STEVE FARRAR CHIEF OPERATING OFFICER OF NORTH AMERICA
RECIPE TO WIN Create the best total customer experience. The Wendy’s Company
A CUT ABOVE Activating people Evolving service experience Reimaging restaurants The Wendy’s Company
The Wendy’s Company Internal Scorecards OPS IMPROVEMENT
RESTAURANT OPERATING LEVELS U.S. Company and Franchise Restaurants The Wendy’s Company 32.5% 24.8% 83.5% 0.6% 2008 2011 2008 2011 A & B LEVEL F LEVEL
The Wendy’s Company Customer Feedback OPS IMPROVEMENT
20% 25% 45% 55% 80% Minutes Hours Days Weeks Months Source: Forum Corporation Complaint Response Time vs. Customers Returning % of Customers Who Will Not Buy Again The Wendy’s Company
$1,200,000 $1,300,000 $1,400,000 $1,500,000 $1,600,000 $1,700,000 20% 30% 40% 50% 60% 70% 80% 90% 100% E S TI M A TE D ANN U A L S A L E S CUSTOMER SCORE Actual Company Restaurant Sampling High Customer Scores = High Sales The Wendy’s Company
$1,200,000 $1,300,000 $1,400,000 $1,500,000 $1,600,000 $1,700,000 20% 30% 40% 50% 60% 70% 80% 90% 100% E S TI M A TE D ANN U A L S A L E S CUSTOMER SCORE Actual Company Restaurant Sampling High Customer Scores = High Sales Each point increase results in $5,000 incremental annual sales The Wendy’s Company
“My Wendy’s” Reimages Customer Satisfaction 53% 58% 62% Not Implemented 1-3 months 12+ months Customer Scores After Implementation The Wendy’s Company
The Wendy’s Company
PEOPLE REBOOT In each Image Activation restaurant: Re-interviewed entire staff Kept only “Five-Stars”/hired exceptional new employees Changed GMs and DMs as needed The Wendy’s Company
The Wendy’s Company SUPERIOR SERVICE
Win with “Five-Star Athletes”
The Wendy’s Company IMAGE ACTIVATION
1969…Wendy’s The Wendy’s Company
TODAY…New QSRs The Wendy’s Company
TODAY…Wendy’s Outdated Designs The Wendy’s Company
TODAY…Functional, not Competitive The Wendy’s Company
TODAY…Bold, Innovative…A CUT ABOVE The Wendy’s Company
“This CAN’T be Wendy’s!” The Wendy’s Company
“This CAN’T be Wendy’s! I’m telling all my friends.” The Wendy’s Company
The Wendy’s Company
TRADITIONAL ULTRA-MODERN URBAN CONTEMPORARY
DRIVEN BY CUSTOMER EXPECTATIONS
HIGH-LEVEL RESULTS SALES UP IN ALL DAYPARTS CONSISTENTLY HIGH SALES The Wendy’s Company
HIGH-LEVEL RESULTS DINING ROOM SALES DRIVING 50% OF SALES GROWTH The Wendy’s Company
The Wendy’s Company
Manhattan In-Line Design Prototype
The Wendy’s Company Where do we go from here?
TRADITIONAL ULTRA-MODERN URBAN CONTEMPORARY
The Wendy’s Company
FINALIZING DESIGNS Validating consumer impact and sustainability of sales Optimizing cost while retaining sales-driving power Maximizing ROI The Wendy’s Company
IMAGE ACTIVATION Highest returns Lowest cost Most durable finishes Remain relevant to customers The Wendy’s Company
IMAGE ACTIVATION – 2012 All company remodels and most new builds will be new designs 50 more remodels 20 new stores The Wendy’s Company
The Wendy’s Company IMAGE ACTIVATION
The Wendy’s Company
Media Launch AVERAGE WEEKLY BREAKFAST SALES Kansas City, Phoenix, Pittsburgh The Wendy’s Company Net Gross Coupon Rate % 7/10 9/10 11/10 1/11 3/11 5/11 11/11 1/12 Anniversary Launch 7/11 9/11
GAINING FRANCHISEE SUPPORT Breakfast The Wendy’s Company CUSTOMERS OPERATIONS FINANCIAL
The Wendy’s Company Question: How would you rate breakfast at Wendy’s on the following…* Variety 9.0 Taste 9.2 Freshness 9.2 Quality 9.2 Convenience 9.3 Location 9.2 Price 9.0 Value 9.1 * Rating on a 10-point scale STRONG CONSUMER SCORES
What Makes Wendy’s Breakfast Special FRESH INGREDIENTS AND FRESH PREPARATION DIFFERENTIATED MENU OFFERINGS SANDWICHES BEVERAGES SIDES BAKERY The Wendy’s Company VALUE
STRONG FINANCIAL PERFORMANCE The Wendy’s Company Continued positive sales Focus on producing sustainable P&L for system Long-term incremental investment in marketing
The Wendy’s Company OPERATIONALLY SUCCESSFUL
The Wendy’s Company New market in Northeast Adding breakfast to company remodels and new builds 50 remodels 20 new stores Sustain long-term performance of existing test markets BREAKFAST EXPANSION – 2012
The Wendy’s Company DAYPART EXPANSION
The Wendy’s Company LATE NIGHT
24-HOUR OPERATIONS The Wendy’s Company
Founded on innovation Driven by execution The Wendy’s Company
The Wendy’s Company
The Wendy’s Company
The Wendy’s Company A CUT ABOVE ACTIVATING PEOPLE EVOLVING SERVICE EXPERIENCE REIMAGING RESTAURANTS
