DUBLIN, Ohio -- After losing market share and watching its stock perform poorly, Wendy’s is ready to take on its quick-serve brethren in breakfast, modernized stores and premium offerings. The strategy already has analysts anticipating it could unseat Burger King as the No. 2 burger brand.
At Wendy’s Investor Day Monday, CEO Emil Brolick mapped out how he and his team are “re-establishing Wendy’s as the quality leader and innovator.”
Breakfast. The fastest-growing day-part at 22% of quick-serve business, breakfast accounted for only 2.2% of Wendy’s sales in 2010, according to the Financial Times. Compare that with McDonald’s, which saw a quarter of sales come from the morning meal. So it’s no surprise the company sees big opportunity in breakfast. The new menu will roll out throughout 2012, with items such as the Artisan Egg Sandwich, Honey Butter Chicken Biscuit and Mornin’ Melt Panini.
Coffee. Wendy’s has been testing its Redhead Roasters specialty coffee brand (pictured here; click here for previous coverage from Fare Digest), which includes flavored lattes as well as a line of baked goods. “We wanted to carve that [brand] out and make it independently successful,” Brolick told CNBC.
Marketing. The company plans a new marketing message that positions itself as a premium option. Similar marketing tactics have recently been adopted by Burger King and McDonald’s.
Store Remodels. In 2011, 10 stores were remodeled with a modern design including a fireplace, flat-screen TVs, lounge area and Dave Thomas quotes about “freshness” adorning the walls. This year, Wendy’s plans to remodel 50 company-owned stores and build 20 new locations with the updated design.
Other strategies includes extending operating hours for late-night dining, and rolling out more premium menu items such as panini sandwiches and the Black Label hamburgers line--which is currently being tested at price points of $4.49 to $4.69. Varieties include Bacon Portabella and the Spicy Santa Fe.
As Wendy’s strategy continues, some are already anticipating success. Last month analysts at Janney Capital Markets projected that Wendy’s will overtake Burger King for second place in market share later this year, according to the Financial Times. That would put it directly behind McDonald’s, whose success in breakfast and coffee is certainly within Wendy’s sights.
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