Wendy's is carefully reviewing its weaker restaurants as part of efforts to reverse a sudden decline in sales. The fast-food chain is collaborating with franchisees to determine the best course of action for struggling locations.
The Dublin, Ohio-based company is exploring several solutions, including investments in operations, service enhancements, and possible sales of stores to other franchisees. Closures are also being considered, potentially starting this year.
Ken Cook, Wendy’s interim CEO, stated, "A mid-single-digit percentage of U.S. restaurants could end up closing in the aftermath of that review."
With just under 6,000 locations nationwide, this suggests fewer than 300 restaurants may close.
"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," Cook explained. "The goal is to address and fix those restaurants. So in some cases that’s going to mean deploying operational improvements, deploying additional technology or equipment."
Wendy's is actively working with franchisees to repair, sell, or close underperforming restaurants to improve overall brand strength and drive growth.
Author's summary: Wendy’s is implementing strategic changes with franchisees to improve service and sales, including potential closures of underperforming restaurants, aiming to strengthen its market position.