google Cloud collaborated in late 2021 to create voice-recognition artificial intelligence for drive-thru order taking.

Our singular emphasis is forming strategic alliances with top-tier technology firms to optimize the customer, crew, and delivery driver experiences across the board. During the Q4 results call, Penegor stated, "This includes continuing to build our one-to-one marketing capabilities to drive truly personalized relationships with our loyalty members and integrating digital into the DNA of what we do every day at our restaurants through our global next-gen design." "We are also leaning in by testing emerging technologies, like voice and vision AI, to reduce friction throughout the ordering experience."

Although Wendy's anticipates making around $1.5 billion in digital sales this year, the firm is embracing contemporary technologies in ways that go beyond catering to its patrons. Workers at more than 1,000 Wendy's restaurants are currently using the newest DSG 2.0 grills, which can cook hamburgers in around half the time it would take to make them on an earlier model.

The more we can process orders and payments outside of the restaurant, the more efficient we will be in everything we try to encourage people to order on their phones. Additionally, he said, "We are testing a lot of speech and vision AI as part of our Google cooperation.

Going green

Wendy's promised two years ago to create and verify a science-backed goal for cutting its greenhouse gas emissions from Scope 1, 2, and 3 by the end of 2023. To put things in perspective, Scopes 2 and 3 deal with more indirect emissions related to products or services that a business purchases. Scope 1 deals with emissions that are directly traceable to a firm (company vehicles, buildings, etc.).

The burger business made good on its earlier-year pledge when it revealed its official emissions reduction objective, which is to cut Scope 1, 2, and 3 emissions by 47% by the end of this decade (2030).

According to Liliana Esposito, Chief Corporate Affairs and Sustainability Officer at Wendy's, the company is already actively working on building a more climate-friendly infrastructure now that the goal has been set. The company's initial goal is to increase energy efficiency.

She told Restaurant Business, "And that's good news for a restaurant because it's going to cost you less if you're using less energy, less electricity." "And so, there's a number of efficiency-related projects related to equipment, related to lighting, our overall new restaurant design, which we call the Global Next Gen."

Frequently Asked Questions

Why is the restaurant called "Wendy's"?

The restaurant is named "Wendy's" after the founder's daughter, Melinda Lou, who was nicknamed "Wendy."

How is Wendy's branding unique?

Wendy's branding is unique because it features an iconic logo depicting a young pig-tailed Wendy Thomas, the founder's daughter.

Has Wendy's ever ranked higher than Burger King within the industry?

Yes, Wendy's has occasionally dethroned Burger King for the number two spot in the U.S. behind McDonald's.

Conclusion

In summation, inventive branding and unwavering culinary excellence are the foundations of Wendy's status as a burger empire. With its endearing founder's narrative and recognizable emblem, it embraced the power of storytelling and quickly won over customers all over the world.

Wendy's has continuously been one of the most lucrative burger franchises in the United States, demonstrating that diners are still drawn to the company's winning combination of iconic branding and delectable food. Mom always said, "Dad never took his eye off the main prize: Feeding people really good food at a fair price." This is Wendy's daughter Melinda Lou. And it's a mindset that surely helped to mold Wendy's into the gastronomic giant it is today.