**United States:** Wendy’s plans to boost restaurant traffic with value-focused promotions like Frosty Fusions and tech upgrades including AI order-taking and a Palantir-powered supply chain digital twin, aiming to tackle a 2.1% sales decline amid shifting consumer spending and economic pressures.
Fast food chain Wendy’s has signaled a strategic shift in response to the increasing financial pressures felt by consumers, anticipating a challenging economic landscape for the remainder of the year. Following a reported decline of 2.1% in same-store sales, the company is now focusing on value-driven offerings to attract diners, according to a report from Nation’s Restaurant News on May 2.
In an earnings call, Wendy’s CEO Kirk Tanner shared an optimistic view of the company’s future activities. “We like the second half of the year for the activity that we have,” Tanner stated, hinting at upcoming initiatives including the launch of Frosty Fusions, a collaboration with Takis snacks, and a promotional campaign titled “100 Days of Summer.”
Tanner elaborated on the company’s strategy, saying, “I think it reflects the balanced approach of getting after the customer and solving customer issues and opportunities.” He emphasised the importance of driving foot traffic into restaurants, suggesting that these new offerings would help foster customer engagement and increase popularity.
These developments come against a backdrop of changing consumer spending habits. Recent earnings reports from companies such as Block indicate that Americans are increasingly prioritising essentials as financial constraints mount. This trend underscores the necessity for Wendy’s to adapt its offerings to stay relevant and competitive in the fast-food market.
In addition to value offerings, Wendy’s is making significant investments in technology to enhance the customer experience. Tanner highlighted several tech initiatives, stating, “From enhancing our mobile app and scaling our loyalty program to implementing digital menu boards and Fresh AI order-taking, we are making technology an integral element of our strategy to deliver a seamless, physical and digital experience.”
A significant aspect of these technological upgrades is Wendy’s collaboration with Palantir, aimed at refining its supply chain operations. The partnership has resulted in the development of a digital twin of the company’s supply chain network, allowing for real-time tracking across various transportation modes, including trucks, railcars, ships, and barges. This system connects Wendy’s to 60 main partners, over 250 shipping points, and 34 distribution centres, facilitating coordination with its 6,450 restaurants in the U.S. and Canada.
Anita Beveridge-Raffo, lead deployment strategist at Palantir, explained that this digital twin can promptly inform Wendy’s about potential supply shortages. For instance, when the system detected a network-wide shortage of 10,200 cases of syrup used for soft drinks, it swiftly identified 8,300 cases available at alternative distribution locations. Previously, addressing such a shortage would have required extensive communication efforts from multiple staff members over an entire day; now, the company resolves these issues in a fraction of the time.
As Wendy’s positions itself for the remainder of the year, the focus on value and technological enhancements reflects its commitment to navigating an evolving market landscape while aiming to meet changing consumer demands.
Source: Noah Wire Services
