I really like Wendy's. I really miss Dave Thomas. And right now, I'm wondering if Dave is pondering the way lost by his daughter's namesake, Wendy's. More romantically, perhaps he is sitting upon a cloud craving a burger and wondering what on earth happened to the brand he founded and represented iconically before his unfortunate demise on January 8th, 2002. Since then, he has seen the fast food chain flounder from one relatively unsuccessful positioning and advertising campaign to another before landing on the latest introduced last year... "It's Waaaay Better Than Fast Food. It's Wendy's" (with 4 aaaas for emphaaaasis).
What sparked this post was a simple comment my marketing director/ad agency owner/fabulous mother/wife made last night right after one of their commercials aired. I quote, "Why would they denigrate their category? Everyone knows they're a fast food chain." Hmmm. Good point. Hadn't thought of that. And I'm thinking Dave would agree. After all, consumers these days are pretty savvy and well, they may end up wondering the same thing. Of course. Wendy's isn't really saying they're not a fast food choice. I actually get what they're trying to do. But hey - first impressions. Maybe, just maybe they're being too clever and confusing the issue.
Before I continue, I would like to state for the record that I really enjoy Wendy's burgers. In fact, I have enduring memories of piling into a car at high school lunch with my pals and heading to Wendy's. I remember standing in line and watching them cook up my order fresh (this would be around 1979). Of course that doesn't happen any more, but the grub's still pretty good. I also like this campaign better than the goofy guys in red pigtails effort before it. But I'm also frustrated that my favorite fast food hamburger joint has had such a hard time recapturing the glory Days of Dave. Sure, the entire restaurant industry in every category is suffering right now. And Wendy's, like most other chains, is promoting recession-busting bundles and deals (3conomics, etc.). But I can't help thinking that they still haven't been able to differentiate their brand the way Dave did. They can't live on discounting and LTOs alone. From a branding standpoint, everything they do feels derivative and me-too to me. In fact, I sometimes feel like they're trying to outburger Burger King with their positioning and creative. Regardless, where's the clear, out-and-out differentiation of Wendy's? They had it once, they don't now (in my humble opinion).
Here's how Wendy's 2008 press release described the Waaaay Better effort at inception (my comments in italic):
"Our quality food will be the hero of our advertising once again. This evolution of our advertising approach is based on extensive consumer research over the last eight months, working in close collaboration with our agency partners and our franchise advertising committee," Anderson said. "This effort has been driven by a clear understanding of our brand strategy and hallmarks of quality, freshness and honesty."
I'm sure they researched the heck out of it, but I think they missed the positioning. It's still fast food any way you eat it. And by the way, an awful lot of people like, no LOVE fast food! I think Dave would agree that they maybe should have gone back to their roots to make it clear that they do fast food better... something like, "fast food the way it used to be, fresh and good." I'm not saying that's the right line, but at least it's clearer, doesn't require as much thought from consumers and goes directly back to Wendy's roots. Hey, why not elevate the category, rather than imply you're better AND something else (though what that is is obviously not entirely clear). It's tough to fool the masses these days.
"The Wendy icon stands for wholesome authenticity and honest quality," said Jon Bond, chairman of kirshenbaum bond + partners. "It's one of the most powerful, under-used assets in the consumer world today."
I have tremendous respect for kirshenbaum bond + partners. Unfortunately, I don't think Wendy can ever replace Dave, especially as a previously under-used asset now animated. Most of us have a tough enough time living up to our father's standards, but at least we're not cartoons. Maybe Kirshenbaum's research revealed something different, but I (and I suspect most) don't know Wendy from a logo - no real equity, history, charachter, personality or story beyond daughter and artwork.
I'm not going to spend hours analyzing this, and I truly understand the difficulty Wendy's and its agencies have faced in bringing this brand back to the place Dave left it when he left us, because Fresh Fuel has restaurant clients too. But my wife got me thinking and I'd love to know what you think. Dave, if you're out there, leave a comment. And please, if you can, don't ever let them bring you back to life like a reanimated Orville Redenbacher... even as a last resort.
For more on how leaders affect company brands (Dave Thomas in particular), check out Megan's great post "Leading Advantages: Face To Face With Dave Thomas and Wendy's."



I miss Dave, too. I also miss their old product line-up. Their pita wraps were yummy and their limited-time sandwiches used to be much better. Wendy's is still good, but it's not as special as it used to be. And let's bring back that $2.99 combo!
Posted by: Megan | January 15, 2009 at 12:44 PM
Neal, it's the story behind those 2007 numbers that counts. Actually, I think Dave would be rather appalled at the pain behind them for Wendy's and his family. Here's what Dave's daughter Pam had to say after After Triarc (owner of Arby's) finally succeeded in buying the company in 2008:
"It's a very sad day for Wendy's, and our family. We just didn't think this would be the outcome," said Farber, 53.
If her father were alive to hear news of the buyout, "he would not be amused," she said. Farber said she had just gotten off the phone with her sister Wendy, 46, the company's namesake.
"She's feeling horrible. She just is devastated," Farber said.
Prior to the sale, Wendy's had been struggling mightily to actually hold on the the number 3 spot they attained with Dave on camera and they have been ever since. Regardless of the numbers and a turnaround plan initiated in early '07, they have not been able to define or differentiate themselves in the market and are going backwards. In fact, 1st Q earnings in 2008 were down 72% to $4.1 million or 5 cents a share versus $14.1 million or 15 cents a share in March ,07. Add to that rebellions of the redhead masses against their last ad campaign, franchisee discord and lawsuits and, most recently, the apparent failure of their second foray into breakfast and you have a brand with big problems. Pretty soon big regional players like Carl's Jr and Jack In The Box will be bumping them down the list to #5, and they know it.
Of course, it's impossible to say that they would be any better off if Dave were still alive, involved and on TV. However, when he was involved and on TV, over 90% of Americans knew who he was and knew exactly what Wendy's was and what it promised and delivered as a brand. Since then, they have positioned, repositioned and positioned again and, other than the logo, nobody really knows them anymore. Like I said, I like the new commercials, but I think you could replace the Wendy's logo with BK's, change a few words and the spots would work for them too. The difference is, BK has figured out who they are, McDonald's has pretty much always known, and both appear to be well-positioned to weather the economy, continue to do well and stay on top. I like Wendy's. I still miss Dave!
RLT
Posted by: Russ Tate | January 15, 2009 at 09:08 AM
Although I have to say you are dead on about your wife!
Posted by: Neal | January 14, 2009 at 05:22 PM
Bad ads or not I'm sure Dave would love the current sales volume! Don't forget he sold out long before he died.
2007 Systemwide Sales
Rank Chain Sales ($Mil)
1 McDonald’s $28,666.1
2 Burger King (U.S. & Canada) $8,781.0
3 Wendy’s1 $7,956.0
4 Sonic Drive-In $3,608.8
5 Jack in the Box1 $2,975.0
6 Dairy Queen $2,500.0
7 Hardee’s $1,802.5
8 Carl’s Jr. $1,448.7
9 Whataburger $1,100.6
10 Steak ‘n Shake1 $740.0
11 Checkers Drive-In/Rally’s $649.0
12 Culver’s $590.0
13 White Castle $539.9
14 Krystal $440.6
15 In-N-Out Burger1 $400.0
16 Fuddruckers $320.0
Posted by: Neal | January 14, 2009 at 05:18 PM