The Wendy’s burger wars have always been fought in earnest, but the battle is particularly tough this year because of inflation and job losses. Prices are going up, and consumers are growing more skittish about spending money, especially when it comes to dining out.
You could say the bane of these spendthrift times has been fast-food restaurants — or, in industry speak, quick-service restaurants (QSRs). And burger chains have been particularly hard hit, including Wendy’s, whose U.S. foot traffic has plunged as consumers re-evaluate their budgets.
Wendy’s was never supposed to be the cheap fast food. Its decision to emphasize quality, even at a higher price, was an intentional one that helped the chain take business from competitors like McDonald’s and Burger King.
But that position is now working against it as the niche of its traditional rivals are squeezed by casual dining chains, above all Chili’s, slashing prices to try and boost traffic and appeal to consumers watching their spending — damaging Wendy’s moat.
