In a sweeping move to revitalize its brand and streamline operations, Wendy’s has announced plans to shutter between 200 and 350 underperforming restaurants across the United States by the end of 2025. This new wave of closures follows the shutdown of 240 locations in 2024, marking a significant contraction for the 55-year-old fast food chain.
Strategic Shift Under “Project Fresh”
The closures are part of Wendy’s newly launched initiative called “Project Fresh,” a comprehensive strategic plan aimed at boosting profitability and modernizing the customer experience. Interim CEO Ken Cook emphasized that the decision targets “consistently underperforming” outlets that have been dragging down the brand’s overall performance. “These actions will strengthen the system and enable franchisees to invest more capital and resources in their stronger locations,” Cook said during a recent earnings call.
The company currently operates around 6,000 U.S. locations, and the planned closures represent a “mid single-digit percentage” of its domestic footprint. The affected restaurants are expected to be phased out gradually over the next several months, with some closures already underway.
Why Wendy’s Is Downsizing
Several factors have contributed to Wendy’s decision to scale back:
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Sluggish sales growth: Despite efforts to innovate its menu and digital platforms, Wendy’s has faced challenges in maintaining strong sales across all regions.
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Consumer pushback on pricing: Rising menu prices have led to decreased customer traffic in certain markets, particularly in economically sensitive areas.
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Operational inefficiencies: Older locations with outdated infrastructure have struggled to meet modern service expectations, prompting the company to prioritize reinvestment in newer, more efficient outlets.
Cook noted that the closures are expected to boost sales and profitability at nearby locations, as resources and customer traffic are consolidated into better-performing stores.
Franchisee Impact and Future Plans
Wendy’s is working closely with its franchisees to manage the transition, offering support for reallocation of staff and potential reinvestment opportunities. While some franchisees may face financial strain due to the closures, the company believes the long-term benefits will outweigh the short-term disruptions.
Looking ahead, Wendy’s plans to focus on digital innovation, menu upgrades, and store redesigns as part of its broader turnaround strategy. “Project Fresh” includes investments in mobile ordering, delivery partnerships, and sustainability initiatives to appeal to younger, tech-savvy consumers.
Industry Context
Wendy’s is not alone in its restructuring efforts. The fast food industry has seen similar moves from competitors like Burger King and Subway, both of which have closed hundreds of locations in recent years to optimize their networks. Analysts suggest that Wendy’s aggressive downsizing could position it for a leaner, more profitable future—if executed effectively.
As the closures unfold, customers in affected areas may see their local Wendy’s disappear, but the company hopes that improved service and offerings at remaining locations will help retain loyalty and drive growth.
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