Wendy’s, long the third-largest hamburger chain in the country, is implementing a restructuring plan called Project Fresh: a plan to close the least profitable restaurants, renovate the most profitable ones, and cut about $20 million in operating costs. According to statements by Ken Cook, the company’s interim CEO to CNN, the establishments that have closed did so because they were not performing satisfactorily. Wendy’s has struggled for years to compete with other major chains like McDonald’s or Burger King, which has led it to develop a restructuring plan to facilitate its commercial expansion.
According to data from ScrapeHero, some of the states that still have the highest presence of its establishments are Florida and Texas. The chain’s two main problems are the increase in product prices and the outdated appearance of its locations.Additionally, in the latest new product launch, the chicken “Tendys” was also unable to meet the demand, with all units being sold even before the campaign began.
Wendy’s
Founded in November 1969 in Columbus, Ohio, by Dave Thomas, Wendy’s gained prominence for offering square beef hamburgers accompanied by their Frosty desserts. Gradually, it grew, introducing the drive-thru, franchising, and adding other products like salads to its menu. Today, it is the third-largest fast food chain in the United States and has always been a favorite choice among consumers for its good prices. It has more than 6,480 restaurants in the United States, almost all of them franchised.
Problems for Wendy’s
Despite being one of the most important global fast-food chains, behind McDonald’s and Burger King, the truth is it is not going through its best moment. The brand’s interim CEO, Ken Cook, announced last Friday the closure of a total of 6,000 Wendy’s locations that may cease operations across the United States. This decision is part of a restructuring plan called Project Fresh: a plan to close the least profitable restaurants, renovate the most profitable ones, and cut about 20 million dollars in operating costs.
“The company expects to increase sales and profits by investing more in stores that perform well and closing those that don’t,” Cook said. According to statements to CNN, it will be the locations with “consistently low performance” that will see their doors close, starting this year, 2025, and continuing in 2026.
According to Cook, “These actions will strengthen the system and allow franchisees to invest more capital and resources in their remaining restaurants.” This announcement came exactly one year after the chain had announced a previous closure of 140 locations. It was Wendy’s former CEO, Kirk Tanner, who told CNN in November 2024 that the 140 stores that closed were “outdated” and in underperforming areas.
How many Wendy’s locations are left in the United States?
According to data collected by Scrape Hero, the states that still have Wendy’s locations are:
- Florida: 512 locations.
- Texas: 465 locations.
- Ohio: 404 locations.
- California: 300 locations.
- Georgia: 293 locations.
- Pennsylvania: 262 locations.
- North Carolina: 261 locations.
- New York: 232 locations.
What to expect?
Experts say that the reasons Wendy’s is falling behind are painfully clear: the food has become too expensive and many of its restaurants look and feel stuck in the past. According to Neil Saunders, managing director of GlobalData, “Fast food has gone from being an economical indulgence to an expensive option. That’s why many consumers are cutting back.” The fast-food chain hopes that the changes included in its Project Fresh will help reposition Wendy’s. “We are eager to continue this momentum, and this is an encouraging first step as we seek to reestablish our leadership position in chicken,” said Cook.