Wendy's Essay

290 Words2 Pages
1.1 Introduction In January 2002 Wendy’s lost their founder and patriarch and under the leadership of CEO, Jack Schuessler, management is examining its menu and is deciding whether it should eliminate any of the original menu items, chili being the most probable. This report will look at the chili; what type of product it is, the costing involved and whether it should be kept on the menu. 1.1.1 Background Facts Wendy’s International Inc. is a fast food chain restaurant. The company was founded by Dave Thomas in Columbus, Ohio, United States of America in November Is this essay helpful? Upgrade your account to read more and access more than 650,000 just like it! get better grades 1969. Wendy’s originally started with a basic menu comprising four main items; the hamburger, the chili, the French fries and the Frosty. Wendy’s achieved its initial success by filling a gap in the market by providing quick, quality hamburgers at an affordable price to a different segment of the market namely young adults and adults. It was able to do this through a limited menu and product differentiation. It benefited from the limited menu as these items were well differentiated. This allowed Wendy’s to be prices competitive while serving better quality food. However, they were unable to adapt to competitor change in strategy which targeted Wendy’s customers and its customer’s ever changing tastes. Its drive-through window was successful due to Wendy’s franchises being located in highly populated areas. 2.1 Issues/Problems Wendy's management want to determine the actual cost of a bowl of chili to help them with their menu item decision. It must also consider the founder’s original dream which has become very important due
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