How Wendy's Can Improve Its Position in the Fast Food Wars

Wendy's recently reported lower than expected profits, and is apparently considering putting itself up for sale as it faces tough competition in the fast food restaurant industry. The chain, which is the number 3 burger chain behind McDonald's and Burger King, seems to have floundered in the years following the death of founder Dave Thomas. If they want to recover, they're going to have to make some big changes to reclaim some ground among other chains.
There are several things that they can do.

FRESHEN UP THEIR STORES

In visiting Wendy's in several states, including a half dozen in my home state of Kentucky, there is a common theme among the restaurants, dated and dirty. It does no good to promote your food as fresh when your restaurant still looks the same as it did when it was built in the early 80's. Our local stores are all covered in a layer of dirt that can't be easily scrubbed away. The kitchens, while usually clean, look a bit like an old diner. KFC, McDonald's, and Subway have all worked hard to upgrade the look of their stores over the past five or so years, and the stores feel more pleasant and inviting because of it. People like to eat where they feel comfortable. While an old rundown building may feel quaint and cozy for a neighborhood diner, it is enough to make people walk away from a fast food joint.

Wendy's can't just add a fresh coat of paint. They should follow in the footsteps of recent McDonald's and KFC restaurants and either knock the whole thing down and rebuild or do a major overhaul of the entire inside. Add wireless internet, televisions, and make it an inviting place to eat.

REPOSITION ITSELF AND/OR CLONE DAVE THOMAS

Okay, this won't happen, but part of the success of Wendy's had to do with Dave Thomas. Despite the fact the chain was huge, Dave Thomas' image as a small business owner intent on bringing you a tasty meal helped sell the food. The restaurant was able to successfully position itself as a fast food restaurant that wasn't too big of a chain to care about quality. Since his death, the restaurant seems to have no image.

ITS ABOUT THE FOOD STUPID! OFFER UP NEW FOOD AND ADVERTISE IT!

Recent Wendy's ads have been incredibly stupid, featuring people wearing Wendy's wigs, and touting its value menu. While a value menu is certainly a selling point, it's completely contrary to what Dave Thomas was doing with his advertisements. While the ads featured Dave, they were usually showing Dave eating their latest sandwich. The ads made you want to visit Wendy's because the ads made the food look and sound good. Wendy's offered sandwiches that were unique compared to their more standardized competitors, McDonald's and Burger King. It's time for Wendy's to go back to simple ads and unique sandwiches to start bringing people into the store.

EXPAND BREAKFAST TO ALL RESTAURANTS

Wendy's started serving breakfast last year. It's time to expand this service to all restaurants. Fast food breakfast is a big money maker for restaurants, and if Wendy's can offer a bit higher quality than it's other fast food counterparts, they could start stealing business away from them.