Wendy's New Prototypes Revive Sales
DUBLIN, Ohio -- Wendy's CEO Emil Brolick's vision for the future has turned out to be crystal clear; during the fast food chain's Aug. 9 second-quarter earnings call, Brolick stated that the company's reimaged prototype stores have helped lift overall same-store sales in North America by 3.2 percent, according to a QSR Magazine report.
The Dublin, Ohio-based chain's 10 prototype restaurants opened in 2011 and sustained an average sales lift greater than 25 percent, with the first prototypes seeing sustained increases for 12 months, Brolick said. He added that Wendy's expects to reimage 50 company stores and construct an additional 17 stores with the new image this year.
The first franchised reimaged store opened last month in Hershey, Pa., last month, and Brolick labeled its initial sales figures "outstanding." Wendy's also opened a new company store in Oren, Utah, with an urban design. Both stores showed significant initial sales increases, he added.
The company has also seen positive early reaction to the July 16 launch of its mobile app that allows users to set target calorie levels and view meal choices that meet those levels. "We've seen impressive results," said Brolick.
Brolick noted that customer service indicators rose significantly over 2011 levels during the quarter, bringing in an additional $46,000 in sales per restaurant for every 10 points of improvement. Wendy's also purchased 30 franchised stores in Austin, Texas, during the quarter.
The company expects to build approximately 20 new reimaged company stores, and Wendy's North American franchisees plan to open another 40, according to the report. Wendy's long-term goal is reportedly to slightly lower its number of company-owned locations.