Wendy’s iconic burgers haven’t changed—but the brand is still leading the way in innovation
By Joelle Kidd
Way back in 1969, brand founder Dave Thomas opened the first Wendy’s restaurant in Columbus, Ohio. Enter a Wendy’s restaurant today, and it won’t seem too far removed from that very first location more than 50 years ago—same all-beef fresh, never frozen hamburgers shaped into square patties, same creamy Frosty desserts, even the smiling likeness of Thomas’ daughter with her two red braids out front.
But there’s another thing that’s been a part of the brand’s DNA since the beginning: innovation.
“A lot of people don’t realize that Dave Thomas was actually the first quick service restaurant (QSR) operator to have a pick-up window,” says Paul Hilder, senior VP and managing director of Wendy’s Canada. “So, innovation is really at our core.”
Whether it’s keeping on the cutting edge of technology, advancing how customers interact with the restaurant, or pioneering new ways to partner with potential franchisees, Wendy’s Canada is keeping the classics fresh.
Iconic growth
Wendy’s began franchising in 1973, with a dream of growing around the world. Today, there are more than 7,000 Wendy’s locations worldwide, and more than 400 in Canada. The brand’s Canadian roots stretch back to 1975, with its first location in Hamilton, ON—a restaurant which is still open today.
Hilder has worked with the brand since 1996, and has led the Canadian business since 2012. Through his years at Wendy’s, he says, he’s seen the magic formula: a blend of consistency and innovation. In Canada, this evolution has included updating restaurant facilities, reimagining decor and design to keep the brand fresh, and finding new ways to meet customer habits.
“We’ve taken the next step of evolving how the consumer accesses the brand,” he says. Consumer behaviour has shifted dramatically in the past two years, in response to the pandemic, paying off in an acceleration of delivery, the use of mobile devices, and touch-screen kiosks for ordering. “Consumers access the brand differently, so we’ve adjusted our design to accommodate that—not only from the customer experience, but also how we execute in the back of house, to make it easier to run restaurants as franchisees,” Hilder explains.
The pandemic created opportunities “to step up and think about how to do things differently,” Hilder says. “We focused on access—pick-up window, delivery—and engaging with our people, partnering with our franchisees to ensure they were supported and making our customers feel safe.” They also took care to keep customers’ favourite promotions, like the annual 99-cent Frosty summer promotion, going. “We didn’t stop doing things to connect with consumers because we were in a pandemic.”
In fact, Hilder says, the COVID-19 crisis “initially seemed like it was going to be quite disastrous. But it in fact turned out to be, for us specifically in this industry, very strong years, from a performance standpoint.”
People powered
Franchise owner Susan Allison didn’t dream of going into food service; it was after she and her late husband decided to diversify their business portfolio (they also had businesses in the construction and real estate industries) that they began took look into the brand, which came highly recommended by a family member who had invested in Wendy’s. In 1995, they opened their first location in Sarnia, ON. Today, Allison’s company, Affinity Food Group, has 12 Wendy’s locations across the province.
“It’s a great brand to be with,” Allison says. “Landlords acknowledge and recognize Wendy’s as an iconic brand and a strong brand. [Wendy’s is] well respected, and it’s a brand I can stand behind. That was important to me when we first started looking at franchising.”
As a multi-unit operator, Allison says finding the right team and supports are incredibly important. “When you’re a single-franchise owner, it’s possible you can wear a lot of hats. When you become a multi-unit owner, you can’t,” she says.
This success speaks to the power of sticking with what works while looking for new ways to innovate, an approach the brand also takes when it comes to franchisee partnerships.
In April, Wendy’s Canada launched ‘Own Your Opportunity,’ a franchisee recruitment initiative which aims to increase restaurant ownership among underrepresented populations. “We’re focused on providing opportunities for franchisees of different backgrounds [who] may not have all the financial assets, but they want to be in the business, they have the right approach,” says Hilder. This includes the Build-to-Suit development fund, which offers a turnkey option for candidates who might not otherwise be able to access the required capital for restaurant development.
“We’ve had 15 new franchisees join the Canadian system over the last three years, and we’re looking to recruit even more. It’s exciting to see the passion and interest in our brand,” Hilder points out.
Some of the key traits Wendy’s looks for in prospective franchisees are a desire to work with people, a level of financial acumen, and willingness to work hard. “We’ve got the tools and systems, we can train you to produce that consistent product that we would like to serve to customers. But you can’t always teach people to love working with people, whether that’s with customers or employees. And at the heart of the brand, that’s what makes you successful,” says Hilder.
Allison adds that those looking to go into franchising should be flexible, patient, committed, and have an entrepreneurial spirit. “You have to be creative,” she notes, adding that it’s important to “have some fun with it.”
“It’s always a big investment to get into franchising—into any business—but for any new person getting into business, I think franchising is a good choice, because there’s a support system there,” says Allison.
Once a franchisee is approved, they work closely with the brand’s development and real estate department to find the right location. They also complete an extensive training program (16 to 18 weeks) which teaches everything from the basics of working the sandwich station, right up to the ins and outs of multi-unit management.
After opening, franchisees work closely with an operations manager, and have an ongoing partnership to maintain standards and troubleshoot any challenges that arise, Hilder adds. The brand also has a number of franchise advisory groups that provide feedback and input through members across the country.
“I’m biased,” Hilder confesses with a grin, “But I think if you’re looking to go into the QSR space, certainly in the hamburger space, I believe we’re the best hamburger brand. At Wendy’s, we have a track record of growth, strong customer loyalty, and a great high-quality product.”
As technology shifts the landscape of QSR, an established system also has the power to pivot quickly and introduce new products like ordering kiosks or mobile apps. It can also navigate supply chains better than an individual restaurant, leveraging its purchasing power to find the highest quality product at the best cost. “In Canada, we’re in our tenth year of consistent sales growth,” Hilder notes.
For Allison, who has 27 years under her belt as a Wendy’s franchisee, it’s important to know mistakes and challenges may arise, but to go in clear-eyed and prepared. “As somebody coming to franchising, when you have a franchisor that really works with you, that is committed to your success, that helps train, educate, walks with you, it’s a real comfort for someone who wants to start into business,” she says.
Brand values
“I think the legacy of Dave Thomas is a really big part of this being a longstanding brand,” Allison says.
Thomas, known for his leadership skills, had five core values with which he ran the business, she notes: “Quality is our recipe,” “Do the right thing,” “Treat people with respect,” “Profit is not a dirty word,” and “Give something back.”
“Do the right thing,” has always resonated with Allison. “Sometimes you’re going to have decisions to make, and you don’t know [what to do]. I always fall back on ‘do the right thing,’ whether it’s an HR question or an ethics question, or anything.”
The brand “has a really strong leadership team in place now that is continuing to drive it forward,” she adds. “I think they’ve been really innovative in terms of design and food quality and expansion.”
It’s the “culture of people” that Hilder says has kept him working with Wendy’s for so many years. “There’s also the opportunity—constantly learning and growing. And I think that’s why I’m still here. It’s just always been exciting.”
Hilder led the brand’s expansion into the U.K. last year, part of the brand’s plan for further international expansion. There are also still plenty of opportunities for growth in Canada, particularly in smaller and mid-sized cities, in Quebec, and in growing communities across the rest of Canada.
Wendy’s has a long history and prides itself on constant evolution. But ultimately, success does come down to the food. When asked why Wendy’s has lasted so long in Canada, Hilder replies with a smile: “Great-tasting hamburgers made from 100 per cent fresh beef.”
“You’ve got to feel proud of what you serve,” he adds, “so you’ve gotta love the food. You know? Gotta love it.”
