Wendy’s is diving into the delivery service industry head first.
The popular fast food chain announced plans to open 700 ghost kitchens in the United States, Canada, and New Zealand, exclusively designed for delivery orders only, USA Today reports.
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On Wednesday, Wendy’s CEO Todd Penegor told the outlet that the move is aimed at increasing business in urban areas where the company is dominated by local fast-food competitors. The new kitchens, which will only be used to prepare online orders, will eliminate having their usual dining rooms and storefronts.
Wendy's hopes to launch the 700 new locations as early as 2025, with 50 operating delivery kitchens opened by the end of the year, a press release states.
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"The demand for convenient delivery solutions means we must look for opportunities beyond our traditional restaurant formats, especially in dense urban areas," said Abigail Pringle, Wendy's President, International and Chief Development Officer.
While some restaurant chains use ghost kitchens to replace the need for third-party delivery services like UberEats and DoorDash, the outlet says Wendy’s will likely continue to rely on these partnerships.
The only thing customers might notice is hotter Baconators and fresher Frosties.
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Penegor says the launch comes after the company found success with the experiment business model in Canada amid rising demand for online ordering during COVID-19.
The coronavirus pandemic and lockdown restrictions are continuing to have a large impact on the fast-casual and fast-food dining industry, with many fan-favorite chain restaurants facing the threat of closing its doors.
According to a report from the National Restaurant Association, some neighborhood restaurants are still struggling to recover from losses they experienced throughout shutdowns and regulations that prevented restaurants from being fully open, including AppleBees, Ruby Tuesdays, Hooters, and Old Counttry Buffet.
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