Tag: wendy’s

  • IHOP makes waves with name-change mystery

    IHOP makes waves with name-change mystery

    US-headquartered pancake restaurant Ihop drew a massive social media backlash after announcing it was changing its brand to Ihob – with the b for burgers.

    But the Ihop name change turned out to be a publicity stunt – to try to share the message amongst the ranks of American fast-food fans that the ubiquitous chain was just as good at making burgers as its trademark, calorie-laden pancakes.

    So while the company had to fend off thousands of criticisms from its customers – most of whom failed to read the small print in the announcement that it was a “temporary” change – the subsequent publicity ensured there will be few people across America this morning who don’t know that Ihop – or Ihob – serves burgers as well as pancakes.

    “@IHOb the b stands for blasphemy,” tweeted one dismayed customer. Another said it stood for “international house of betrayal”.

    “The world is spiraling out of control and I can’t understand why IHOP would force us to deal with more unwelcome change,” said another. And yet another: “Why is ihop going thru a mid life crisis.”

    Rival chains climbed on the bandwagon with some good-natured jibes, as well:

    “Not really afraid of the burgers from a place that decided pancakes were too hard,” tweeted Wendy’s.

    And Whataburger tweeted: “As much as we love our pancakes, we’d never change our name to Whatapancake”.

    Guessing game

    Prior to the Ihop name change the company held an online survey, teasing the new Ihob name and inviting people to guess what the b stood for. More than 30,000 people guessed words ranging from bananas to bacon, brunch to breakfast.

    After the furore, Ihop president Darren Rebelez told CNN (yes, he go onto CNN – that’s how successful this PR stunt was!) the company will always be named Ihop, “but we want to convey that we are taking our burgers as seriously as our pancakes”.

    “Burgers are a quintessential, American menu item so it makes perfect sense that Ihop … would go over the top to create a delicious lineup of quality burgers,” added Nevielle Panthaky, the chain’s “culinary chief”.

    Ihop, which turned 60 this year, has nearly 1800 locations across the US, including a flagship in Hollywood, California, which was converted into an Ihob for yesterday’s brand launch party.

    Unsurprisingly, marketing experts were heaping praise on Ihop.

    “Credit to IHOP: They’re garnering more media attention than the moon landing for adding seven hamburgers to their menu,” wrote Kevinwxgg in a tweet, quoted by the Washington Post in a story headlined “IHOP’s name change is what happens when brands exploit the Internet outrage cycle”.

  • Wendy’s Opens 500th International Restaurant

    Wendy’s Opens 500th International Restaurant

    Burger chain Wendy’s has opened its 500th international restaurant, in Guatemala City in partnership with its local franchisee Alimentos Corporativos Coralsa.(ACC)

    It is the 13th restaurant to open in Guatemala, where it appointed ACC in 2015.

    Wendy’s has ramped up its international expansion program, opening 60 new restaurants in the last year.

    “This is a great achievement that we attribute to the strength of our brand and partnerships with exceptional and dedicated franchisees who are committed to developing Wendy’s abroad,” said Todd Penegor, president and CEO of The Wendy’s Company.

    In Asia, Wendy’s has opened new stores in Indonesia, Japan and Malaysia in recent months.

    “We have an outstanding group of international franchise partners who play an essential role in the growth and success of our brand, and we are dedicated to helping them build strong, profitable restaurant businesses,” said Bob Wright, EVP and COO international with Wendy’s.

    “Our goal is to delight every customer in every restaurant around the world. It’s this shared commitment that has resulted in the successful growth of our international business.”

  • Wendy’s India makes debut

    Wendy’s India makes debut

    US burger chain Wendy’s has made its Indian debut this week – with the first of up to 50 stores planned over the next five years.

    Wendy’s India is a joint venture between International Market Management of England and Rollatainers of India who established Sierra Nevada Restaurants to run the business.

    The first outlet has opened in Gurgaon.

    “Sierra Nevada plans to open three more outlets in the Delhi-National Capital Region during summer and up to 20 more in Northern India over the next few years,” the statement said.

    Wendy’s India is seeking to differentiate itself from rivals like McDonald’s and KFC. Its burger pricing will start at Rs 59, while McDonald’s and KFC sell burgers from Rs 25-35 upwards.

    Sierra Nevada says it will offer customers “a casual dining experience at a quick serving restaurant price”.

    “We are starting at Rs 59 (US$0.92) because we believe that’s where quality comes in,” Wendy’s global president Darrell van Ligten told the Economic Times of India. “Competition is playing the Rs 30 game but you can’t do quality at that price.”

    The Wendy’s India menu will not include beef, instead offering 11 vegetarian products and 10 non-vegetarian, using chicken or lamb. The most expensive burger will be Rs 200 ($3.12).

    “India is a growing, dynamic market, which is attracting the attention of leading brands around the world,” Wendy’s president and CEO Emil Brolick said in a statement.

    “We’ve worked on the concept with the Wendy’s team for almost two years” one of Sierra Nevada’s directors Sanjay Chhabra added.

    Wendy’s is the world’s third largest burger chain behind McDonald’s and Burger King, with 6500 restaurants in 29 countries.

    Van Ligten told the Economic Times losing the first mover advantage by entering the Indian market behind McDonald’s and KFC had an advantage.

    “Thanks to them, we don’t have to educate Indian consumers about western QSRs.”

  • Wendy’s to sell 500 more stores to franchisees in 2015

    Wendy’s to sell 500 more stores to franchisees in 2015

    In pursuit of its goal to reduce company-operated restaurant ownership to approximately 5 percent of the total system by the middle of 2016, Wendy’s recently announced that it is planning to sell 500 additional restaurants to franchisees this year.

    The company sold 237 company-operated restaurants to franchisees in 2014, including 29 restaurants under its Canadian system optimisation initiative to sell approximately 130 restaurants by the end of the second quarter of 2015.

    “Going forward, we intend to buy and sell restaurants opportunistically to act as a catalyst for growth by further strengthening our franchisee base, driving new restaurant development and accelerating Image Activation adoption,” said President and Chief Executive Officer Emil Brolick in a statement.

    Brolick also said that reducing ownership in company-owned restaurants will result in pretax cash proceeds of approximately USD400 to USD475 million and significantly reduce future capital expenditure requirements.

    “We can achieve long-term average annual systemwide same-restaurant sales growth of approximately 2.25 to 3 percent beginning in 2016, along with our system goal for average annual unit sales volumes of USD2 million by 2020,” he added.

    As part of its brand transformation, the company also recently announced a plan to reinvest its resources to focus on consumer-facing technology, including a Common Systemwide point-of-sale system.

    It installed its POS solution in more than 2,600 restaurants and expects to have all its North America restaurants converted to the system by 2016.

    Wendy’s is a member of the Merchant Customer Exchange (MCX), a coalition of approximately 40 merchants representing nearly 80 brands, including a number of top retailers and restaurant companies in the United States, dedicated to building a customer- and merchant-friendly mobile commerce solution. Wendy’s expects to begin a pilot test of the MCX mobile wallet solution, CurrentC, in the coming months.

    “Platforms such as mobile payment, mobile ordering and loyalty programs are rapidly growing in the retail marketplace and provide potential benefits such as consumer convenience, increased transactions, higher check, faster speed of service and a seamless brand experience,” Brolick said.