Wendy’s Breakfast menu consists of nine sandwiches. There are three new sandwiches served on biscuits, classic buns, and croissants with meat and eggs.
Wendy’s is joining the breakfast game with a new menu starting today, 2 March. This is Wendy’s strategy to win the breakfast competition, including spending a large amount on advertising. Basically, breakfast is the only meal that is attracting more customers. According to data from the NPD Group, breakfast plays a vital role in the overall business. As it accounted for 16{7d6bb1f761e691f027164c9fe6d1ebbc4659a250013ce39dc45a15ede39dbac5} of fast-food chains’ traffic in the past 12 months.
Technomic senior principal David Henkes said that as restaurants, and mainly when you talked about a breakfast war, you tended to be competing for consumers that are already breakfast consumers. The challenge was to expand that pie.
Wendy’s is saying that breakfast will ultimately account for ten percent of its U.S. sales. To reach on target, Wendy’s will use national advertising campaigns, starting this Monday, 2 March, to coincide with the nationwide launch.
Wendy’s CFO Gunther Plosch said on Wednesday that the chain planned to spend between $70 million to $80 million in 2020 on advertising for breakfast. They are going to increase its total media spend by about 30{7d6bb1f761e691f027164c9fe6d1ebbc4659a250013ce39dc45a15ede39dbac5}.
Other fast-food chains that serve breakfast are expected to step up their marketing to compete with Wendy’s.
McDonald’s Response
McDonald’s also started offering a national 2 for $4 promotion 24 February on several of its breakfast sandwiches. The Chicago-based company has announced Monday “National Egg McMuffin Day” and plans to give free Egg McMuffins.
McDonald’s CEO Chris Kempczinski said in January that he had to win at breakfast. There was a lot of focus and attention that he was going to be putting on that in 2020.
Wendy’s said that he fully expected his competitors to start discounting.
Wendy’s U.S. President Kurt Kane said in an interview that the good thing for him was that every discount they offered takes profitability out of their franchisees’ pockets and out of their restaurants.
Kane said that he loved whenever he got a convert from McDonald’s that came over to support his food. Because they knew it was so much better than what the Frozen Arches might be selling every day.
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