Wendy’s wants the QSR super fans.
These customers visit fast-food restaurants nearly 130 times per year—two to three times per week—and Wendy’s gets about 20 of those occasions.
“That’s good, but that’s not enough,” said CMO Lindsay Radkoski during Wendy’s Investor Day on Thursday. “We need to win and we have a right to win more of those visits with these customers who are already in the category.”
To give itself a leg up, the company developed a proprietary consumer model to understand the motivation behind customer choices. It focuses on opportunity identification and prioritization, initiative development and enhancing programs before they’re brought to market, and continuous measurement and learning across consumer groups.
“This new model has enabled us to get laser-focused on designing Wendy’s menu of the future, and we are positioned to deliver on that menu in a way that only Wendy’s can,” Radkoski said.
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Wendy’s is targeting three customer categories—families, multicultural customers, and Gen Z. The first makes up 35 percent of QSR traffic and comes with higher average checks. Additionally, the brand wants to engage more with Hispanic guests, who represent 23 percent of QSR traffic and are projected to grow significantly. Meanwhile, Gen Z is known for shaping cultural trends and takes up 21 percent of QSR traffic.
One strategy is expanding the Frosty brand. This spring, Wendy’s will add Frosty Swirls, a Classic Chocolate or Vanilla Frosty swirled with a choice of sauce, and Frosty Fusions, a blending of those sauces with mix-ins. The chain has ramped up its innovation around this iconic frozen dessert in the past few years with new flavors: Strawberry, Salted Caramel, Triple Berry, Orange Dreamsicle, Pumpkin Spice, Peppermint, and Pineapple Under the Sea.
To complement these new offerings, Wendy’s is introducing updated Frosty cups, lids, and custom blue spoons to enhance the overall eating experience.
“Frosty is one of the most iconic items on Wendy’s menu, and we know that consumers are increasingly seeking new flavors and variety,” Radkoski said. “Our new Frosty Swirls and Frosty Fusions will give our fans even more ways to enjoy this classic treat.”
Wendy’s is also looking to capitalize on the growing chicken category, which has proven to be a key driver for frequent visits among fast-food super fans and multicultural customers. Radkoski said extensive testing and consumer feedback are being used to introduce new and improved options, including core menu items and LTOs. Upcoming partnerships will feature chicken-centric products to align with cultural trends and consumer passion points.
The chain wants its hamburger and chicken platforms to be “a powerful one, two punch.”
“Chicken overindexes with all three of our key growth audiences, and based on trends with those audiences and why they’re eating chicken, we don’t expect the growth in chicken to slow down anytime soon,” Radkoski said. “Our mission is clear, we will become famous for chicken. Our menu work on chicken is more intensive than ever before.”
Beverages are another priority. The chain’s premium Craft Lemonades overindex with Hispanic and Gen Z consumers, and the goal is to leverage this platform to drive differentiation in the QSR space, Radkoski said. The company plans to launch several innovations this summer.
Drinks will also be a priority to boost the breakfast daypart, particularly coffee and energy offerings.
“Breakfast is a huge part of QSR and within our direct competitive set. There are 3.6 billion morning meal visits every year. At Wendy’s, we are committed to the breakfast daypart,” Radkoski said. “Our next horizon of growth at breakfast is in beverages. Consumers are deeply habitual in the morning, and these habits often center around their morning beverage of choice. We are building a strong beverage lineup for consumers in the morning that will be just as compelling and craveable as our breakfast food.”
After finding recent success with Spongebob and Girl Scouts collaborations, Wendy’s plans to debut a partnership with Takis this summer. The snack brand is sold in more than 40 countries and has a 79 percent brand awareness among Gen Z. Half of its social media following are 18 to 24-year-olds, which is a “valuable customer group for us,” Radkoski said.
“This collaboration is Wendy’s take on Takis brand ethos—intensifying the fire within,” the CMO said.
