Wendy's CEO sounds alarm on disturbing consumer trend
Imagine for a moment that you're walking down the street of a city in Ancient Rome and you suddenly get the munchies.
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You're dying for something to eat but you're running late for the gladiator tournament — where people are dying for a living. What do you do?
Okay, Brutus, don't get your toga in a knot. All you have to do is stop at the nearest thermopolia for some eats.
These were open-air counters selling prepared hot and cold meals, and they offered meats, cheeses, vegetables, olives, legumes, pastries, and drinks like wine and spiced beverages.
While some thermopolia had a few seats, the primary focus was on quick, on-the-go meals — which might sound an awful lot like today's fast food restaurants.
The quick-service-restaurant concept has continued through the centuries and now this global fast-food market is valued at roughly $902.1 billion, with the U.S. fast-food market alone valued at $417.5 billion.
Wendy's is launching a new campaign to bring in more customers. (Photo: Artur Widak-NurPhoto via Getty Images)NurPhoto/Getty Images
Wendy's CEO: consumers under pressure
Wendy's (WEN) is one of the biggest names in the QRS space. Founded in 1969 by Dave Thomas, the company is now the world's third-largest fast-food hamburger chain.
But the QRS industry is currently contending with rising costs, labor shortages and increased competition.
On May 3 Wendy's posted mixed first-quarter earnings and trimmed its outlook for the year, warning that sales in 2025 might fall from a year earlier.
During the Dublin, Ohio, company's earnings call President and CEO Kirk Tanner noted the tough economic climate.
"The consumer certainly is under pressure," he told analysts. "I think that's reflected in the Q1 numbers, and we see that persisting. We thought it was prudent to plan if the consumer is under pressure for the full year, what do we do to control what we can control."
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Consumer sentiment tumbled 11% last month to the second-lowest reading on record going back to 1952, amid concerns about inflation and tariffs. April's reading was lower than anything seen during the Great Recession.
In this environment, Tanner said, "we know that customers are looking for an even more compelling reason to visit restaurants."
"In response to changing consumer behavior, we're launching a new 100 Days of Summer campaign to provide customers even more of our fresh, famous food through core innovation, collaborations, and value offerings at a time when our customers need it most," he said.
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