Wendy’s is among the most well known QSR brands, and headquartered in the United States. The QSR company has achieved impressive growth in recent years. As of the January of 2022, Wendy’s had a total of 6,949 restaurants operational globally, the majority of which were located in the United States. A large number of Wendy’s restaurants are operated by franchisees.
The company had 5,938 restaurants stores operational in the US in January 2022. Of the total US based restaurants, 5,535 were operated by 228 independent franchisees. Internationally the company operated 1,011 restaurants in 31 countries.
Wendy’s experienced solid growth in its net revenues in 2021 compared to the previous year. Its net revenues climbed to $1.9 billion in 2021 compared to $1.73 billion in the previous year.
In this marketing mix, we will discuss the four Ps of Wendy’s marketing mix including product, place, price and promotion.
A Marketing Mix of Wendy’s: Four Ps
Product mix:
While Wendy’s specializes in hamburger sandwiches, the company offers a more diverse menu that includes several more items. Apart from hamburger sandwiches, the QSR brand offers chicken nuggets, chili, french fries, baked potatoes, freshly prepared salads, soft drinks, Frosty desserts and kids’ meals.
It also sells a variety of promotional products on a limited time basis. The QSR brand also offers a diverse breakfast menu. Its breakfast menu includes breakfast sandwiches, biscuits and croissants, sides such as seasoned potatoes, oatmeal bars and seasonal fruit, and a beverage platform that includes hot coffee, cold brew iced coffee and its special vanilla and chocolate Frosty-ccino iced coffee.
The focus of the brand remains on taste and quality, which are the most important factors driving the popularity of Wendy’s restaurants among customers.
Place:
Wendy’s was founded in 1969, when Dave Thomas opened his first Wendy’s restaurant in Columbus. Ohio. The company has its headquarters at Dublin, Ohio, United States. It has extended its operations to 31 countries outside the United States.
In January, 2022, the company had 6,949 restaurants operational worldwide. 95% of its restaurants were operated by independent franchisees whereas only 5% were operated by the company. The total number of franchised restaurants in the United States was 5,535 in January, 2022. Outside the US, the company also operates five restaurants in the UK and rest are operated by franchisees.
Outside the United States, the company has expanded to 31 countries. The company has divided its business into three operating segments that include Wendy’s United States, Wendy’s international and global real estate and development. Its largest operating segment is the United States, which accounted for more than 90% of the company’s revenues in 2021. Its sources of revenues include sales at Company-operated restaurants and royalties, fees and advertising fund collections from franchised restaurants. Overall, the company has maintained an impressive footprint in its leading market, the United States.
It is also relying more on digital channels for sales and distribution. Customers can order food from Wendy’s using its mobile app or though other food ordering apps. The popularity of digital food ordering apps has grown since the pandemic leading to Wendy’s and its rivals achieving a large part of their sales through online channels.
Price:
The QSR industry is marked by intense price competition. From McDonald’s to Burger King, Subway and other QSR restaurants, there are several leading and international players competing for market share in the QSR industry. In the US also there are several local and international players that are the rivals of Wendy’s.
Pricing is an important factor that drives demand, popularity, market share and competitiveness of the QSR brands. As such a large number of QSR businesses are heavily relying on competitive pricing to maintain their market share and growth rates.
Wendy’s also relies on competitive pricing which has helped it gain faster growth, strong market position and higher popularity The brand offers a large range of products at competitive prices which helps it successfully attract and retain customers. In order to maintain lower prices, Wendy’s invests in supply chain management and has formed strong relationships with suppliers.
Promotion:
The QSR sector in the United States and the other international markets has continued to experience strong competition. There are a large number of brands competing for market share. Apart from price competition, there is also strong focus on marketing to successfully attract and retain customers.
Wendy’s is among the most recognized and popular QSR brands. It enjoys strong brand awareness in both the United States and several foreign markets. While quality has remained an important driver of popularity for the brand, its branding and marketing strategies apart from customer service have also helped the brand find faster growth. In recent years, the company is focusing more on the use of digital channels for sales and marketing. It spent around $31.6 million on advertising in 2021 compared to $29.7 million in the previous year.
The brand also offers rewards, bonuses, deals and discounts for loyalty and to attract new customers. Apart from its website and apps, the company is using social media channels for promotions and customer engagement. There are around 8.2 million followers on its Facebook page. Wendy’s also uses other social media channels and YouTube for running advertising campaigns, growing brand awareness and to engage its loyal customers.
A few last words about Wendy’s marketing mix:
Wendy’s is among the leading fast food brand enjoying solid brand awareness in various corners across the globe. As of the beginning of 2022, the company had 6,949 restaurants across the globe including in the United States and 31 other foreign countries and territories. As a leading fast food brand, Wendy’s has always focused on quality which has remained a major driver of popularity and customer loyalty for the company across all its markets. apart from its diverse product mix, the company is excellent in terms of pricing, distribution and promotions as well. It has followed a competitive pricing strategy which has led to impressive sales and revenues. However, compared to the international markets, which account for only a small part of its total sales, the density of Wendy’s restaurants in the United States is much higher. At the beginning of 2022, the number of Wendy’s restaurants in the US was 5,938.
A large number of its restaurants across the globe are operated by franchisees. In the use alone only 403 of its restaurants were operated by the company at the beginning of 2022. The remaining 5,535 of its restaurants in the United States were operated by franchisees. A total 228 independent franchisees operated the Wendy’s restaurants in the United States. Like several other leading brands in the fast food industry, Wendy’s has also adopted a franchised business model. In the overseas markets where a total of 1,011 restaurants were operational at the beginning of 2022, the company operated only five in the UK and the rest were run by the franchisees.
Wendy’s enjoys a strong brand image and is among the most popular and well known QSR brands. It does not spend a huge sum on marketing and its total marketing expenditure in 2021 remained $31.6 million. However, the company is using digital channels mainly for sales and promotions as well as customer engagement. Its focus on product quality and customer service continue to drive higher customer loyalty and strong sales.