How hungry is the UK for Wendy’s square burgers?

As part of the return of US burger chain Wendy’s to our shores comes the reappearance of the brand’s iconic square burgers. According to company folklore, Wendy’s founder Dave Thomas would emphasise the importance of not cutting corners – and some see that ethos reflected in the shape of its patties.

Last seen in the UK in 2001, Wendy’s relaunch in Reading in June attracted plenty of attention from the media, consumers and the competition alike. With immediate plans to open five company-owned outlets in 2021, Wendy’s hopes to open as many as 400 UK restaurants over the next few years. If the brand gets close to this target, it will put inevitable pressure on established QSR operators such as McDonald’s, Burger King and KFC.

As such, it is worth recalling Wendy’s Q1 earnings conference call back in May. There were a couple of key areas from the presentation that would have made the quick service competition in the UK sit up and pay close interest.

First, the company highlighted its strong breakfast sales, up 30% in Q1. While this sales growth has predominately occurred in its North American heartland, Wendy’s appears to have big plans for breakfast more generally and has positioned it as a central part of the company’s global growth plans. McDonald’s and other QSR operators offering a breakfast menu should take note here as Wendy’s has stated it is aiming for breakfast to represent 10% of its total sales by the end of 2022.

Serving breakfast until 11am, McDonald’s currently has limited morning competition from traditional fast food players in the UK. But with the final lifting of social distancing due to occur by July 19, and with increasing numbers of people heading back in the office, maximising breakfast sales could well become an area of focus for several QSR operators once more, reviving the pre-Covid trend of breakfast being the most dynamic of dayparts in terms of growth.

Already, coffee chains such as Costa Coffee and Starbucks have been making concerted efforts to upsell to customers and expand their breakfast offerings. The arrival of Wendy’s in the UK only increases the competition further. Currently limited to a breakfast food menu consisting largely of croissants, sandwiches and porridge, Wendy’s has said limited time offers will feature throughout the menu in future, presumably with the aim to steal customers and gain share.

The second noteworthy element from the earnings call was the focus on digital acceleration. This will be familiar territory for most operators by now, and during Q1 2021, Wendy’s states that digital sales in its international (non-US) operations reached more than 10% of total sales.

It is not just this headline figure that’s important, it is the undoubted impact that the move to digital will increasingly have on enhancing Wendy’s operations and customer service. New customer journeys such as curbside pick-up are here to stay and are likely to be introduced by Wendy’s in the UK as the company expands its repertoire of trading locations.

In addition, the increasing capture of customer data means that Wendy’s is likely to quickly learn the optimal ways to market to UK customers. The UK consumer will undoubtedly have different needs and behaviours to its North American counterpart. Learning to adapt its approach will be essential for Wendy’s long-term success in the highly competitive UK market.

Alongside well-known items such the Baconator, the Dave’s single burger and signature dessert Frosty’s, the company has adapted its local menu and introduced several UK exclusives, such as the Veggie Stack, Veggie Bites and Avocado Veggie Salad.

Along with other international QSR brands such as Popeyes, Jolliebee and Wingstop, the opening of a Wendy’s restaurant in the UK - the first step in the relaunch of a major brand in Europe - is clearly a significant moment for the fast food sector. It highlights the current strong appeal of the UK market and the increasing level of competition for incumbent players.

But while fast food clearly thrived during the Covid pandemic, are we likely to see a shift in eating habits as the economy reopens? Will people’s lockdown savings be increasingly diverted to the pub or casual dining restaurants rather than continue to be spent at their favourite QSR outlet?

For Wendy’s, a more fundamental question is whether the UK will ultimately prove to be hungrier for those iconic square burgers this time round.