The Burger Wars are Here! Wendy's Channelling the Heat in its Market Debut
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The Burger Wars have officially arrived in Australia as the third-largest burger chain in the world, Wendy's, has inked a franchise deal to open 200 outlets around the country.
Earlier this year, when news broke of the American fast food giant’s plans to pop up Down Under, Australian fast food pioneer and Hungry Jack’s founder Jack Cowin was sceptical.
‘They don't realise that labour rates in our industry here are well over AUD20 an hour, where it's still USD7.25 (AUD11.15) an hour in the US, so that's a big adjustment, and the property prices for restaurant uses are considerably higher here too,’ Mr Cowin said.
He pointed out in the Australian Financial Review that many companies don’t realise the big differences between the US and Australia.
But Wendy’s isn’t backing down. President and Chief Development Officer Abigail Pringle fired back–she took Mr Cowin’s comments as 'flattery' and promised that the burger lovers of Australia would be 'cooking up an experience that others can’t and where frankly others may have let them down'.
However, is there room for Wendy’s in a market already dominated by McDonald’s? Data from Roy Morgan in 2020 shows McDonald’s clear lead in the Australian fast food market with an average of eight million diners a month–more than twice as many diners as Hungry Jack's and a million more than KFC.
Add to this the local success of Grill’d, with over 160 restaurants across the country, and Betty’s Burgers, with plans to add another 100 to their existing 50.
Grill’d founder Simon Crowe doubts the American Giant's impact in Australia. He told reporters in March that companies coming here often underestimate the Australian consumer.
Nonetheless, Pringle claims that the Australian burger market is 'ripe for disruption' and vows to deliver on quality despite an 'affordable price'.
'Don't you want a great quality experience, fresh ingredients, Australian ingredients, and you want it at an affordable price?' Pringle said.
She added, 'We don't cut corners. That's why our hamburgers are square.'
Wendy’s opened its first Australian store in Melbourne in 1982 and had 11 locations before collapsing in 1985 with $8 million in debt. That debt was then picked up by Mr. Cowin for just $2 million before the opening of his Hungry Jack’s empire.
Now the American Chain is set for a return, with Pringle predicting that Australians will eat their first square burgers sometime in 2025.
But will Wendy’s make a lasting mark on the Australian market, or will the venture simply fade away into the annals of fast food history?
Stay tuned for more updates, in the meantime, let us know your thoughts in the comments below!
Earlier this year, when news broke of the American fast food giant’s plans to pop up Down Under, Australian fast food pioneer and Hungry Jack’s founder Jack Cowin was sceptical.
‘They don't realise that labour rates in our industry here are well over AUD20 an hour, where it's still USD7.25 (AUD11.15) an hour in the US, so that's a big adjustment, and the property prices for restaurant uses are considerably higher here too,’ Mr Cowin said.
The American fast food giant Wendy’s, is set to arrive in Australia by 2025. But Hungry Jack founder Jack Cowin is sceptical. Image source: Eat This, Not That!/Meaghan Cameron.
He pointed out in the Australian Financial Review that many companies don’t realise the big differences between the US and Australia.
But Wendy’s isn’t backing down. President and Chief Development Officer Abigail Pringle fired back–she took Mr Cowin’s comments as 'flattery' and promised that the burger lovers of Australia would be 'cooking up an experience that others can’t and where frankly others may have let them down'.
However, is there room for Wendy’s in a market already dominated by McDonald’s? Data from Roy Morgan in 2020 shows McDonald’s clear lead in the Australian fast food market with an average of eight million diners a month–more than twice as many diners as Hungry Jack's and a million more than KFC.
Add to this the local success of Grill’d, with over 160 restaurants across the country, and Betty’s Burgers, with plans to add another 100 to their existing 50.
Grill’d founder Simon Crowe doubts the American Giant's impact in Australia. He told reporters in March that companies coming here often underestimate the Australian consumer.
Nonetheless, Pringle claims that the Australian burger market is 'ripe for disruption' and vows to deliver on quality despite an 'affordable price'.
'Don't you want a great quality experience, fresh ingredients, Australian ingredients, and you want it at an affordable price?' Pringle said.
She added, 'We don't cut corners. That's why our hamburgers are square.'
Wendy’s opened its first Australian store in Melbourne in 1982 and had 11 locations before collapsing in 1985 with $8 million in debt. That debt was then picked up by Mr. Cowin for just $2 million before the opening of his Hungry Jack’s empire.
Now the American Chain is set for a return, with Pringle predicting that Australians will eat their first square burgers sometime in 2025.
Will Wendy’s survive the Australian market this time around? Image source: flickr.
But will Wendy’s make a lasting mark on the Australian market, or will the venture simply fade away into the annals of fast food history?
Stay tuned for more updates, in the meantime, let us know your thoughts in the comments below!
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