Wendy s case study composition

Introduction: The case objective was going to analyze Wendy’s previous and current technique and the accounting report to decide whether or not to include the chili on the fresh menu. In another word, all of us will evaluation if the chili still does a large contribution to the total revenue of Wendy’s.

1 . Wendy’s accomplishment is based on the combination of product differentiation, industry segmentation, quality food, quick service, and reasonable prices. We will discuss each on the following:

Merchandise differentiation: The most important product of Wendy’s is definitely the “old fashioned hamburger.

This can be a burger made from fresh beef which is squared within a unique form so as to distinguish from the others’. Wendy’s made the concept of “limited menu that just comes with four main products in order to be hassle-free for customers to purchase food.

Industry segmentation: Adults and adults are the main target clients of Wendy’s when it is located. The target group is sufficient in proportions to value disproportionate interest and it is developing over time.

Its potential profitability is usually considerably higher than its size.

Quality food: “Quality can be our recipe is the long term part of Wendy’s logo. In Wendy’s, Quality not only just means the food that they served but also includes how they treated clients and employees. Wendy’s quality services vary from “old fashioned hamburger which is made from new beef that was cooked properly to buy and dished up directly from the grill to customers, to the layout with their restaurant and franchises that may be specially designed.

Quick service: Dave’s initial target is to build the initially restaurant in Columbus which could get a great hamburger without having to wait 30 minutes. Wendy’s set a dining room designed to seat 80 customers, and a gathering window to serve drive-thru customers in every restaurant and expand the scale continuously.

Inexpensive price points: Wendy’s assume that one way to allow them to remain price competitive and still serve a better quality item was to limit the number of menu items. For example , they conserve the supplies from making chili which can be from “well-done beef patties that could certainly not be dished up as “hot ‘n juicy old fashioned hamburgers.

2 . The Wendy’s “limited menu was launched by Mister. Thomas, the founder of Wendy’s, in early days. He decided that their menu only contains four primary products: burgers, chili, french fries, and Wendy’s Frosty Milk Dessert. By pursuing this kind of special “limited menu, Wendy’s remains the price competitive and gains above average returns. Nevertheless , with the elevating of competitive of competitive pressures and changing customer demands, Wendy’s had no other choice than to add various other foods within their menu including chicken and baked potatoes.

By studying the Wendy’s “limited menu, we think the fact that “limited menu is a double-edged sword in this company.

Benefit: It is the first step toward Wendy’s technique that differentiated Wendy’s via McDonald’s and Burger King. This increased the company’s benefit and reputation. Second, it improved the quality of products and reduced the fee due to the increasing of doing work efficiency. Moreover, it also kept customers’ time in ordering.

Downside: With the increasing of man life, there exists a growing require of merchandise variety. Even as we see it, it would hardly be considered a long term solution to serve this sort of a large amount of elevating customers. Although giving up the “limited menu may business lead the company to loss some of benefits, it really is good for company’s long term advancement.

Wendy’s aggressively introduce fresh menu to their restaurants to reply to elevating competitive demands and changing customer require in the quick-service industry. The company’ rivals had substantially improved the quality of their products, services, facilities, and menu things, so the “limited menu is usually not Wendy’s competitive benefits any more.

three or more. Wendy’s drive-thru window is somewhat more successful than their opponents has following reasons. Initial is their site selection of eating places. Wendy’s eating places were usually located in city or densely populated suv areas, and the success relied upon providing a large amount of customers. Subsequently, Wendy’s “limited menu causes it to be convenient for customers to buy. on the other side, it boosts employees’ efficiency. Option main reason for what reason Wendy’s accomplished above average earnings than other competition at the beginning.

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