Software Helps Wendy's Evaluate Their Strategic Initiatives
By Christine Kern, contributing writer
Wendy’s agrees to license APT’s Test & Learn software for another three years
In a press release, Wendy’s® has announced that they will continue licensing APT’s Test & Learn software for another three years, and will use the software to test strategic initiatives in menu changes, remodels, marketing, pricing, and operations across its system of more than 6,500 company and franchise-operated restaurants.
The initiative comes as restaurants and restaurant organizations are striving to determine whether data-drive innovation is succeeding. Consumers have been exposed to a great deal of innovation in the guise of new menu items, restaurant redesigns, and new technologies, and this software hopes to illuminate whether or not the investments are paying off. Wendy’s®, the third-largest quick-service hamburger company, joins the ranks of dozens of industry-leading restaurant organizations across four continents utilizing the software, including Starbucks, SUBWAY, Panera, Costa, and McDonald’s APMEA.
Wendy’s® will use the software to test strategic initiatives in menu changes, remodels, marketing, pricing, and operations across its system of more than 6,500 company and franchise-operated restaurants.
The expanded relationship will also enable the chain to continue to understand the incremental impact of each new innovative idea, like a significant menu change or capital investment, before rolling it out chain-wide.
“As quick service restaurants continue to experiment with new digital technologies, deal with rising food and labor costs, and more, executives wrestle with various strategic and tactical questions,” said APT Senior Vice President Will Weidman. “Should we invest in digital menu boards? How many team members should we have in a restaurant at a given time? How much capital should we invest in restaurant refits? Should we raise prices on some menu items? The right answers are unknown until they are tested in the real world.”
Weidman added, “Evaluating the effect of tests on the business can be extremely challenging. Uncontrollable factors, including changes in weather, competitor actions, and socioeconomic conditions all impact the outcome of new programs. As such, isolating the impact of a program amidst all of this noise is challenging, making it difficult for restaurants to answer the question: did our initiative really work?”
Working directly with senior leadership at restaurant companies, like Wendy’s®, to understand the company’s business objectives and goals for customer satisfaction and financial performance, APT creates tests that range from small menu changes, such as removing an underperforming menu item, to bold transformative initiatives, such as introducing a new value menu, changing service style, or large increases or decreases in marketing investments.
“The decision to continue our relationship with APT was an easy one,” said Leigh Burnside, Vice President of Finance & Planning at Wendy’s®. “Test & Learn continues to be a critical part of our organizational decision-making process as we continually seek to improve guest satisfaction and shareholder value. Wendy’s® has used the APT software to evaluate the effectiveness of many initiatives. After an initiative is evaluated through consumer research, we use the Test & Learn software to analyze it in scientific in-market tests. The software automatically shows us whether the initiative generated incremental visits or simply cannibalized existing business.”