The case objective was to analyze Wendy’s previous and current strategy and the accounting report to decide whether or not to add the chili on the new menu. In another word, we will test if the chili still does a large contribution to the total revenue of Wendy’s.
1. Wendy’s success is based on the combination of product differentiation, market segmentation, quality food, quick service, and reasonable prices. We will talk about each on the following:
The most important product of Wendy’s is the “old fashioned” hamburger. This is a hamburger made from fresh beef and is squared in a unique shape so as to differentiate from the others’. Wendy’s made the concept of “limited menu” that just includes four main products so as to be convenient for customers to choose the food.
Young adults and adults are the main target customers of Wendy’s when it is found. The target group is sufficient in size to merit disproportionate attention and it is growing over time. Its potential profitability is considerably greater than its size.
“Quality is our recipe” is the permanent part of Wendy’s logo. In Wendy’s, Quality not only just means the food they served but also includes the way they treated customers and employees. Wendy’s quality services range from “old fashioned” hamburger which is made from fresh beef that was cooked to order and served directly from the grill to customers, to the layout of their restaurant and franchises that is specially designed.
Dave’s initial goal is to build the first restaurant in Columbus that can get a really good hamburger without waiting 30 minutes. Wendy’s set a dining room that is designed to seat 92 customers, and a pick-up window to serve drive-thru customers in every restaurant and expand the scale continuously.
Wendy’s believe that one way for them to remain price competitive and still serve a better...