Company Background Wendys opened in November 1969. The founder, Dave Thomas chose the name Wendys after his daughter and his goal was to give his customers fast, hearty food, in a family setting. The first Wendys was opened in Columbus, Ohio and a year later they opened another, also in Columbus. By 1976 there were 500 Wendys opened and in 1977 they made their first TV commercial. In October 2012 Wendys had a brand transformation to improve customer experience, this included engaging advertising and digital, bold restaurant design, and product innovation.
Competitors Wendy’s largest competitor is McDonald’s because of the similarity in the kinds of fast food they sell. Competing with the largest fast-food restaurant in America is a difficult task, so Wendy’s remains #2 to McDonald’s. They also strongly compete with Burger King but are still ranked ahead of them.
SWOT Strengths: ● Quality of fast food. Wendy’s is viewed as healthier than most fast food joints. “Fresh, never frozen beef” ● Popular deals (select 4 items for $4, Frostys, etc.) ● Very strong social media presence, especially on Twitter (3.3 million followers). ● Strong focus on Millenials Weaknesses: ● Generally more pricey than other fast food joints, despite a couple of popular deals ● “Fast food” is perceived as unhealthy ● Fewer locations in the U.S. compared to top competitors Opportunities: ● Delivery services (DoorDash, Grubhub, Uber Eats) ● Celebrity engagement, especially rappers like Kendrick Lamar and Snoop Dogg that helped them make “We Beefin?” Threats: ● Competitors: ○ McDonald’s ○ Burger King ○ Taco Bell ● People being more conscious of their health and avoiding fast food ● Social media presences can be destroyed quickly
Current Situation
Wendy’s decided that they wanted to find a creative way to reach and engage with a new demographic which was “18-34 year-olds paying to avoid advertising”. They created their own Spotify channel to release music that would reach their target audience while maintaining their brand identity of being sassy and clever. Wendy’s created an album called “Webeefin?” that included five hip-hop songs calling out their competitors. It was meant to resemble a diss track and go along with Wendy’s social media presence which has been known for causing “Twitter beef.” The company dropped the album unexpectedly by releasing it with one simple tweet. The results were amazing. Listeners generated 3.6 million streams, and the album managed to reach #3 on iTunes hip hop charts, and #1 on Spotify’s Viral 50 in the U.S.
Discussion Questions
What do you think about a fast food restaurant creating music? Why?
How do you think Wendy’s could differentiate themselves from their competitors, Burger King, Taco Bell, and Mcdonalds?
Are Wendy’s songs catchy? Would these songs have caused you to go to Wendy’s instead of a competitor?
What food advertisements stand out to you as a consumer? Would a simple tv commercial describing Wendy’s food have been more effective?
Would continuing making music be a good idea for Wendy’s? Is this a one-hit-wonder scenario? Is it intruding on people who pay to not see ads?
Conclusion Their goal was to blur the lines between entertainment and advertising in order to appeal to their target audience in a way they could connect with. The mixtape set them apart from other fast-food hamburger chains and resulted in their social media engagement drastically increasing.