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· Posted on
February 21, 2024

Watch out Ron McDonald and Colonel Sanders: Wendy's plans to take on the big dogs of fast food in Australia

Wendy's closed down in Australia in 1986... now, it's back to steal fast-food market share from the big dogs at Maccas, KFC, and Hungry Jacks.

What's the key learning?

  • Wendy's is looking to open hundreds of stores in Australia - they plan to buy the land, hand over their secret recipes and branding... and bring in franchisees.
  • The real-estate of fast food is where fast food companies can make more money from their property holdings than their stores.
  • Fast-food brands will find the land, purchase the property, construct the building and hand over the keys to a franchisee, which will pay franchise fees as well as rent for the property.

👉 Background: If you’ve been to America before, you’ve probably seen or eaten at a Wendy's - because there are more than 6,000 Wendy's stores in the US.

👉 What happened: Wendy’s actually opened in Australia in the 1970’s and then shut in 1986. But now, Wendy's is back to steal fast-food market share from the big dogs at Maccas, KFC and Hungry Jacks.

👉 What else: Wendy's is looking to open hundreds of stores in Australia - they plan to buy the land, hand over their secret recipes and branding… and bring in franchisees. The old fast-food-property-mogul-model.

What's the key learning?

💡 Welcome to the real-estate of fast food. That’s where fast food companies can make more money from their property holdings than their stores.

💡 Here’s how it works: Fast-food brands will find the land, purchase the property, construct the building and hand over the keys to a franchisee. That franchisee will pay franchise fees as well as rent for the property.

💡As an example, McDonald’s owns thousands of iconic pieces of real estate around the globe. Since it launched, it had a clear vision of using property to accrue wealth, not just burger sales. And Wendy’s has a similar model that they have already used in the US, UK and looking likely in Australia too.

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