Hamburger and Wendy Essay

Introduction Wendy’s International (Wendy’s) is a restaurant company, which operates globally under Wendy’s brand of restaurant chain stores. The company’s headquarter is in Ohio, United States. Wendy’s was founded by Dave Thomas who opened the first Wendy’s restaurant on November 15, 1969 in Columbus, Ohio, United States. In 1972, the first Wendy’s franchise was sold. Wendy’s also stressed Wendy’s superiority through the â€Å"Quality Is Our Recipe† slogan and featured a red-haired, pig-tailed â€Å"Wendy† with dancing hamburgers. In mid-1975 Wendy’s opened its first international restaurant which located in Canada. In 1976, Wendy’s offered public stock with one million common shares sold at $28 per share. In November 15, 2009, Wendy’s celebrated its 40th year anniversary with more than 6,600 Wendy’s restaurant worldwide. Mission Statement â€Å"What We Believe† guidelines, which serve as both an internal mission statement and an external customer service goal, which include quality is our recipe, treat everyone with respect, do the right thing, profit means growth, and give something back. Vision. To continuously grow stakeholder value by leveraging the strengths of vibrant, independent restaurant brands. Products and Stores Old Fashion Hamburger Chicken and Wraps Garden Sensations Salads Fries and Sides Frosty Beverages Kids’ meal Wendy’s Restaurant Wendy’s SWOT Analysis Wendy’s is a leading successful restaurant operating and franchising company in North America. The company was ranked 562nd in the list of America’s largest corporation, as evaluated by the Fortune magazine, in 2007. A strong market position provides better visibility and increases the company’s bargaining power. However, Wendy’s faces strong competition from international, national, regional, and local retailers of food products. Competitors could affect to Wendy’s market share and its margins. STRENGTHS – Leading player in the U. S. – Market research strength – Strong management team – Effective advertising – Brand recognition WEAKNESSES – Fried food – Distribution problem – Weak research and development OPPORTUNITIES – Global expansion – Franchising Argentina, Chile, China – Mass customization THREATS – Strong competition such as McDonald and Burger King – Political environment. – Exchange rate – Health conscious consumer – Recession in economy worldwide . Analysis of Wendy’s Globalization Strategy There are more than 6,500 Wendy’s restaurants currently in 26 countries worldwide (Appendix B). Since early 2009, the company is very alert for international expansion of Wendy’s with new restaurant development in Singapore, the Middle East and North Africa, the Russian Federation, the Eastern Caribbean, Argentina, the Philippines and Japan. The company’s target is to open more than 8,000 Wendy’s restaurants outside of North America. New market expansion and further development within existing markets will continue to be major drivers of Wendy’s worldwide strategy. By maintaining superior quality, freshness, and operational standards worldwide, the customers could taste the quality Wendy’s hamburgers whether they visit Wendy’s in Dubai, Moscow, or Puerto Rico. In 2010 and 2011, Wendy’s was recognized by Zagat Survey as the food quality leader in the United States quick service restaurant industry, and also received their Top Overall designation. Wendy’s is also been awarded by the international organization. For example, in New Zealand Wendy’s has been voted as having the best tasting hamburgers for over ten years in a row. Wendy’s, Quick Service Restaurant (QSR), has experienced both competitive and economic challenges over recent years. However, the global QSR business has continued to grow significantly especially in emerging markets. According to Euro monitor International, this trend of category growth is expected to continue as show in Appendix C. According to the graph in Appendix C, the sales from previous year to future are a positive trend. In 2005, the global QSR sales were $376 billion and in 2010, it lifted up to $549 billion. The QSR sales in 2013 are forecasted that it could rise to $611 billion and it could go up to $678 billion in 2015. Franchising as Global Expansion Wendy’s provide new franchisees with the training and tools to run a Wendy’s restaurant. The franchisees will benefit from an image of leading brand in the quick service restaurant industry. Wendy’s provides support to its international franchisees through international corporate headquarters in Atlanta, and regional support offices in Miami and Hong Kong. The franchisees will benefit from Wendy’s expertise and ongoing support which including operations, training, marketing, engineering and site development, supply chain, quality insurance, and technology. Operations A skilled management team will help in preparing and opening the first restaurant and monitoring its progress as well as the future locations afterward. The reason of doing this is to ensuring that every restaurant in the system meets Wendy’s quality and service standards. Training The training is focused on how to exceed customer expectations and operate according to Wendy’s standards. Training will be provided for the head of operations and store managers at a regional training location. Marketing The franchisor marketing team will help franchisee maximize potential of the brand in that country market. Before the franchisees open the first restaurant, franchisor team will help to outline locally competitive aspects, identify key market opportunities, generate sales forecasts, and create a marketing plan. Franchisor will also provide an on-going support through existing marketing programs. Engineering and Site Development. When a location is selected, the engineering team will provide franchisees with guidance in developing the layouts and equipment plans. Supply chain Franchisor supply chain team will help in identifying efficient and safe suppliers. Franchisees will benefit from negotiated purchasing contracts with regional suppliers and be given support in developing a distribution system. Quality insurance The Quality Assurance team will approve new suppliers, local product adaptations and provide on-going monitoring of selected suppliers. Technology. Franchisor will help franchisees select restaurant technology tools to efficiently run and manage growing business such as manage labor costs, track food inventory, and analyze sales information. Wendy’s Strategy Map Wendy’s strategy map includes financial, customer, internal (operations), and learning and growth which Wendy’s needs to focus on to achieve its vision of growing stakeholder value and profitability can be readily identified and more easily accomplished. The strategy map presents a visual diagram and representation of the linkages among the four perspectives. Financial Perspective. Lower cost The basic instruction to lower cost is by reducing waste, improving reliability of orders, and increasing operational efficiency. This will very important considering during economic times as consumers are looking for a low cost with quality provider of food. Controlling for reducing waste, saving supplies, and ensuring ordering accuracy will allow the reduction in operational expenses and thus lower cost. Increase revenue Increasing revenue is a combination of raising prices and lower expenses. The revenue can be increased by expanding market share and penetrating the global market. Wendy’s should focus for expanding into overseas developed and emerging markets. Another way to increase revenue is to raise prices. Increase overseas expansion The building and expansion of more stores overseas, Wendy’s will not only able to help create stronger brand identity but also will allow increasing revenue through overseas stores while increasing market share. Moreover, it would be advantage to expand stores in the developed markets such as the U. K. , Canada, and Australia. It would be wiser for Wendy’s to expand operations in fast growing an emerging market such China, India, Russia and Easter Europe. Customer Perspective Lowest total price Wendy’s could provide the lowest total cost for price and value of service, which they effectively have been doing by offering comparable prices for products with superior service. Availability locations Wendy’s is currently the third largest provider of Quick Service Restaurant falling behind McDonalds and Burger King in the total number of available locations. Wendy’s can increase the number of available locations by focusing on urban and global markets to increase their presence in areas with the highest concentration of consumers which will allow them to achieve other goals of increasing revenue as well as creating stronger brand identity. High quality Wendy’s has storied past for providing high quality products. It already stood out when compared to competition. However, Wendy’s needs to continue to set high standards and organize initiatives such as always fresh ingredients and never frozen beef campaigns to ensure to customers that providing quality products. Internal Perspective (Operations) Increase operational efficiency As new technology is adopted, it is important to always stay at front of introducing and taking advantage of new technologies to increase operational efficiencies. Wendy’s can benefit over other competitors if they can develop a sense of timeliness and reliability for delivery orders. Improve reliability Other than providing the inexpensive offerings in a timely manner, what remains important is the expect reliability. Wendy’s needs to ensure that it provide a reliable product. Reduced waste As an operational perspective, reduction of waste is a huge concern. Wendy’s will have to focus on reducing waste as it has visions of becoming the lowest total cost fast-food provider. Moreover, reducing waste will allow more revenue as cutting expenses. Learning and Growth Perspective Management training programs Wendy’s currently has management programs. However, Wendy’s needs to create greater incentives for managers to attract brighter and more qualified candidates for management positions and to keep managers and hard working employees employed after training programs. Develop new products Wendy’s will need to focus on bringing out and introducing creative new products that will help stimulate excitement for their food offerings as well as take advantage of current trends towards healthier foods. Moreover, Wendy’s is suffering from poor menu diversity, thus the development of new products will help this issue. Open new stores Regarding to that Wendy’s needs to increase its total availability of location, this will allow for greater strong identity, increased revenue options, and greater penetration into capturing market share. Moreover, the opportunities as indicated in the brief SWOT analysis to create stores as a means to expand and grow. Wendy’s Enter Fast Food Market in Thailand. Fast food in Thailand continued to perform healthily during 2010 regardless of economic and political instability due to the strong financial positioning of leading chained fast food operators like CP All, YUM Restaurant International Thailand, Minor International, Central Restaurants Group, S&P Syndicated and McThai (McDonald), which accounted for 83% of fast food value sales in 2010. Although these players had to close down a number of outlets as a result of political instability in 2010, they still had sufficient cash flow to expand further, renovate existing outlets, and invest in marketing. In Thailand, there are many kinds of fast food. These are the major types of fast food industry in Thailand. First, Thai style fast foods include all main dishes of local food. Second, American style fast foods such as hamburger (number one market share), fried chicken, sausage, and bacon. The American fast foods are usually sold as a set with beverage. Third, other style fast foods such pizza, Japanese ramen (noodle), and Chinese streamed dim sum. Consumer Analysis These are some of the consumer surveys toward fast food in Thailand. – Group of age less than 20-30 is the main fast food consumer. This is because their perception toward fast food is convenient and easy to purchase. – The level of education is unaffected to fast food purchasing behavior. – Group of income less than 5000 Baht or 160 USD per month tend to consume fast food often. American Fast food already turned into world food. It is the fast growing business worldwide including Thailand. The changing of taste and lifestyle create the new trend of eating. Food for Thai people is the main factor and center of life. Since the globalization and technology entered along side with the changing of eating trend plus the creativity, the variety and development of food covered the entire nation. Thai people have obtained the Western eating behavior, thus this modern fast food has huger role in Thai people daily life. In the center area of tutor schools, the interview from two sample students says toward fast foods that â€Å"fast food is available everywhere† and â€Å"it’s the last-ditch choice†. From the center city to country side, fast food became a part of everyone which influences the growing of this western food business continually. Product Positioning Healthy Fast Food KFC Burger KingWENDY’S McDonaldSubway Marketing Mix Product Wendy’s offers fast food with reasonable price with good quality. The products are hamburger, chicken, salad, and fries. Wendy’s should emphasis on the fresh and good quality raw materials including beef, chicken, vegetable, and bread. Moreover, company need to do a product research and development in order to come out with new product which could meet with customer’s need. The term† fast food† should represent not only fast service food, but need to provide the nutrition and good for health. Price The price should be rely on the standard price of Wendy’s international and related to the local market price. In Thailand, the raw materials and labor cost are quite inexpensive, thus company could compete the price with the exiting competitors. Along with the price, company should offer the good service in order to impress the customer as a new coming. Place Wendy’s restaurant provides the eat-in service and take out which customer can buy back home. The restaurant location should locate at the general department store or business and tutor area. The store interior should be attractive with color and product photo. The other important thing is always keep the restaurant clean. Another channel is home service. Home service is a convenient for customers who unable to come to store. They can make an order through phone service. Promotion In order to get attraction from customer, Wendy’s should come out with the heavy sale support marketing activities last for about one to two months such as buy one get one free, and the souvenir. In order to remain the customers, company could offer the membership card for discount, collected point, and special event on the customer’s birthday. Conclusion Wendy’s is a fast food restaurant a chain store operates worldwide with 6,500 Wendy’s restaurants currently in 26 countries. With the global expansion strategy, the company planned to open more than 8,000 Wendy’s restaurants outside of North America. Wendy’s has awarded from variety organization worldwide as a guarantee of efficient performance such as the Zagat Survey as the food quality leader in the United States and the Top Overall designation, and the best tasting hamburgers for over ten years in a row from New Zealand. With the good performance from the exiting restaurant, it could push up and help promoting for new coming and provide an easy chance for Wendy’s to go as a global brand. Appendices Appendix A. America’s largest corporation evaluated by the Fortune magazine in 2007 Appendix B Source: Wendy’s international franchise brochure There are more than 6,500 Wendy’s restaurants currently in operation in 26 countries and territories worldwide. Since January 2009, we have aggressively laid the groundwork for international expansion of Wendy’s with new restaurant development announcements in Singapore, the Middle East and North Africa, the Russian Federation, the Eastern Caribbean, Argentina, the Philippines and Japan. We are targeting expansion to over 8,000 Wendy’s restaurants outside of North America. Appendix C. Global Quick Service Restaurant Sale (Historical – Forecast) Source: Wendy’s international franchise brochure. Bibliography http://www. aboutwendys. com/Our-Company/Our-Story/Accessed on Nov 3, 2011 http://www. aboutwendys. com/International/Support/Accessed on Nov 3, 2011 http://nyjobsource. com/wendys. htmlAccessed on Nov 3, 2011 http://retailindustry. about. com/od/retailbestpractices/ig/Company-Mission-Statements/Wendy-s-Mission-Statement. HtmAccessed on Nov 3, 2011 http://www. docshare. com/doc/189567/WendysAccessed on Nov 5, 2011 http://franchises. about. com/od/w/fr/wendys-international-franchise.htm Accessed on Nov 5, 2011 http://franchises. about. com/od/fastfoo1/fr/wendys. htmAccessed on Nov 6, 2011 http://money. cnn. com/magazines/fortune/fortune500/2007/full_list/501_600. html. 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