Wendy’s is set to close more than a hundred underperforming locations across the United States as part of a broader plan to revamp its restaurant footprint.
Why Is Wendy’s Closing Several Locations?
During Wendy’s third-quarter earnings call last month, Kirk Tanner, the company’s President and Chief Executive Officer, announced that the fast-food chain is “doubling down on operational excellence” in the coming months, and part of its plan to ensure customers receive the same quality of experience at every Wendy’s restaurant includes the decision to close restaurants this year that are “outdated and located in underperforming trade areas.”
Wendy’s plans to shutter 140 locations across the U.S. by the end of the year to make room for newer restaurants “at better locations with significantly improved sales and profitability.” To make up for the closures, the chain plans to open 250 to 300 new restaurants.
“We anticipate that total closures in 2024, including additional closures in the fourth quarter will be offset by new restaurant openings this year, leaving our net unit growth approximately flat compared to the prior year,” shared Tanner. “By the end of 2024, we will have opened more than 500 new restaurants over the last two years and have the confidence we will deliver an elevated growth in 2025 and the years to come.”
Wendy’s has yet to release the complete list of locations that will be affected by the closures.
As of this writing, Wendy’s operates around 7000 restaurant locations around the globe.
Wendy’s Remains Committed to Customer Satisfaction and Menu Innovation
As Wendy’s moves forward with plans to close 140 locations, the chain made it clear that customer satisfaction remains a top priority for the brand. “As we look ahead, we are focused on continuing to build love for Wendy’s by delivering on our new brand promise: fresh, famous food made right for you every time in every restaurant for every customer every day,” said Tanner during the call.
Despite the closures, Wendy’s remains focused on menu innovation. The recent popularity of limited-edition items like the “Krabby Patty Kollab Burger” and “Pineapple Under the Sea Frosty” has fueled excitement among fans, with the chain set to introduce more unique flavors in the future, including a new salted caramel Frosty and the returning Mushroom Bacon Cheeseburger.
Store Closures in the Restaurant Industry
Wendy’s is the latest restaurant chain to announce massive store closures in recent years. TGI Fridays has closed down at least 85 locations in the U.S. this year due to underperformance and as part of its strategic plan to ensure the brand’s long-term viability. Meanwhile, the number of Pizza Hut locations has declined since 2020.