Where’s the Beef?
Now I have to admit, I’m not a big fan of fast food these days. At least, I’m not as big of a fan now as I was about 10 years ago. You see, I was really big because of all that fast food so I’ve practically cut it out of my diet. Now I eat fast food only when I have prepared no food and don’t plan on eating anything at home for several hours. And when I do eat fast food, it’s typically a burger with no fries and a water– something to hold me over for a few hours and not fill me up.
With that said, I am still amazed at how one of the fast food giants is missing the boat when it comes to advertising and customer loyalty. In 2004, Wendy’s, the longtime #3 restaurant chain in the fast food wars, was finally catching up to second-ranked Burger King in sales. The main reason for this increase? According to reports that summer, Wendy’s healthier, adult-themed fare was selling better than greasy cheeseburgers from Burger King. Keep in mind 2004 was the year of the Atkins diet, when fast food chains scurried to offer healthier fare in hopes of keeping carb-minded customers coming through the doors and drive-thrus.
But unlike their competitors, Wendy’s had the distinct advantage of already having salads, baked potatoes, chili, and other alternatives to the fast food menu when the carb craze hit. For years Wendy’s had positioned itself as the “adult” fast food place thanks to folksy founder Dave Thomas‘ appearance in their ads until his death in 2001. Thomas’ whole idea behind Wendy’s was to make a tastier, better, and fresher burger than McDonalds, Burger King, White Castle, and other chains that exploded in popularity in the 1960s. Even after Thomas’ death, the folksy feel and laid back atmosphere of cheap but good burgers and fries drew in older customers who didn’t like the noise or grease of a McDonalds or Burger King. Then, a few funny things happened.
The carb craze died in 2005, and fast food customers went back to their old ways of purchasing double quarter-pounders with cheese and salty grease-laiden fries from the Golden Arches. Burger King rolled out the “Enormous Monstrous Sandwich” for breakfast, an egg, cheese, and bacon concoction that amazingly was unhealthier than a Whopper. Sales at Wendy’s plummeted, and ownership panicked. So what to do? Wendy’s made the big blunder (in my opinion) of trying to go after the big boys and their 18-34 year-old consumers, while dumping the older customers who liked the folksy experience of Wendy’s.
Wendy’s launched the “Do What Tastes Right” campaign centered around the instrumental portion of the Violent Femmes‘ 1981 hit “Blister in the Sun”. That will CERTAINLY get 18-34 year-olds to buy the burgers! Eh… wrong. Perhaps it was Wendy’s selection of a song about masturbation that turned these youngsters off, but it didn’t work. Sales remained stagnant as Wendy’s went with a new ad campaign, and a new ad agency, going with the “Wendy’s, That’s Right” pitch. The pitch goes back to basics in advertising “fresh, not frozen” hamburger patties which has always been a strong sales point for decades. But the TV commercials feature a grown man wearing a red wig (like Wendy… get it?) doing bizarre things like kicking trees or playing the role of an aborigine when he realizes he wants a fresh hamburger.
In some aspects the commercial is doing well in it’s attempts to get sales going in the stores. Wendy’s recently reported a modest second-quarter gain, yet in April it announced it was looking for a buyer, and in June it lowered its earnings outlook. To me it all comes down to advertising. The new ads are quirky, and are a hit on the internet where most 18-34 year-olds gather these days. But it seems to me Wendy’s has overlooked the older consumer (we’ll just say 35+ for demographic purposes) who doesn’t want the quirkiness of a 20-something lifestyle mixed in with his or her burger. They want what Wendy’s has always given them– a better, tastier burger than what McDonalds or Burger King can offer. No Happy Meals, no goofy big-headed king dancing to his BBQ Bacon Burger concoction, just a damn good burger please. And give me some options too, such as the salads, potatoes, and chili.
Wendy’s may make a little gain in the 18-34 year-old demographic with these new ads and an upcoming new breakfast menu, but even 18-34 year-olds grow up and I’m not so sure they’ll be coming back to Wendy’s when they just want good food without the bells and whistles thrown at the younger crowd going to McDonalds and Burger King. I give credit to Wendy’s for trying to drum up sales by rocking the boat, but by doing so the older customer is getting thrown overboard. It may be best for the healthy 37-year-old business to stick to what’s made it last so long– catering to those who are the same age or just a bit older.
