Wendy's chief executive Bob Wright outlined a five-point turnaround strategy on Monday, saying the burger chain sacrificed ingredient quality for cost savings and became too dependent on discounts — factors he said contributed to Wendy's losing its long-held position as the country's second-largest burger chain by U.S. sales.
Wright told The Wall Street Journal that Burger King seized that position by overhauling its Whopper sandwich and modernizing its restaurant fleet. "We have made some decisions around quality that were rooted in efficiency and cost savings," Wright said. "We have let our value equation erode."
Wright, 58, took the helm as permanent president and CEO in May. His turnaround plan covers five areas: food quality and value, operations, store upgrades, marketing, and digital sales. Wright said a comprehensive menu overhaul is needed, working from individual ingredients through finished items and across every major category, including hamburgers, chicken, salads, and the Frosty-anchored dessert lineup.
As part of the leadership overhaul, Wright said Tariq Hassan, a former McDonald's executive, has joined Wendy's in the newly created role of chief marketing and customer growth officer. The current head of U.S. marketing is set to leave the company within weeks. Wright noted that the chain's marketing spending amounts to hundreds of millions of dollars annually, and said both the creative messaging and the way that money is placed across media channels require a rethink.
On the question of store count, Wright acknowledged that net unit losses have accumulated over the last year, with more closures anticipated, and framed those shutdowns as a deliberate mechanism for helping individual franchisees bring greater financial health to their restaurant holdings.
#quality #chief #executive
Wright told The Wall Street Journal that Burger King seized that position by overhauling its Whopper sandwich and modernizing its restaurant fleet. "We have made some decisions around quality that were rooted in efficiency and cost savings," Wright said. "We have let our value equation erode."
Wright, 58, took the helm as permanent president and CEO in May. His turnaround plan covers five areas: food quality and value, operations, store upgrades, marketing, and digital sales. Wright said a comprehensive menu overhaul is needed, working from individual ingredients through finished items and across every major category, including hamburgers, chicken, salads, and the Frosty-anchored dessert lineup.
As part of the leadership overhaul, Wright said Tariq Hassan, a former McDonald's executive, has joined Wendy's in the newly created role of chief marketing and customer growth officer. The current head of U.S. marketing is set to leave the company within weeks. Wright noted that the chain's marketing spending amounts to hundreds of millions of dollars annually, and said both the creative messaging and the way that money is placed across media channels require a rethink.
On the question of store count, Wright acknowledged that net unit losses have accumulated over the last year, with more closures anticipated, and framed those shutdowns as a deliberate mechanism for helping individual franchisees bring greater financial health to their restaurant holdings.
#quality #chief #executive
2 days ago
