Analysts Question Wendy's Flight to 'Quality' Positioning
Analysts Question Wendy's Flight to 'Quality' Positioning
Wendy's really has flipped its wig. The No. 3 burger chain has elected to focus on adult consumers rather than "heavy fast-food users"ages 18-24—a move that some analysts are calling risky.
While McDonald's and Burger King have enjoyed a rise of mid-single digits in same-store sales this past year, Wendy's sales have been largely flat each of the past three years. During this period Wendy's has vacillated between frat humor (the widely panned red-wig ads) and more-straightforward fare (its current "It's waaaay better than fast food"effort).
This schizophrenic brand messaging is about to stop, per the company. Last week, Nelson Peltz' Triarc closed its $2-plus billion deal to purchase the chain. CMO Ken Calwell, who returned to the company after seven years at Domino's, has been given his marching orders: Target adults with a quality message.
"We're not going to focus as narrowly as our competitors, like Burger King, who target the 18-24 group. Our media buy will be skewing older, more broadly,"said Wendy's rep Bob Bertini. "Our research shows consumers still give us credit for high quality. That's a platform we can continue to build upon to differentiate ourselves from our competitors. Quality is our platform."
While McDonald's and Burger King have enjoyed a rise of mid-single digits in same-store sales this past year, Wendy's sales have been largely flat each of the past three years. During this period Wendy's has vacillated between frat humor (the widely panned red-wig ads) and more-straightforward fare (its current "It's waaaay better than fast food"effort).
This schizophrenic brand messaging is about to stop, per the company. Last week, Nelson Peltz' Triarc closed its $2-plus billion deal to purchase the chain. CMO Ken Calwell, who returned to the company after seven years at Domino's, has been given his marching orders: Target adults with a quality message.
"We're not going to focus as narrowly as our competitors, like Burger King, who target the 18-24 group. Our media buy will be skewing older, more broadly,"said Wendy's rep Bob Bertini. "Our research shows consumers still give us credit for high quality. That's a platform we can continue to build upon to differentiate ourselves from our competitors. Quality is our platform."
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