U
WENDY'S CHILI
In January 1979,the management of Wendy's International, Inc., a relatively young and rapidly growing quick-service restaurant chain, was considering adding a salad bar to its menu.
Because Wendy's "limited menu" concept was one of the factors that had contributed to the
Company's remarkable success, management felt that consideration should also be given to the desirability of dropping one of the existing products from the menu if the decision regarding the introduction of the salad bar turned out to be favorable. Of Wendy's four basic products, chili seemed to be the most likely candidate. In addition to being the menu "maverick," chili contributed the least to total restaurant …show more content…
The Company and Its Products
Wendy's Intemational, Inc. was founded in Columbus, Ohio, in 1969 by Mr. R. David
Thomas. Prior to that time, Mr. Thomas had purchased an unprofitable Kentucky Fried Chicken franchise in the Columbus area, turned it around, and subsequently sold it back to Kentucky Fried
Chicken at a substantial profit. He then became a co-founder of Arthur Treacher's Fish & Chips. So at the time he founded Wendy's, Mr. Thomas was no stranger to the quick-service food industry.
Although he had been involved with businesses specializing in chicken and fish, Mr.
Thomas's favorite food was hamburgers, and he frequently complained that there was no place in
Columbus to get a really good hamburger without waiting thirty minutes or more. Someone finally suggested (whether in earnest or in jest was debatable) that he get into the hamburger business and make his own. After thinking it over, that's just what he did, and he named his new Company after his eight-year-old daughter, Wendy. His goal was to provide consumers with bigger and better hamburgers that were cooked to order, served quickly, and reasonably priced. By offering what …show more content…
Wendy's french fries were prepared from high quality potatoes and were cut slightly longer and thicker than those served by most other fast-food hamburger chains. The Company used specialized fryers designed to cook the inside of these bigger potatoes without burning the outside.
Wendy's Frosty Dairy Dessert was a blend of vanilla and chocolate flavors that was too thick to drink through a straw. It was served with a spoon to be eaten as a dessert, but some customers ordered a Frosty in place of a soft drink. Whether served as a dessert or as a dairy drink, the Frosty was a distinctive and popular menu item.
Growth
The first Wendy's restaurant opened in Columbus, Ohio, in November 1969. The second
Wendy's opened in 1970, restaurants three and four opened in 1971, and restaurants five, six, and seven opened in 1972. In addition to these seven Company-operated stores, two franchised restaurants were openedin1972. As shown in Table l, a substantial increase occurred in the number ofWendy's restaurants opened between 1973 and1978,the majority ofwhich were franchised units.
F' -J- IJVA-C-O871
Table I
Number of Restaurants in Operation r973-1978 1973_
I7
l5
32
r97 4
46