CEO Bares Plans for Wendy’s CEO Business Plans




Emil Brolick, formerly of Taco Bell, is taking over Wendy’s after the death of latter’s founder. In an interview with USA Today, Brolick discussed his plans to lead the company to regain lost ground from the competition. He said that his leadership will give hope, vision and clarity to Wendy’s. Aside from their tastier and fresher food, Brolick said they have several products and surprises in the pipeline.

Brolick, 63, faces a daunting task: fixing a company with 6,600 locations worldwide that has been rudderless in an ocean of competition since its iconic founder, Dave Thomas, died nearly a decade ago. Wendy’s is hoping its new “Dave’s Hot ‘N Juicy” burger line will help turn things around.

But many say Wendy’s (WEN) can’t hold a candle to McDonald’s, which grabbed the new-product creativity mantle from Wendy’s years ago. And after churning through a handful of CEOs over the past dozen years, the burning question is: Will this one stick? Brolick, who worked at Wendy’s before leaving years ago to become president at rival Taco Bell and then COO at Taco Bell parent Yum Brands, must stand today before 3,000 Wendy’s franchisees gathered in Las Vegas for their annual convention, and convince them that he’s the right guy. This interview is edited for length and clarity.

Q: Got a formula for success?
A. I have a simple formula: Have a vision, a strategy, define reality, give hope and execute. A leader has to bring a vision to an organization, because an organization works best when you have an end in mind. Vision is great, but if you don’t have strategies, people get frustrated quickly. A leader has to define reality and give hope.

Q: Wendy’s has been all over the map — like it doesn’t know what it wants to be when it grows up. What do you want Wendy’s to be?
A: Wendy’s has always held a position I’ll call “a cut above.” That’s the natural position for this brand. That’s the position we’ll return to. In Wendy’s heyday, we beat to a different drummer. When the competition zigged, we zagged. We have to focus more on looking out the windshield than the rearview mirror.

Q: What is Wendy’s biggest problem, and how will you solve it?
A: The brand vision has not been there. There have been various versions, but it keeps changing. The consumer senses that this is a brand that lacks clarity. Consumers like brands with clear positions. That’s what I intend to do.

Q: What is Wendy’s most lasting imprint on American culture?
A: Fresh beef, never frozen. And the square burger.

Q: What outside-the-box changes do you propose to make at Wendy’s?
A: We have a pipeline of new products we’re just beginning to test. This could include unique bread carriers and unique preparation methods.

Q: McDonald’s is modernizing its U.S stores to look more like Starbucks. What about Wendy’s?
A: We have to reinvent our restaurant base to maintain relevance. Most people refer to this kind of design as “fast casual” — found at Panera Bread and Chipotle. Consumers want more of this. We will test these new designs at two locations each in Columbus, Phoenix, Pittsburgh, Virginia Beach and Toronto. These are brighter, fresher restaurants with more wood surfaces, soft seating in some areas and fireplaces.

Q: How did Wendy’s fall so far behind McDonald’s?
A: At one point, Wendy’s had a significant advantage over everyone. We had the best-tasting burgers, best salads and best chicken sandwich. This whole idea of being a “cut above” wasn’t some imaginary slogan, but real in the minds of consumers. For whatever reason, the brand got away from maintaining that advantage. We allowed our competitor to get back in the game and close the gap. We’ve got to regain that advantage in a way that consumers can see.

Q: What does Wendy’s do better than McDonald’s right now?
A: Our food is far superior. We do a much better job of giving consumers options and choices. Our food is fresher. Our beef is never frozen. We use leaf lettuce. Our tomatoes are cut in the stores. We don’t use pre-cooked bacon. And our food labels are much cleaner. The pork sausage we are testing at breakfast has about five ingredients. But “Brand X” has 14 or 15 ingredients in its pork sausage.

Q: You’re the sixth CEO at Wendy’s since 1995. Why should anyone think you’ll stick?
A: My track record speaks to a record of success. Consumers are waiting for someone to sprinkle pixie dust on the brand.

Q: Do you claim to have that pixie dust?
A: I do. But it’s not really pixie dust. It’s vision, strategy, people and execution.

Q: You racked up five years of same-store sales growth at Taco Bell, but how can you repeat this at Wendy’s, which struggles to post even two positive quarters in a row?
A: The key is to take our franchise partners along with us, who own 80% of our restaurants. The more enthusiastic they are about the brand, the more excited they’ll be about bringing the brand to life.

Q: What’s Wendy’s got riding on Dave’s Hot ‘N Juicy burger?
A: Consumers were telling us that our burgers weren’t hot, juicy and great tasting. The team recognized that we had to take the standard up on burgers. For any brand, you have to have something that becomes your signature. Hot ‘N Juicy is that for Wendy’s.

Q: What makes it so juicy?
A: We grind it differently. And we cook it in a double-sided grill that seals in the juice.

Q: Wendy’s kids meals have always been pretty boring. Got plans to fix that?
A: I look at it as a “family strategy,” as opposed to just kids meals. We want to make sure we’re providing children with healthful options so that moms and dads feel good about bringing their children to Wendy’s. You’ll see more clarity on this within the next year.

Q: Wendy’s marketing has been a mishmash of messages for several years. What’s next?
A: When we look at the “Get Real” message, we sense the consumer has no clear indication of the benefit. We need a sharper translation of that idea. We’re in the right ZIP code, but not at the right address.

Q: Wendy’s iconic “Where’s the Beef” slogan recently showed up in a Hot ‘N Juicy ad. Is it back for good?
A. No. There’s a tremendous heritage in that idea. We thought it was the perfect time to bring it back.

Q: Wendy’s doesn’t have many stores outside North America. Is that going to change?
A: We just signed an agreement in Japan — which we had exited, but we’re going back. We’re looking for the right way to enter the China market.

Photo by logoboy95

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