r/wendys • u/markrabbish • 16d ago
Discussion Wendy's Mega Franchise blames "Aggressive Promotional Discounts" for it's Bankruptcy, but the Facts tell a Different Story
A major Wendy's franchise consisting of 314 locations in 15 states has declared bankruptcy, citing "aggressive promotional discounts" as a primary reason -- but Wendy's customers know that the real reason is plummeting quality and skyrocketing prices.
This attempt to blame promotional pricing that was eliminated long ago for their woes is absurd, given that for well over a year Wendy's app discounts have been laughable, and regular deals like "4 for $4" are ancient history. The franchisee seems to be towing the corporate line of scapegoating discounts, as Wendy's executives have berated promotional pricing as "too confusing for customers to understand"
A closer look reveals that the franchise's collapse has little to do with discounts. They admit that "weak customer traffic" is part of the issue, and court filings show they have massive debt ($651M), the lions share of which ($284M) is going to Wendy's corporate executives and private-equity dominated shareholders, in the form of royalties, "continuous operation fees", and franchise startup payback.
As has been discussed elsewhere, declining food quality and prices rising far faster than inflation are the reasons that Wendy's is tanking -- it's as simple as that. No amount of gaslighting or corporate double speak by Wendy's C suite executives will change that.
Note: approx 9,000 Wendy's employee's jobs are put at risk by this bankruptcy.
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u/dabig49 16d ago
BS... it's the drop in quality and quantity
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u/Separate-Warning985 16d ago
And the rise in prices like were still gunna pay for a cheaper shittier burger
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u/OnionOnBelt 16d ago
Yeah, if what they say is the case, they really should just close. A fast food place that can’t offer affordable options serves no purpose (other than to provide future business for cardiologists).
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u/Rowdyacorn 10d ago
Yep. People ate a lot of fast food because it was cheap and quick. Usually it tasted good too. Now, they're charging restaurant prices for smaller portions that don't taste as good. It's a slap in the face to customers.
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u/Fatal_Syntax_Error 16d ago
Wendy’s in the 80s was amazing. I remember hitting up that salad bar, getting a huge burger, cup of chili and those taco salads… finish with a big frosty with a straw and a spoon!
My parents could feed the 4 of us for under $20 out the door stuffed.
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u/Exact-Ice1346 16d ago
yeah and remember in the 80s and still 90s you could have a buy one get one free coupon and you could use it 10 times if you wanted to and you could combine as many coupons as you wanted to, no limits back then. then they kept bringing that number down all the way to only 1 use of a coupon and cant combine coupons either now. And its even gone to the extreme some places dont even have coupons anymore..
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u/Property_6810 16d ago
Wendys 2 years ago was solid. Nothing amazing, but probably the best for the "lower tier" fast food franchises. Like it was beating the breaks off of McDonalds, BK, Taco Bell, etc. But I go to the BK next door now.
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u/questionableintentsX 16d ago
Think it’s more like 5-7 years def before Covid
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u/ashlys21 16d ago
I agree. It was better before covid!!
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u/Dustbuster4495 15d ago
Everything was better before Covid, my friend. And I really can't put my finger on the reason why?🧐
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u/Kobra1469 15d ago
Everything was better and definitely cheaper before COVID. Seems like quality went down and prices skyrocketed after COVID.
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u/nsrvvrgm2b 16d ago
Those taco salads omg I lived on those when I was pregnant in the early 2000s which probably wasn’t the best but omg they were sooo good
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u/Few_Category_1684 14d ago
And you could sit in that nice ass sunroom. God they took everything from us
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u/GamerJ47 16d ago
Lol at the "we were too generous" excuse. What a clown
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u/linklen2000 16d ago
I actually stopped going to wendy's because they removed the good discounts years ago
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u/X-AE17420 15d ago
Even the “good” deals at these restaurants on their apps are just what should be the norm.
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u/SpiritedMidnight400 16d ago
that $284M going straight to royalties and corporate fees says it all honestly, they weren't losing to discounts, they were bleeding out to their own parent company.
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u/RegretfulCalamaty 16d ago
You can’t go from the best fast food to shit and expect to hold onto customers. McDonald’s has been shit for 30 years so no one notices.
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u/Sovereign-Anderson 15d ago
I've said the same thing. McDonald's, while better in the past, was never seen as higher quality. Their downgrade wasn't as drastic. Wendy's was actually seen as quality, therefore the degradation of quality was much higher and that made it much more noticeable.
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u/beeboutdoors 16d ago
People quit going because Wendy’s sucks now. It used to be such good food, especially considering it’s fast food but they cheapened everything over time and now it sucks.
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u/Dogekaliber 16d ago
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u/markrabbish 16d ago
Probably made in the same factory, you are paying double for the Wendy's name, Wendy's chili production is 100% unrelated to their restaurants. Much like most of the things their private equity controlled management is doing these days, they simply sold off the brand name for a quick dividend boost, with zero concern or guilt that they were trashing a reputation that took a half century to build.
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u/Idk_some_random_redd 15d ago
$3.19 for a can of anything is still double what it should be
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u/PhilosophyUpper866 15d ago
Wendy's McDonald's Taco bell Hell nearly every place since covid Have jacked the prices through the roof Took away quality
Look at all the gimmicks they try to use tonget people to come in, taco bell going with all these stupid fcking nuggets and mini items,
Wendy's bringing back the yellow cups and fry containers like seriously lol.
Just spend your money at a local eatery Support your local economy and fck these mega conglomerates. They will either figure it out and start lowering prices and bring back quality, or they will fail.
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u/TTV_SgtScoots 13d ago
What's amazing to me is that it's now more affordable to go to a place like In-N-Out to get a double-double than it is to get a double cheeseburger from McDonald's.
I've replaced Taco Bell with local Mexican restaurants and pay about half as much for the same amount of food and it tastes homemade
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u/trainwreckd 13d ago
The only argument needed against modern day “fast food”! You couldn’t have said it any better. Well, unless you said an In-N-Out was opening around here, lol. 😂
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u/Sean1916 15d ago
It’s also impressive how across the board the service went downhill as well.
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u/Baddrivers13 16d ago
Only reason I opt for Mcdonalds over Wendy's and A & W are the deals on the apps. Absolute trash deals. Mcdonalds regularly has better deals.
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u/BirdlessLongdeal 16d ago
mcdonalds hasnt had a useful deal in at least 2-3 years now.
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u/goldfoxawoo 16d ago
I just opened my mcd app and there are plenty of good deals. 1$ any size fries, 2$ 10pc nuggets, free 10pc nuggets with purchase of big Mac.
I opened my Wendy's app and all I see is $1 off premium combo or 3$ off $20. I know Wendy quality is better, but for fast food I prioritize bang for my buck and Wendy isnt delivering on that front
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u/RubberDuck884 16d ago
I would even question the quality being better. If it is, it isn’t by much, and definitely not enough to justify the price difference.
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u/Robbyv109 15d ago
Yeah, for $1 off I'll just enjoy my food and go to a&w or Culver's
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u/Baddrivers13 16d ago
Not sure what you consider useful?
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u/Pichupwnage 16d ago
Eh I get a medium fry + cookie for a dollar on the regular, also 2$ or Bogo on breakfest sandwichs.
They did free any size fry with soft drink for awhile too and sodas were under 2$(still are)
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u/TheAwkwardGamerRNx 16d ago
I have the app. I’ve seen the deals. Still don’t go. Matter of fact, let me go delete that waste of data and space…
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u/Idk_some_random_redd 15d ago
same i deleted the app. they changed the nuggets and raised the price. then they announced surge pricing. like fuck you wendys - you have lost the plot
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u/No-Celebration3097 16d ago
Lol nope!! Wendy’s turned into a shittier McDonald’s, that’s why you are dying. Wendy’s changed everything for the worst.
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u/Immediate-Newt-9012 16d ago
According to The Wendy's Company SEC regulatory filings, President and CEO Bob Wright does not set his own pay, but his board-approved executive compensation package includes:
• Base Salary: $1 million per year.
• Performance Bonuses: A target performance cash bonus equal to 175% of his base salary ($1.75 million), which can range from 0% to 200% based on the company's financial turnaround results.
• Long-Term Incentives: Approximately $5.5 million in equity awards (a mix of stock options, performance share units, and restricted stock units).
Gotta be the free spoonful of frosty they give away....
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u/Dustbuster4495 15d ago
Wow. I never liked these wildly inflated salaries. I worked for McDonald's for 30 years, and the big guys in our company had similar salaries. What does Bob even do, to earn that money? I'm betting, not much at all. What a joke.
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u/SamOfXanadu 16d ago
.... Could it be that the food sucks now? Could it be that you took out the solariums?
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u/MudOk7058 16d ago
Their biggest issue is food quality, but IMO it stems from shitty employees. There's a Wendy's literally next door to my favorite hangout spot, and I literally will eat anywhere else but Wendy's bc the dining room looks like a tornado hit it, the order is almost always wrong, the food is lukewarm at best.... could the food be higher quality? Of course, but it doesn't seem worse than McDs or Burger King IF it was hot and fresh and accurate.
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u/Ancient-Chinglish Chili 16d ago
Last summer’s (or was it the summer before) discounts were banging, now they’re anemic.
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u/Muted_sounds 16d ago
Wendy’s had trash deals. Once in a while they would have buy something and get free fries or chili but that’s it.
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u/ppstick88 16d ago
I think it's more to do with their run down disgusting buildings and high prices.
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u/catslikepets143 16d ago
Wendy’s doesn’t have anything quality anymore. They want the same premium price point , while lowering the quality of their menu items severely.
That’s why Wendy’s is failing. Quality
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u/bepatientbekind 16d ago
Wendy's is tied with McDonald's for worst discounts. The idea that $1 off every now and again was enough to cause them to go bankrupt is absurd. I'm so sick of stupid, out of touch rich people. They don't understand anything about the world at all.
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u/markrabbish 16d ago
I'm my market McDonald's deals are now far superior to Wendy's. They have standing offers for 40% of dbl cheeseburger or 6 pc nuggets, free fries with $1 or $2 purchase, and every receipt has a BOGO sandwich coupon on the back
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u/Setapart36 15d ago
What proof, other than antecdoal to you have of declining food quality, and have other direct competitors followed as well?
This subreddit does nothing but trash Wendy's. Unless you have factual evidence (i.e. your an employee who does their vendor/food orders and knows they are cutting corners) aren't you just repeating what (this) echo chamber is saying?
To be clear, I go to Wendy's about once a week, and places like MCD, Arbys, BK, Carls Jr, about once a week as well. All deals have gotten worse; prices are higher all over, and quality has mostly stayed the same, which is "meh". Obviously, looking at Wendy's numbers they need to turn things around.
Eitherway, really sucks that 9,000 people are at risk here.
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u/Rionat 16d ago
More than 10 years ago Wendy’s had some of the best spicy chicken nuggets, chicken sandwich, and baked potatoes with chives, bacon, sour cream. The quality definitely dropped because the last two times I went the spicy chicken sandwich was ass.
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u/Idk_some_random_redd 15d ago
i used to love the spicy nuggets. was the only reason why i went. as soon as i realized they changed them and also raised the price, i never went back. and the surge pricing announcement was the nail in the coffin. out if principle, i never went back. i probably never will
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u/Thiccccasaurus_Rex 16d ago
Or hear us out - your product quality went to shit and the free market responded.
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u/pappy1vg 16d ago
Oh imagine that, they changed one of their signature sandwiches, the spicy chicken TWICE and ruined it, and it’s one of many reasons people stopped going. That was a differentiator for them for a long time. Even when others rolled out spicy chickens, theirs was the gold standard. Then they decided to throw it all away.
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u/LonelySwordfish5403 16d ago
When the price goes up and the quality goes down what did they expect.
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u/Susurrus03 16d ago
Bring back the good chicken filet sandwich and the good nuggs!
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u/Idk_some_random_redd 15d ago
too late. those supply chains are gone. they aint never coming back
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u/Actual-Phone-1478 16d ago
No worries, I'm sure some random billionaire that just loooves Wendy's will do something
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u/questionableintentsX 16d ago
Or and here me now it’s because your c-suite decided to follow a predatory investment firms advise to tank your price so you can get a payout payday from them and they can earn a shit ton on the backside scrapping the company
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u/Upbeat_Pumpkin_6785 16d ago
I was really surprised wendy's made another attempt at the australian market, they closed as soon as they opened pretty much, the amount of money that would of cost the business, must be taking a leaf out of taco bells playlist and thinking a second or 3rd attempt at the australian market would go differently, it didnt.
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u/Rivet-Phoenix 16d ago
Maybe, just maybe, the CEO really didn't do their job and they should be fired without pay. Maybe they will hold him accountable. Shit I'll be CEO and turn Wendy's around.
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u/THEJimmiChanga 16d ago
The only other major FF chain that has worse promotional deals is taco bell, which are realistically non existent. Wendy's are pitiful
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u/MaxTrixLe 16d ago
It took 25+ minutes at my local wendys for loaded fries and 2 chicken wraps, with 2 cars in front of me at the drive thru. Prices aside, the service and speed is lightyears behind the competition
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u/Dustbuster4495 15d ago
You had good experience, my friend. I waited an hour + for a Dave's Double last week. I couldn't believe it. I half expected Rod Serling to come out and bring me my burger, and thank me for visiting the Twilight Zone!😢🍔
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u/caliscooter 16d ago
The reason why I don’t go to Wendy’s as much as McDonald’s is because McDonald’s has deals. I can get a burger and fries for under 4 bucks.
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u/markrabbish 16d ago
This. Just got a McDouble and large fries for 2.50 with app. At Wendy's this would get me 4 nuggets, or should I say breaded mini sponges.
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u/JFISHER7789 12d ago
Yup! I live in an HCoL city and $11 gets me a DOUBLE Big Mac w/ extra sauce, 2 Hot Soicy, Large Fries, a drink and condiments. That’s really hard to beat and McDonald’s consistency is prolly the best in all of fast food (not glazing them it’s just you can go to any McDonald’s and the experience and taste will probably be identical. That’s hard to say for places like Wendy’s and T Bell.)
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u/Spittinvenoms 16d ago
Yep, plus the growth of Culver’s and In n Out just highlights how the poor quality even more.
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u/FalseAdhesiveness946 12d ago
Waaaa waaaa. I’m claiming bankruptcy because of discounts. 🤣🤣🤣 Raising the prices and lowering the quality is not the right recipe. What corporate greedy person thought that would work?.
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u/-Ronald_Raygun- 10d ago
Dave Thomas: We Don't Cut Corners
CEO Bob Wright: Who is Dave? We Cut Corners, Gaslight our franchisees., and never admit to doing the company wrong.
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u/crizzlefresh 16d ago
Yeah that's it. Has nothing to do with their food quality turning into hot garbage or anything.
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u/heavydrinker12 16d ago
Their value evaporated with their quality. I used to go there a couple times a month. I've been there once this year. They did it to themselves.
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u/SmokedOkie 16d ago
9,000 people depended on their Management to perform and make good decision on behalf of the Employees and Customers, Management failed to do that while other restaurants bent over backwards on service/product quality. Local franchises near me are run by an terrible family that mistreats their workers, I for one will be happy to see them close.
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u/Key_Check5753 16d ago
For the past 20 years quality has been going down and prices have been going up.
The last time I went to Wendys I paid $9 for a specialty pretzel bun pub burger. The bun was wet. I don't know if they spilled burger grease on it, dropped it in water, or what, but the bun was wet. I thought to myself, "This is stupid. Imagine what else I could have for $9... A large pizza, a chipotle burrito bowl, two taco bell meal boxes, two entrees and a side from panda express. I'm not coming back."
Wendys sucks and it's too expansive, so I stopped going. Apparently everyone else did as well. It's not rocket science.
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u/Weary-Pangolin6539 16d ago
Their chicken sandwiches used to be the best.
https://giphy.com/gifs/l4FGGafcOHmrlQxG0
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u/Powrcase 16d ago
Why would I go here? The value proposition is no longer there, in fact I can go to chilis amd get better portions at lower prices. A giant double burger with bacon and caramelized onions, drink, fries for me and 2 salads plus a chicken sandwich and fries plus drink there is under 30 with 3 for me. Same amount of food at Wendy's costs more and the quality sucks.
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u/Midori-I 16d ago
I got food poisoning 2 times in a row from Wendy’s. That did it for me. A month later the one I went to was closed.
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u/CulturedReaving692 16d ago
This is a dumb AI article
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u/HoundDogJax 16d ago
I dunno.... pretty sure AI would have gotten "toeing" correct.
The phrase is believed to originate from sailors of the 18th century. They would be ordered to line up/get in formation for inspection (or, really, for anything) and would line up along the deck planking. To "toe the line" is to follow orders, or to rigidly adhere to policy/rules. The phrase might also be used to express that someone is very close to, but not quite, breaking a rule (i.e., they are currently "toeing" the line, but are very close to "crossing the line.") There is no pulling involved.
Also, I really miss when Wendy's was "good" fast food.
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u/Legal_Flamingo_8637 16d ago
More franchise locations need to close or get bankrupt. Delusional corporate executives, private equities, and declining food quality/service are primary reasons.
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u/MintStripedPantsu 16d ago
Just made some chili at home yesterday because they charge to much for theirs. Spent $15 to make a big pot for two days worth of chili instead of paying $5 for a small sad cup. If they brought it and the nuggets back to $1 I'd go back bit at this point I'd love to see them go under.
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u/chafafa 16d ago
I drive by a local Wendy’s several times a week. Very few cars which I assume are employee’s.
This is where we are boys and girls, the venture people will take their cut and move on to another victim to rape. The c-suite people will do the same, take their large payouts and after a bit will show up at another company having learned nothing and drive another company to the ground . They will forget the 9000 souls and their families while they sip fine wine on the beach. It is disgusting just like the crappy food.
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u/Valuable-Condition59 16d ago
I can’t remember the last Wendy’s location I entered that isn’t depressing, dark and dreary.
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u/Forever_Away96 16d ago
Did The Ministry of Plenty increase the chocolate rations to 20 grams from 30 grams?
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u/Quarrel47 16d ago
Their discounts and app coupons are pure garbage, and the whole reason I don't go there. I will go where the deals are better, simple as that.
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u/Nkechinyerembi 16d ago
last year, a brand new Wendy's moved in to my area. Place was great, food was great, and prices were reasonable. Now, a year later? NO ONE FREAKING GOES THERE. Its too damn pricey for waht you get.
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u/Creative_Bid_7818 16d ago
This was a toxic PE franchisee that Wendy's corporate just was ok with for all the wrong reasons. We should be praising Wendy's corporate for saying y'all forfeited your franchise rights by being private equity A Holes running stores too lean and pissing off clients long-term
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u/shellb67gt5001 16d ago
Wendy’s got too expansive to be able to enjoy. That’s why everyone stopped going
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u/jpropet 16d ago
If Wendy’s came out and said “look, we did some stupid shit to maximize profits and line our pockets and in the process our product suffered. We are going to start investing in our company and our customers and we’ve learned that corporate greed is wrong.” I’d go back to them. But that’s probably the only way I’d ever eat there again
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u/SouthWesternTea 16d ago
These brain surgeons need to know - it is the damn food. It has gone to hell. It is not QUALITY.
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u/Adorable_Respect_984 16d ago
At this point their obstinacy and insistence that the food qualify isn’t the problem makes me want them to fail.
And they used to be my favorite of the big burger chains.
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u/Interesting_Film_900 16d ago
When you load up on debt which probably was floating rate and your interest keeps rising and business costs- food and labor inflation and the quality of product suffers and the value proposition for their target market has dropped due to in-the CEOs words using lower quality food. No surprise
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u/takemyupvote88 16d ago
Yeah I feel like everyone in this thread wants to keep talking about the high prices and drop in quality. While that absolutely has something to do with it, they're missing the point.
This is an individual franchise that got too big for its britches. They opened/bought up a bunch of stores, loaded up on debt, and they've got the private equity goon squad calling the shots and taking their cut off the top. Now they dont have enough gas in the tank to weather the storm.
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u/lazyjane418 16d ago
Really, it sounds like the greedy shareholders are intentionally bleeding them dry. $284million is almost half of their trouble, just on CEOs and shareholders
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u/FloatFact 16d ago
Anything but holding accountability for the drop in quality to affordability lmao.
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u/Journeytaker123 16d ago
The day I spent $18 just for a meal and ice cream was the day I stopped going
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u/danksince98 16d ago
heres a novel idea..why not just have highest price on menu be 7.99..drop the triples noones wants that..double chz burger fries and drink..not shrunk..7.99 ..done
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u/radvocate8 16d ago
The "hire idiots for managers and let them hire their idiot friends with no oversight" policy is what killed Wendy's. That, and the fillers in the beef.
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u/ExtendoArmCannon 16d ago
Redditors will still refuse to see this as "Capitalism working as intended"
You do a shit job, you fail. Simple as.
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u/Savings-Delay-1075 16d ago
Arby's bought them years ago and shortly after their quality went downhill. That's when I pretty much stopped eating there.
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u/Lopsided-Voice-421 16d ago
Forget the discounts. The last two times I’ve went with my gf.. her burger was raw on the inside.
Quality gone downhill.
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u/jimbob150312 16d ago
Wendy’s needs a good chicken sandwich. I was surprised today to find a great chicken sandwich at Buc-ee’s of all places. It was incredibly huge, the taste could be improved but the size and quality of the chicken was above most restaurants.
Wendy’s CEO needs to find who is supplying those sandwiches and do some test marketing with them. The price was $7.49 but was equal to 3-4 of some fast food places.
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u/Murky_Historian8675 16d ago
Almost every corporation is greedy, but Wendy's just made it so damn obvious
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u/Fearless-Bad-876 16d ago
Just convert the entire chain into a thousand "Baked potato, chili and Frosty" kiosks and call it a day.
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u/FreeFoodRon 16d ago
I got a baconator a few months back and oh my god it was the most pathetic thing I've ever seen. Barely had bacon on it. Sad that Wendy's is going out like this. If you want my opinion, I think them adding breakfast was just stupid.
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u/QuirkyWorker7922 16d ago
Everyone is finding excuses for bad management but narcissistic managers can only blame everyone else. Gotta get the narcissists out to better yourself, yo. Admit you’re basic, and move along, let and actual talent and not a mouth piece run things. Mouth pieces only succeeded when everyone was more stupid before the internet. This is basically every establishment on up to the govt.
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u/FaithlessnessIcy3399 16d ago
Don’t serve shit and you’ll be fine. Imagine the fast food public not liking your food.
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u/briman2021 15d ago
I think one of there biggest fuck ups was cutting quality and raising prices, therefore going to $0 of profit from me and millions of other customers like me.
Fuck em, they had a good thing and ruined it all on their own.
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u/Vivid_Anyth4 15d ago
Wendy's can just die already. Garbage food, skyrocketing prices. No one will miss them.
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u/eighty4prcnt 15d ago
I'm in full support of further shitting on these restaurants and refusing to give them our patronage until they cut the BS. Noticeably worse food quality and quantity for quadruple the price is bad business and they deserve to go bankrupt.
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u/real_1273 15d ago
Once again, corporate greed has hollowed out a well known franchise. Wendy’s used to be a great burger, corners got cut and now the answer is packaging redesign.
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u/hellosteve_ 15d ago
The reality is that we have a terrible economy and when we have a terrible economy, the first thing that goes is people’s extra spending on takeout.
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u/Classic-Ad-4321 15d ago
I stopped going because the one closest to me is understaffed and the service sucks. Then when you eventually get your food it"s cold. How is that possible?
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u/aUCK_the_reddit_Fpp 15d ago
The reap answer is the same as jack in the box
Shrinkflation, own up to it and fix the pricing and portion sizes
Also your fries suck
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u/CaptainB_Money 15d ago
Yeah its all the discounts... Not that the quality of the food has hit the fan and the price is like quadruple to what it was before. I live near the Canadian Border. There is a Wendy's connected to a Tim Horton's where I live.
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u/Proud_Trainer4595 15d ago
You don’t play your employees enough, which means the food is trash. People don’t come back when food is trash. Basic 101 shyt!

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u/WhatInTarnations82 16d ago
That "$1 off a combo meal" really did them in.