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wendy’s

Is Wendy’s Winning or Burger King Losing?

All of a sudden, everyone is talking about the Burger Wars again.  Nothing’s actually changed yet—McDonald’s is still the undisputed leader of the pack, with Burger King in the number two spot.  But things are about to change.

The Wall Street Journal revealed that Wendy’s is poised to knock the King off his throne. This is big news, and lots of people have theories about how it happened. A lot has been said about menu revamps: Wendy’s was both timely and well-executed, while Burger King’s lacks both cohesion and relevance, especially in terms of healthier offerings.

While Wendy’s has gone after the upscale end of the fast food market, Burger King is routinely slammed for the poor quality of their food.  Wendy’s has capitalized on its legacy relationship with their Brand Lovers by running campaigns featuring the chain’s namesake, Wendy Thomas. Burger King, on the other hand, only recently stopped an off-putting and unsettling campaign featuring a creepy cartoon version of the King that alienated more customers than it attracted.

There’s a lot of wisdom here.  Every theory captures part of the reason Wendy’s star is on the rise, while Burger King is declining. If we want more than a partial understanding, we need to combine these theories with the type of deeper understanding that Brand Modeling provides.

Connecting With Your Customer

To achieve and maintain the number two position in the massive fast food market is a huge challenge. Brand Modeling teaches us that the only way an organization could be successful in such an endeavor is to develop a deep understanding of who their best customers are. Armed with this understanding, companies can then successfully anticipate their customer’s needs and meet them in a way that surpasses expectations.  This process strengthens the relationship between the customer and the brand.

From the Wall Street Journal, we hear how Wendy’s has tried to deepen its understanding of its customer base. Wendy’s spent 18 months interviewing 10,000 consumers. “They told us they liked the idea of fresh foods with as little processing as possible and ingredients they were familiar with,” said Denny Lynch, Wendy’s spokesman. This understanding prompted Wendy’s to change their trademark square burger shape, rounding the corners to create a less-processed look.  Understanding the value of freshness and familiarity certainly influenced the creation of a familiar tagline: You know when it’s real.

The chain clearly understands that the public is hungry for more than a burger. They have deeper needs to be met, emotional and subconscious needs. We see Wendy’s meeting the need for reassurance and tradition. The emphasis on fresh and familiar ingredients is more than a food-wish-list; the deeper message is about safety and home.

In a time when its best customers are facing economic upheaval and financial uncertainty (albeit to a lesser degree than Burger King’s best customers, the young men who are suffering disproportionate rates of unemployment), Wendy’s is telling a story of family and continuity, honoring tradition while embracing innovation. Wendy’s is winning because it’s telling its Brand Lovers the story they want to hear.  There’s sea salt on the fries, and it comes with a side order of hope and optimism.

For Burger King, this is another in a string of wake-up calls.  Will it work? If BK can reconnect with their Brand Lovers successfully, hope remains. But time is of the essence. The fast food giant will have to move quickly indeed.