Friday, May 3, 2013
THE BIG MOVE
My favorite fast food restaurant is on the move. I went to Wendy's today and spoke with an assistant manager and asked "moving or adding a new location" and learned the news.
A couple days ago, when I drove by our Kroger store, I saw the front part of the parking lot torn up, a construction trailer parked there, and a sign advertising the new Wendy's Coming Soon. Kroger sold off (or leased) one out-lot to Tim Horton's coffee shop a few years ago. Now they have done it again, with Wendy's Hamburgers.
The projected opening date is July 1st and they will abandon the building in the Washington Square Shopping Center. As I was told today, their current building is old and has outdated equipment. He said Wendy's has new equipment for their enhanced menu options, and it was cheaper to build a new building with all their new equipment, than to renovate the old building. I guess that makes business sense, but that means they are moving to the other side of our 'downtown' area. The 'other side of town' only has three food choices (McDonalds, Subway, and Kentucky Fried Chicken. My end of town has Arby's, Burger King, McDonalds, Wendy's (currently), Ranchers Roast Beef, Subway, Taco Bell, Frischs, Bob Evans, and all the pizza places.
I did more research and went to the website and learned:
"Wendy’s is in the process of changing a whole lot about the company — from introducing new menu items to remodeling stores and crafting an updated logo for the brand. New Wendy’s locations won’t just have a new logo — they’ll also feature Wi-Fi access, fireplaces and digital menu boards. The restaurant remodel is part of a broader campaign that includes the new uniforms and the new logo. It has the advertising component and also marketing, including our digital program and menu innovations.”
The website stated that the significant redesign of their locations costs about $750.000. "But the return on investment is there. We’re seeing lifts of 25 to 30 percent on a sustained basis."
"We are so serious and believe in this program that for 2013, we’ve got a $10 million incentive pool. We will provide a $100,000 incentive to the first 100 franchise restaurants that are remodeled to this design, and we’ve had a very, very strong interest in that from our franchisees."
Therefore, my analysis shows that we are getting a new Wendy's look, upgrades, and conveniences, but I'll have to drive across town to get them. For those who do not live in my area, I'll be clear and tell you that our whole town of 14,000 residents is only about 3 miles wide, so it's really no big deal to drive across town. It just sounds good to say it!