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McDonald’s Answers Wendy’s Big Menu Challenge

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Wendy’ (WEN) – Get Wendy’s Company Report A classic marketing strategy was used when launching the breakfast menu. It’s targeting leaders in the space and building marketing around saying it has a better product.

The company took out a billboard in New York’s Times Square to make fun of McDonald’s (MCD) – Get the McDonald’s Corporation Report Serving breakfast, it also ran a TV ad that portrayed its competitors as a bland, outdated menu that was neither fresh nor inspired. The company made it clear that it was trying to oust the leader through comments from Chief Marketing Officer Carl Loredo, according to TheDrum.com.

“So far, some others in the category have disappointed breakfast consumers by offering breakfast sandwiches that include frozen, folded eggs and pre-cooked bacon. Today, that’s all changed,” he said. “We’re known for high quality food and breakfast is no exception. Try anything we like – we’re sure this menu will become your favourite.”

It’s not subtle. Wendy called McDonald’s and challenged. It’s a bold attempt to grab attention at the expense of established rivals.

It works and it doesn’t work.

McDonald’s tackles breakfast challenge

McMuffin, McGriddle and the much-loved Big Breakfast committed all the crimes Wendy mentions in his ad. However, consumers don’t seem to care. McDonald’s may use pre-cooked, less-than-fresh ingredients, but they do it in a familiar way that people like.

Wendy’s thinks it’s cheating competitors with a perception problem with its breakfast menu, but it’s actually doing just the opposite. The chain’s ads did succeed in letting consumers know that it offers breakfast, but they also reminded them that McDonald’s also serves breakfast.

McDonald’s CEO Christopher Kempczinski didn’t name his company’s competitors, but he made it clear in a late 2021 earnings call that Wendy’s efforts to topple the market leader had failed.

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“Our breakfast business is doing well,” he said. “In the fourth quarter, our breakfast business has grown. We have seen a strong performance in the bakery. So our expectation is breakfast, and we have been satisfied even with the introduction of One of our competitors, how we got through 2020, also didn’t have a big impact on our breakfast business.”

Wendy’s tried to challenge for the title, and Kempczinski made it clear that those efforts didn’t work. However, failure to overthrow a leader does not mean failure.

Wendy becomes breakfast leader

Fast food breakfasts may seem like a winner-take-all, but it’s not. This is not a sport where one team wins and the other loses. McDonald’s may have defended its crown, but Wendy’s has also emerged as a worthy contender.

“We continue to be very pleased with our breakfast business, which delivered strong growth in the fourth quarter, peaking at over 8.5% of U.S. sales and averaging about 8% this quarter,” Wendy CEO Todd said. Penegor on its chain’s fourth-quarter earnings call. “This growth was primarily driven by successful promotions that not only drove our significant breakfast time trial, as evidenced by the significant increase in buyer penetration during the quarter, but also increased overall breakfast awareness to record levels. “

The CEO made it clear that Wendy’s has established a foothold in the morning and is expected to continue growing.

“Looking back at the full year, our breakfast sales were up about 25%, making significant progress,” he said. “We achieved this through several successful test drive campaigns, a continued increase in customer repeat rates, an extra two months into the day, and support for a $25 million incremental investment in breakfast ads.”

Wendy’s builds on this in 2022 and plans to expand these efforts throughout the rest of the year.

Penegor added: “Through 2022, we will support growth through menu innovations such as our new craving hot honey chicken biscuits and compelling test drive offers to further ingrained habits, which we will add to our “We believe our breakfast business in the U.S. will grow by about 10% to 20% through 2022, and by year-end, average breakfast sales per restaurant will be about 3,000 to 3,500 per week. Dollar.”

Breakfast Bacon has yet to take down McMuffin, but Wendy has established herself in the morning.

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