Wednesday, January 2, 2013

The Marketing Failure Of Wendy's 99? Menu - Business Insider

Wendy's has a problem: its value menu isn't working.

And its costing the fast food chain customers.

"We're able to segment out where there are losses in traffic from, let's call it, value-based customers versus premium customers," said CEO Emil Brolick in a call with analysts. "We have lost some share in the Value Menu area."

Why didn't its value menu work?

"The My 99? menu failed because operators couldn?t agree on what should be priced at 99? so there was no national standard, making advertising difficult," wrote Scott Hume at Burger Business. "That needed to change."

So, in its place, Wendy's has come up with the Right Price Right Size Value Menu, which it wants to have systemwide in 2013. It's being offered at some stores already.

"This requires a very balanced approach, and we believe that the high-end is an area that you're still going to see an awful lot of pressure against as we look at our 2013 marketing calendar," said Brolick in the call. "But this Right Price, Right Size menu, we think will be a nice addition, along with the continued approach on this very sensitive way that we've approached national couponing as well."

The new value menu is two-tiered, with eight items ranging from $1.29 to $1.79. They can be adjusted in price, as long as they stay under the $2.00 ceiling, and different items can be cycled on or off the menu.

Heard of something like this before? The McDonald's Extra Value Menu works this way.

Source: http://www.businessinsider.com/wendys-99-menu-fail-2013-1

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