Wendy’s first launched in the UK in the 1980s but left the market in 2000. More than 20 years later, it’s back for good, UK & Europe managing director Michael Clarke tells MCA – and this time, it’s got “skin in the game.”
The Ohio-based QSR chain is doing a few things differently this time around. First, it’s got company-owned restaurants in the UK.
“We can get the model right, test it, make sure it’s in a good place,” Clarke says. “We wanted to be a role model for what great operations can look like.
“You can only do that if you’ve got a company footprint.”
Second, it’s got a diversified portfolio across formats, with a combination of high street restaurants, drive-thrus, and delivery kitchens stretching from Leeds to Portsmouth.
“We’ve got good foundations to grow, and hang around forever,” Clarke adds.
Wendy’s re-launched in the UK in 2021 and now has c34 across the country spanning three revenue streams: kiosks, delivery kitchens, and drive-thrus.
While the high street stores didn’t initially open with kiosks, the chain soon discovered more than 90% of customers preferred to use them – with a significantly higher spend – and has begun to retrofit them across the estate, along with dedicated sections for delivery riders.
As for delivery kitchens, Wendy’s now has 13 and is keen to add more through its partnership with Reef, according to Clarke. It’s drive-thrus, though, that are the next big opportunity.
“We’ve had great success in the first few drive-thrus,” he says. “Our first in Brampton Hut did record daily and weekly sales for the UK. Then, our second in Colchester broke records, and so did our third in Peterborough.”
The chain has four drive-thrus, with another soon to open in Hull and a few more in 2024, but is aiming for an asset mix split 50-50 between drive-thrus and high streets.
“Breakfast is more accessible in drive-thrus, but for other day parts, sales [between different formats] really depend on the location of the high street store.
“They’re hard to come by, with other QSRs also looking to increase their drive-thru estate, and it takes 18-24 months to get them across the line, but they’re great in terms of accessibility. The local communities seem to be loving it.”
Wendy’s sees breakfast as an important revenue stream and is considering extending trading hours based on location to expand further into the late night day part.
It is also actively looking for franchisees to expand further in the UK as well as into other European markets.
“All our franchisees are encouraged by the start they’ve had and increased their development agreements,” Clarke says. “We’re aggressively looking to open as many sites as we can.
“We see the UK as a foot into Europe…Spain and Ireland are two markets we have our eye on.”
As for the offer, the most popular item continues to be the Baconator – the double cheeseburger with bacon – but Wendy’s prides itself on providing differentiation in the form of items like loaded fries, bacon, egg, and cheese croissants, and Frosty desserts.
The next year will see significant menu innovation, with the launch of wraps, the Frostyccino – an iced coffee dessert – and the expansion of the junior menu and ‘biggie’ meal deals, designed as an “abundant, affordable” offering.
The chain is also working on adding to its vegetarian offer, which currently comprises the curry bean burger.
“We’re all about quality, so we want to stay away from processed meat. There are whole vegetables in the curry bean burger.”
Wendy’s looks to further innovate in the chicken and beef categories as well, but the goal is to ensure differentiation.
“I don’t think we’ll go out there and say any other business is our competitor,” Clarke adds. “If you’re measuring yourself up to others, the danger is offering the same things as everybody else.”
So far, the UK has gone “above and beyond” where the business expect it to be at the time of launch, he says.
“You don’t sign franchisees unless you’ve got something to offer.
“The UK public has been overwhelmingly positive. We want to stay focused in our lane and true to our mission.”
