Wendy’s is permanently closing the doors of 140 locations after shutting down 100 more locations earlier in the year…

And while this might be a tell-tale sign of hardship at any other company, this restaurant chain is playing the long game. 

Here’s what you need to know…

The Future Of Wendy’s Locations

At the beginning of November, when Wendy’s announced the closure of 140 locations…

The company’s shares rose 3.5%.

BUT WHAT’S SO GOOD ABOUT A COMPANY SHUTTING DOWN MORE STORES? 

Turns out, Wendy’s is closing these locations to replace them with more modern and up-to-date stores. 

According to Wendy’s CEO, Kirk Tanner…

The closing stores were underperforming compared to their counterparts. He states in a conference call, 

“THEY’RE JUST IN LOCATIONS THAT DON’T BUILD OUR BRANDS… YOU LOOK AT A BRAND THAT’S 55 YEARS OLD AND SOME OF THOSE RESTAURANTS ARE QUITE OUT OF DATE.”

These Wendy’s location closures will be replaced by the 250 new locations the company promised to open at the beginning of the year. 

Despite the closures, this strategy might work out in the long run. This year, many fast food chains have struggled to bring back consistent customers…

Due to higher prices and skyrocketing restaurant inflation. 

Ultimately, the closure of 140 Wendy’s locations proves one thing…

In order to keep growing your company, sometimes you have to close some doors. 

Be Great, 

GCTV Staff

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