Wendy’s Thinks Differently to Unlock Global Growth

For more than 50 years, Wendy’s® has been an established name in the quick service restaurant industry. Many people identify the brand by our iconic square hamburgers or famous Twitter presence, but did you know that Wendy’s is the one of the largest global quick service restaurant brands in the world?

Our vision is to become the world’s most thriving and beloved restaurant brand, and we’re well on our way. Today, we have a global geographic footprint of more than 6,800 restaurants in countries and territories across the U.S., Canada, Latin America and Caribbean, Middle East, Asia-Pacific and soon to be in Europe (hopefully you are following Wendy’s highly anticipated launch in the United Kingdom this year!). Additionally, we are projecting to open about 250 new restaurants in 2021 and grow our footprint to about 7,000 restaurants globally by the end of this year.

So, how exactly do we plan to meet these accelerated growth goals? Last year taught us that while we cannot predict what tomorrow will bring, we can proactively design for our future. As we emerge from the global pandemic, we must continue to find creative and convenient ways for consumers to access our brand.

For example, we are re-thinking our operating model and keeping our finger on the pulse of innovative restaurant designs, giving customers more access to our delicious, great-tasting, high-quality food anytime, anyplace, anywhere. We are also building scale by combining traditional, brick-and-mortar restaurant development with other non-traditional venues, such as drive-thru only platforms, curbside pick-up, mobile ordering and dark kitchens, to name a few.

Read on to see how we are thinking differently and being opportunistic to unlock global growth and expand Wendy’s brand presence in markets around the world!

Building Scale with Dark Kitchens

Dark Kitchens. Ghost Kitchens. Cloud Kitchens. You’ve more than likely heard these buzz words, but what do they mean? At Wendy’s, we use the term “dark kitchen”, which is a restaurant that caters to one of the fastest growing sectors of the market: delivery. These delivery-only restaurants come in various shapes and sizes and provide a low-cost alternative to reach customers in urban markets.

Canada

Last November, Wendy’s Restaurants of Canada announced the brand’s move into the growing dark kitchen space through a partnership with REEF’s Neighborhood Kitchens in Toronto. This move was the first of several to come, as dark kitchens are an important component of our non-traditional growth strategy. As we explore new avenues and formats to reach customers, REEF’s proximity-based network of delivery-only Neighborhood Kitchens enables us to test a new format in dense downtown areas and address the evolving needs of today’s urban Canadian consumers. As of late March this year, our Wendy’s Canada team has opened five Neighborhood Kitchens across Toronto, Ontario.

India

In December 2020, The Wendy’s Company, Rebel Foods and Sierra Nevada Restaurants announced a strategic partnership in India to open approximately 400 restaurants over the next decade. As part of the expansion plans, Rebel Foods will partner with Sierra Nevada Restaurants to develop and operate approximately 250 Wendy’s cloud kitchens across India, and Sierra Nevada will develop 150 traditional Wendy’s restaurants. This reflects our commitment to growing our International business in strategic, high-growth potential markets through both traditional restaurant expansion and digital innovation.

Being Opportunistic with Real Estate

We are helping franchisees grow faster and expanding our brand presence around the world, through the creation of a conversion taskforce, which looks for growth opportunities in today’s prime real estate market.  From scouting former retail locations to taking over buildings our competitors previously occupied (our favorite), we are thinking creatively by transforming existing locations into a brand new, beautiful Wendy's restaurant. With this new approach we have significantly increased our development speed and narrowed the time between site selection to construction start.

United States

Our franchise partners, Mike O’Malley and John Hughes and VP of Development Eric Sack from Wendy’s of Bowling Green recently finished a successful restaurant conversion in Owens Cross Roads, Alabama. This restaurant renovation was completed in near record time – in less than six months, the team went from canvassing the market to selling the first Frosty® in Owens Cross Roads.

Guatemala

Wendy’s franchisee, Rodrigo Aldana of CORALSA was exploring new ways to stand out in a highly competitive market. As customers continue to look for more safe, contactless options to access food, the local team identified that drive-thru would be the best asset type for this space. Rather than investing in the cost of a new build, the team was able to take advantage of an existing structure in the area by converting a former bank into a new Wendy’s restaurant! This approach reduced the time of permitting and construction cost, while taking advantage of the market’s high customer demand for delivery and the pick-up window.  

Differentiating with Drive-thru Only Models

Drive-thrus are a fast, frictionless and convenient channel for our customers. We started working on drive-thru only concepts before the pandemic, and over the past year, a number of franchisees around the world have signed up to take advantage of this new asset type. Drive-thru only models are also smaller in size, which allows us to consider spaces that wouldn’t traditionally fit a free-standing restaurant design.

Philippines

In March, Wendy’s franchisee, Joey Garcia of Eight-8-Ate recently opened the second drive-thru only model located in Antipolo City, Philippines. This restaurant is the first of its kind in the Philippines, located on the property of a gas station off of the Phoenix Marcos Highway. While the building structure is only 645 square feet, this small space offers a big impact! The restaurant has an external pick up window offering park and order 24/7 and delivery services for its neighboring residential and commercial community. This new restaurant model marks another step in our global growth strategy in diversifying how we bring Wendy’s to more consumers in ways that are convenient to them.

Looking to learn more about Wendy’s global growth initiatives? Follow Wendy’s on LinkedIn for frequent updates or if you have questions, tweet us @Wendys! Additionally, we’re always looking for existing buildings, like banks or retail spaces, to convert into a new Wendy’s restaurant. Email us at [email protected] with opportunities!