Fast Food and Wendy - 902 Words

(1) Wendy’s was able to achieve its initial success and grow so rapidly at a time when the quick service hamburger business appeared to be saturated because Wendy’s chose a strategic plan of targeting a different segment of the hamburger market, young adults and adults. Dave Thomas’s idea of an â€Å"old fashioned† hamburger allowed Wendy’s to differentiate from the competitors. The hamburger itself is made from fresh beef that is cooked to order and served directly from the grill to the customer. It is done this way to allow the customer to see what they are ordering. Allowing customers the opportunity to see the cooking process gains a certain level of comfort between the customer and the restaurant. â€Å"Old fashioned† hamburgers are square in†¦show more content†¦Wendy’s created an initial level of excitement that competitors were unable to match. Being known as an originator creates a strong bond between customers. (4) See attached computations (5) The out-of-pocket cost determines the true profitability of the chili. (See attached computations). I performed two scenarios for the out-of-pocket cost. The first scenario is the standard 90% of the time where no extra meat needs to be cooked for the chili, and the second scenario is a hypothetical 10% of the time meat needs to be cooked specifically for the production of the chili. After calculating the costs for the first scenario, the total cost was $0.3615/8-ounce bowl and $0.5073/12-ounce bowl. Under the second scenario, the total cost was $0.5795 and $0.8343/12-ounce bowl. Both of which ring up well below selling price, resulting in a profit. After calculating the weighted average cost for both the 8 and 12 ounce bowl of chili, both costs are favorable after comparing them to the selling price. (6) I would not recommend dropping the chili. Under full absorption costing the chili appears to be unprofitable, but given that, full absorption costing also adds in unnecessary costs such as meat. The meat is a variable cost in that its costs vary on the percentage of time that not enough â€Å"well-done† hamburger patties have been left over. The out-of-pocket and joint cost analysis paints a far better picture at the true cost of a bowl of chili. While myShow MoreRelatedWendy s The Third Largest Fast Food Company1737 Words   |  7 PagesIntroduction Wendy’s is the third largest fast-food company in the United States. They are one of the most successful and profitable hamburger stores in the world. Through this, the industry is in a quagmire. One company is going to break through and develop a technique in which they will be able to limit the expenses and increase profit margin while adding stores. The company hat is able to develop this first will be able to control the fast-food industry. Wendy’s has the ability to do it by acknowledgingRead MoreWendys vs. Mcdonalds642 Words   |  3 PagesI. Main Idea: Wendy s started from scratch in the large town in Ohio and now has over 6000 different locations. A. Wendy s first restaurant opened on November 15 1969 in Columbus Ohio. 1. 1 year later the second Wendy s Old Fashioned Hamburgers was opened on the other side of town. 2. The second Wendy s also displayed their first ever drive up window. B. In 1976 Wendy s had its first public stock with 1 million common shares for 28 dollars a share. 1. Wendy s spread to Canada in lateRead MoreEssay about Competition Among Fast Food Chains1639 Words   |  7 PagesCompetition Among Fast Food Chains MARKETING INFORMATION NEED FOR THE FAST FOOD INDUSTRY To begin with, for the fast food industry around the world, the leading fast food chains; marketing information is wrapped around from convenience location, changing preference, quality of food, pricing of fast food, potential customers, age of the customers, menu selection and diversification and last of all superior service. From marketing perspective, LOCATION for the fast food service toRead MoreMcdonald s Corporation International Financial Performance Essay1369 Words   |  6 PagesThis paper analyzes McDonald s corporation and Wendy s corporation international financial performance. Data for various financial ratios have been adopted from income statement, balance sheet and cash flow statement. The biggest fast food chains and widely known are McDonald s and Wendy s. To compare these two companies financial capabilities we will have to look at current ratio, earnings per share, earnings/price, equity/debt ratio and divided yield all need to be carefully thought out toRead MoreSwot Analysis : Burger King1234 Words   |  5 Pagesdistinguish itself in a rapidly growing industry by providing its customers with a unique fast-food experience 3- OPPURTUNITIES: Stated that the company planned to increasingly use acquisitions of smaller brands and joint ventures as the primary driver of future growth. In selecting potential acquisition targets. 4-THREATS: Burger King’s menu also offered a few items that set it apart from other fast-food restaurants, thereby offering customers a varied menu and posing a serious threat to Wendy’sRead MoreWendys International, Inc.1409 Words   |  6 PagesWENDY S INTERNATIONAL, INC. As emphasized on its web site, Wendy s was founded on a motto of Quality, Service, Cleanliness, and Value. The company aims to follow that motto in all of its restaurants. They want in return Customer Loyalty and Satisfaction, by their plan to exceed customer expectations, foster a performance-driven culture, deliver the balanced message of brand equity plus value in outstanding advertising, and most importantly creating a healthy restaurant system. Wendy s facesRead MoreCompetition vs. Monopoly952 Words   |  4 Pages1. Analyze the fast food industry from the point of view of perfect competition. Include the concepts of elasticity, utility, costs, and market structure to explain the prices charged by fast food retailers. Firms within the fast food industry fall under the market structure of perfect competition. Market structure is a classification system for the key traits of a market. The characteristics of perfect competition include: large number of buyers and sellers, easy entry to and exit from theRead MoreWendy s 4 For Four : The Most Beautiful Ad I Have Ever Seen849 Words   |  4 Pagesof the food. This ad can appeal to more than one audience which is what makes it a great ad. Wendy’s has been around since 1969 and is well known for their square burgers. Wendy’s is very cost efficient as a fast food restaurant and takes pride in making everything fresh. With their now wide variety menu the 4 for 4 made Wendy’s even more cost effective for the average Americans. Although some of their biggest competitor’s Burger king and Mc Donald’s are adding into these deals Wendy’s food qualityRead MoreCorporate Social Responsibility Of A Fast Food Industry1488 Words   |  6 PagesRestaurants) or the Fast Food Industry, has been burgeoning in the past few decades with the emergence of global brands like McDonald s, Domino s, Wendy s, KFC, Subway, etc. The success of these brands can be attributed to the continuous differentiation strategy they follow to ensure their brand stands out from the remaining. The popularity of these restaurants is due to the quick service of quality fast-food and minimal table service, everything of which is customer-centric. Food is advance-cookedRead MoreCase Study : Wheres The Beef 1206 Words   |  5 PagesTARES Evaluative Essay: Wendy s The ad that will be evaluated with the TARES test is Wendy s Where s the Beef? campaign. This ad originated in 1984 and was meant specifically to target their competitors. Instead of trying to show a new product that was to be introduced, Wendy s used this advertisement to point out the lack of beef used in their competitors burgers. This advertisement was meant to make the general public aware that their competition was not providing them with one hundred percent