Wendy's

Canadian Marketing Case

1. Wendy’s Restaurants

Corporate Profile

Wendy’s is the third largest quick-serve hamburger chain in the world, with more than 6,600 restaurants (80% of them franchised). It claims to serve the best hamburgers in the business made with fresh beef hot-off-the-grill and a choice of toppings. They also serve chicken sandwiches, fries, Frostys, soft drinks, and a variety of fresh healthful foods—salads, grilled chicken sandwiches, baked potatoes and chili.

Wendy’s International is a subsidiary of Wendy’s/Arby’s Group. The majority of its franchises are located in North America. In fiscal year 2006, the company had $9.4 billion (USD) in total sales. While Wendy’s sets standards for exterior store appearance, food quality and menu, individual owners have control over hours of operation, interior décor, pricing and staff uniforms and wages.

Canadian Market and Market Share

Depending on how the quick-serve restaurant market is segmented, Wendy’s market share can be expressed several ways. Among hamburger chains in Canada, McDonald’s is the clear leader with a 50% market share. Both A&W and Wendy’s are tied for second at 12% market share (2003). The revival of the Papa Burger and other menu items from the past has helped rejuvenate A&W in Canada. Burger King follows with about 10% market share.

Not considered in these market share figures are competitors in other segments of the quick serve restaurant market. In this category are chains such as Cara Operations (Swiss Chalet and Harvey’s), Priszm Income Fund (KFC, Pizza Hut and Taco Bell), and Subway, all of which have more market share than Wendy’s. If these chains are included Wendy’s share of market drops to about 5.5% of the overall market.

Presently, Wendy’s is rated highly as a popular place to get fast food. Generally speaking Wendy’s was first to offer healthier food items which were particularly popular with female customers and they were the first company to offer a...