Dive Brief:
- Wendy’s is starting to see results from its customer experience investments, which include new technology and updated training practices, even though earnings remain weak, according to executives on a Q3 2025 earnings call last week.
- Initiatives focused on people, training and hospitality at company-owned U.S. restaurants caused these locations’ same-store sales to outperform the system by 4%, according to CFO and interim CEO Ken Cook.
- The company plans to scale these measures and others across its restaurant system to elevate the customer experience and increase sales at franchised locations as well, according to Chief Accounting Officer Suzie Thuerk.
Dive Insight:
While Wendy’s customer experience investments show promise, the restaurant company is still under pressure to raise its average unit volume.
Wendy’s is “taking a hard look at underperforming restaurants in our system from both the financial and customer experience perspective” in a strategic review of its store portfolio, Cook said during the call. A “mid-single-digit percentage” of U.S. restaurants could end up closing as part of the effort, while other underperforming stores will be targeted for CX improvements.
“For some locations, it's about making operational changes or deploying technology,” Cook said. “For others, we're improving productivity by aligning operating hours to better match demand, particularly in the morning and late-night dayparts.”
The planned closures and changes come on the heels of a weak quarter. Global same-restaurant sales fell 3.7% year over year in the third quarter of 2025, according to a company earnings report. A 4.7% year-over-year same-restaurant sales decline in the U.S. offset a 3% year-over-year increase in the international market.
Wendy’s launched a customer segmentation study last month, and will use the feedback to clarify what is driving their purchasing decisions and refine communication of Wendy’s value across all touch points, according to Cook.
The company also launched enhanced training programs, including additional training for customer-facing employees focused on delivering better hospitality and experiences, according to Cook. The updated training has led to high customer satisfaction scores, particularly for accuracy and friendliness, which Cook highlighted as attributes that keep customers coming back.
Technology investments, including digital menu boards and AI-powered ordering technology, are contributing to better CX as well, according to Cook.
Wendy’s digital and delivery business saw upticks in scores for conversion, satisfaction and app store ratings this year, according to Cook. Cancellation rates, missing items and refunds are all on the decline. Cook credited a better app journey, the use of geolocation data to assist with pickup, and a partnership with DoorDash for the improvements.
