One Of America's Biggest Fast Food Chains Is Closing Hundreds Of Restaurants
Fast food chains, including iconic brands, have faced significant challenges recently, partly due to consumers opting for healthier choices and rising meal costs. The fast food industry has struggled over the past few years, and now one of the most popular chains in the U.S. is feeling the impact.
This year saw major headlines reflecting the industry's difficulties: Jack-in-the-Box and Starbucks announced hundreds of store closures, while KFC, Del Taco, and Pizza Hut reported declining sales. These developments follow a harsh 2024 for sit-down restaurants, with several popular chains declaring bankruptcy within months of each other.
Wendy’s Store Closures
Wendy's recently joined the growing list of chains closing locations. Interim CEO Ken Cook announced during the company’s Q3 earnings call that Wendy's plans to close a "mid single-digit percentage" of its total stores, according to CNN. With over 5,900 locations in the U.S. at the end of 2024, this suggests approximately 300 closures could be expected.
Last year, Wendy’s already closed 140 locations as part of a smaller scale retraction. Despite this, Cook remains optimistic about the brand's overall health.
"Wendy's as a whole is healthy, and a smaller percentage of underperforming stores were dragging down the brand." – Ken Cook, Wendy's Interim CEO
Plans for Improvement
The company is not only focusing on closing underperforming stores but is also investing in renovating remaining locations and integrating new technology to boost sales in its weaker markets.
Summary
Wendy’s will close around 300 underperforming locations while aiming to revitalize its brand through renovations and technology upgrades.
Author’s summary: Wendy’s responds to industry challenges by closing several hundred underperforming stores while working to modernize and strengthen its remaining restaurants.