The Major Fast Food Chain That's Closing Over 100 Locations In The US
International fast food chain, Wendy's, today announced it will be shuttering 140 of its locations in the U.S. The restaurants scheduled for closure were selected based on their underperformance in terms of expected profits, said Wendy's CEO Kirk Tanner (via CNN). For each closure, the fast food chain will be opening new locations that management hopes will drive higher traffic.
Tanner said the closing restaurants are not locked within a certain region — the chain performed a detailed financial review and spotted specific locations that were ringing in profits significantly below the company's standards. Wendy's determined which locations were to close based on their sales, growth potential, and ability to provide a positive customer experience.
Wendy's spokespeople announced the chain planned to end operations on 100 other locations earlier this year. Though a sustained series of closures might seem like a sign that the fast food chain is going under, it continues to report growth, as suggested by its to-come new and improved restaurants and stable stock price.
Fast food and fast casual in trouble
Wendy's is among a number of fast food chains that have closed or planned to close locations this year. Many of these closures are targeted to specific regions — Bojangles and Shake Shack, for example, wiped out many, if not all of its spots in Maryland and the Los Angeles area, respectively. Wendy's announcement of its recent closures sets the chain apart from the tide of fast food chains shuttering. The company strategically chose to close certain locations for the chance of potential growth in the future.
Fast casual restaurants have also not been safe from shifting market trends. Denny's recently announced it will be closing over 150 restaurants during the next year. Like the companies in a similar boat, it attributes closures to a series of underperforming restaurants. Just last week, TGI Fridays closed 50 restaurants, in addition to 36 more closures, which occurred earlier in the year.