Wednesday, February 26, 2020

Will Wendy’s Breakfast Save NPC International from Bankruptcy?

When NPC International missed an interest payment in January, multiple press reports stated that it could lead to a bankruptcy filing. 
Given that NPC is the largest franchisee of Wendy’s with 385 Wendy’s locations we asked Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® if the new breakfast offering at Wendy’s would be the sales and profit builder solution to fend off bankruptcy for NPC. 
 First the Wendy’s introduction of its national breakfast launch is not until March 2, 2020.  Given that date and the competition from Burger King, McDonald’s along with Wawa, Sheetz, and 7-Eleven for the AM daypart Johnson does not think that will be the solution to NPC’s problems.
In fact, Johnson stated “this is the third attempt at rolling out breakfast at Wendy’s.  The undercurrent of competition is even greater this time around and pricing pressure along with incremental labor cost will not help this time around.”
The new breakfast menu will include the Breakfast Baconator, Honey Butter Chicken Biscuit and Frosty-ccino. Kurt Kane, Wendy’s president for the U.S. division and chief commercial officer stated, “We've crafted unique sandwiches that will leave you craving another, like the Breakfast Baconator, which features a fresh-cracked egg, signature sausage patty and six strips of Applewood smoked bacon,”
Yes, that all sounds good but this time around Wendy’s has Taco Bell, Wawa, Sheetz, McDonald’s, Burger King, 7-Eleven all prepared to battle to keep market share.  NPC Wendy’s largest franchisee results will spell the fate of the new breakfast program.  One thing is clear it had better generate top line sales and bottom line profits fast or it could become a big debacle in the mind-eye of the team at Foodservice Solutions®.
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