Thursday, April 8, 2021

Wendy’s Price Drives Frequency and Brand Adoption

 


Yes, the line between restaurants and food retailers continues to grow even ever thinner. The fight for America's food dollars and share of stomach continues to intensify.  Today, consumers can find fresh prepared Ready-2-Eat and Heat-N-Eat fresh food options at a wide and growing array of outlets across every channel: convenience stores, chain drug stores, restaurants, grocery stores, club stores, vending, gas stations, and dollar stores and Wendy’s wants to win.

Most food manufacturers, retailers, and restaurants worry about choice overload, consumers have embraced their new meal choices. The restaurant industry is slow to innovate according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Johnson stated, typically the larger the chain, the slower they move to adopt something compared to a smaller chain or independent restaurant. The goal of chain restaurants is simple—to feed one meal at a time in the restaurant while protecting and edifying the brand.”

Consumers are dynamic not static so, historically, chain restaurant leaders have denied the credibility of start-up competitors as irrelevant. The pizza sector is a great example; evolving from family dining independents to a national chain of "Red Roof" Italian, then to delivery-only outlets.

However, it is at the intersection of the consumer, freshly prepared food, and technology we find that consumer eating behavior is now beyond the control of traditional food marketers. Evolving culture, lifestyle, demographics, and uncertain economy all put pressure on the American food consumer: Demands of work, economic shrinkage, raising a family, commuting, social interaction, kid's after-school activities, all contribute to a food marketplace where convenience vies with price.

 


Today, restaurateurs need to be particularly mindful of developments within grocerant niche for they are driving the change within the price, value, service equilibrium in retail foodservice and how and where consumers find meals and meal components. Here is Foodservice Solutions® current formula: 

 

(Mobile Access +Social Media + Digital Payments + Delivery) X (Price +Food Quality + Speed) = Value 

 

From Incremental Value:  Constantly Changing Menu (Seasonally / Sustainability with Credibility) 

 

Focusing on value, Wendy's is bringing back the Bacon Double Stack as part of the $5 Biggie Bag. The bag includes the Bacon Double Stack, four-piece chicken nuggets (Spicy or Crispy), small fries, and a small drink. That is an interactive, participatory meal comprised of valued meal components.

Consumers can order online, via the Wendy's mobile app or head to their nearest Wendy's restaurant to #SecureTheBag. They can also download the Wendy's app so you don't miss out on future major bag alerts and earn free Wendy's with Wendy's Rewards.  Focusing on meals and meal component’s is a touchpoint no food retailer can forget. Value drives brand frequency, which in turn drives incremental value.  

Looking for success clues of your own? Foodservice Solutions® specializes in outsourced food marketing and business development ideations. We can help you identify, quantify and qualify additional food retail segment opportunities, technology, or a new menu product segment.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter

Battle for Share of Stomach



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