Last year, Wendy's closed 140 of their stores across the United States. At the time, they noted how those locations were underperforming and that by moving on from them, it would strengthen the company's overall success. According to CNN, Wendy's has made the decision to undergo another round of closures.
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Interim CEO Ken Cook made the announcement on Friday, Nov. 7, noting that a "mid single-digit percentage" of stores would be facing closure. CNN reported that Wendy's plans to close between 250 and 300 of its roughly 6,000 U.S. locations.
"These actions will strengthen the system and enable franchisees to invest more capital and resources in their remaining restaurants," Cook said. "Closures of underperforming units are expected to boost sales and profitability at nearby locations."
As the cost of living continues to rise faster than salaries, eating out at fast-food establishments is becoming a luxury that many are choosing to avoid. Furthermore, there's a stronger focus on health and fitness now, which is likely impacting sales, and that's before we discuss the level of compeition from both mainstream chains and family-owned businesses.
Wendy's Is Expanding Its Presence in England
Wendy's has had a minimal presence in the English fast-food market for decades. They opened their first London-based store in 1980. However, it's only been recently that the company has begun to expand. The company now has 49 locations throughout England, with its 50th on the way.
The fast-food giant reportedly plans to open its 51st store at the West Midlands mall "Merry Hill," which gained fame after "The Amazing World of Gumball"
based its "Elmore Mall" on the shopping center.As Wendy's is cutting costs in the US, it's aggressively securing a foothold in another major market. Long-term, that should help secure the future of the company, and likely jobs in both countries, as the portfolio will grow deeper and more profitable.
Nevertheless, this round of closures will result in job losses, and with back-to-back years of cuts, there will undoubtedly be fears that more are to come.
