SWOT Analysis of Wendy’s

Introduction 

Swot analysis of Wendy’s. Wendy’s is a fast-food US chain restaurant multinational company. Dave Thomas was the founder of Wendy’s, and he laid the foundation of the fast-food brand on Nov 15, 1969. The headquarter of the company is at 1 Dave Thomas Boulevard, Dublin, Ohio, USA.

Wendy’s main products and services are Frozen desserts, Breakfast sandwiches, French fries, Salad, Chicken sandwiches, Hamburgers, beverages, sea salt fries, soft-serve ice cream mixed with starches, and Frosty.

According to an estimate, the annual revenue of Wendy’s in March 2021 was 1.789 billion dollars, and it has increased by 4.91%. Out of which, the net income of the restaurant company was 0.145 billion dollars, and it has increased by 21.15%. However, the company has employed more than 14000 people to manage its various operations worldwide.

Wendy’s top competitors are SubwayMcDonald’sKFCBurger KingChipotleStarbucksPizza HutPanera Bread, Jollibee, and Dunkin Donuts.

Today, we’ll discuss the swot analysis of Wendy’s. Here it’s going to analyze the internal and external factors impacting the world’s leading fast-food chain brand. Here’s the swot analysis of Wendy’s as follows;

Strengths of Wendy’s 

Marketing

Wendy’s uses various social media platforms like Facebook and Twitter and others for marketing and promotion of its brand and products/services. In fact, Dave’s daughter “Red” is the spokesperson of the company and has been efficiently managing the campaign of the company.

Financial Stability

The pandemic of covid-19 turned out to be a real disaster for many businesses and companies in 2020. However, Wendy’s didn’t only thrive in 2020 but also remained profitable. The annual revenue and net income of the company have increased by 4.91% and 21.15% respectively.

Young Market

Wendy’s target market is millennials and young people. Morgan Smith Goodwin played the character of Red (the company’s brand icon), and it has got a lot of similar characteristics of the millennial and it attracts them towards the chain brand.

Brand Image

Wendy’s main product was burgers and used to be its brand image. However, the chain fast-food company has successfully shifted its focus away from junk foods than many of the other brands. It’s because the company offers better quality healthier food to the customers.

Service

Wendy’s has been reinvesting its resources in the restaurant service area in order to give a new look to the company’s brand. Some of those services are digital menu boards, flat-screen TVs, Wi-Fi, comfortable seating arrangements at the booths and the lounge chairs, and the fireplaces. All of these little things collectively send a very modern message to the customers.

Menu

Wendy’s offers variety and personalized items in its menu like Bacon Portabella Melt on Brioche and others which gives the restaurant a unique edge over competitors.

Global Brand

Wendy’s is a global multinational brand and the company is operating its business in more than 30 countries worldwide. However, the restaurant company has a network of 6650 location points.

Weaknesses of Wendy’s 

Limited Market Presence

It’s no doubt Wendy’s is a multinational brand and running its business in 30 countries. However, approximately 90% of the company’s chain network in North American countries. It has a limited a very limited market presence compared to the competitive brands.

Franchising System

Wendy’s is following the franchising business which provides franchisees complete autonomy on day-to-day operations. Some of the franchise owners are quality conscious, and the others are only interested in profit by exploiting the brand name. It impacts the reputation of the parent company.

Unhealthy Fast Food

Many young customers perceive the fast-food as junk food. They put Wendy’s and other brands in the same category of the chain fast-food companies that are producing and delivering junk food.

High Prices

Wendy’s charges high prices for its products and services than the competitive companies. They’re offering the same products of the same quality at lower prices. Some price-conscious customers are moving to other brands.

Opportunities available to Wendy’s 

Acquisition

Wendy’s should consider acquiring smaller restaurants in other countries and rebrand them with the new menu and new products. It would help the company expand its market.

Revised Breakfast

Wendy’s has recently revised its breakfast and the new menu comprises cinnamon sticks, muffins, hash browns, breakfast burritos, Kaiser rolls, fruit, biscuits, and sandwiches. The new breakfast menu has reduced the operational cost and relaxed the process. Overall, the productivity of the company has increased.

Global Expansion

The USA and North America is the major market of Wendy’s. The chain restaurant company should expand its operations in the Asian and European markets. They’ve got a great growth potential and Wendy’s entrance to these markets would strengthen the company’s position.

Threats Wendy’s has to face 

Fast Food Health Issues

Some of the main health issues of the fast-food are obesity, higher blood pressure, cholesterol, and heart issues. Wendy’s also offers fast food as its main menu and the current healthy diet and say no to fast food isn’t good for the company’s business. Even though the company has changed its menu towards healthier food, but it would some time for customers to accept and understand it.

Increasing Cost

The cost of food ingredients and materials has increased significantly along with transportation costs. The increasing operational cost has greatly impacted the retail price of the food.

Competitors

McDonald’s, Starbucks, KFC, and Burger King are some of the main competitors of Wendy’s. They have got a bigger market share and their growth makes it difficult for the company to enter and compete with the experienced competitors.

Conclusion: Wendy’s Swot Analysis 

After an in-depth study of the swot analysis of Wendy’s, we’ve concluded that Wendy’s is indeed the world’s leading fast-food chain brand. The increasing cost, limited market presence, competitors, changing trends, and health issues are some of the main issues. Wendy’s should expand its market and acquire other smaller brands in order to address these issues.