Leadership Case Study

Wendy's: Can New Owner Triarc give it a Successful Makeover?

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Abstract:
Wendy's is the third-largest quick-service hamburger chain in the world after McDonald's and Burger King. It was founded on 15 November 1969 by Dave Thomas. The chain was very successful and acquired several other chains. But the death of its founder in 2002 took a toll on the company and Wendy's revenues have declined steadily since then. The company either closed or sold off all the chains that had been acquired earlier. Wendy's finally put itself up for sale and was bought by Triarc, the parent company of the Arby's fast food chain. The merger was completed on 29 September 2008 and the company was named the Wendy's / Arby's Group. The combined entity included more than 10,000 restaurants in 50 states and 21 countries worldwide. Now, it would be Triarc's responsibility to turnaround the struggling fast food chain of Wendy's. The case analyses the growth and decline of Wendy's, the rationale behind the merger and Triarc's strategy to revive the company..

Pedagogical Objectives:

• To discuss the dynamics of the US fast food market.
• To identify and analyse the reasons for Wendy's decline.
• To evaluate Triarc's strategy to turnaround the company with renewed focus on its strategic businesses and its marketing initiatives.

Keywords :  Wendy's, Triarc, McDonald's, Burger King, Restaurant, Arby's, Advertising, Marketing, Merger, Fast food