Problem Statement

Problem Statement

Wendy’s is having difficulty in expanding its business because of a large amount of competition and well-known fast-food companies. To address this competition, Wendy’s must open up in a new location.

Analysis

Technically, Wendy’s has a problem to expand its business internationally because there are a lot of fast food competitions these days, for example, McDonald’s. By opening up in a new location in South Africa, this will help Wendy’s business plan. In 2018, South Africa was known for the largest and most stable economy. Not only that, but South Africa also grew their income for the workers, besides many women were seen in the workforce. Thus, South Africa will be an excellent opportunity for Wendy’s expansion because people are very busy; consequently, they are forced to eat in fast food joints. The people have no time to prepare food themselves. In May 2018, South Africa was recognized for having the top ten fast-food companies that had opened a large amount of fast food in the country.

Solutions:

1. Wendy’s must take this chance to open up a new business in South Africa. A new location will be an excellent chance for the business to expand because a majority of people in South Africa spend on fast foods at least once a month because some of them are too busy with their work and do not have time to prepare meals themselves. Therefore, this is an excellent opportunity that Wendy’s should take advantage of to increase their competitiveness in the market.
2. Although the majority of people in South Africa are Christians, there are also Muslims and indigenous groups. However, this is an excellent chance for Wendy’s since they prepare a variety of meals. For instance, Muslims do not eat pork; consequently, Wendy’s will provide beef and chicken as an alternative to them. Also, Wendy’s can make some of its locations in South Africa Hallal fast-food restaurants, which will attract more Muslim customers. On the other side, to take care of the non-Muslim customers who still love their bacon, Wendy’s will retain some of the shops to take care of such a population and avoid losing them.

Recommendations:

It is recommended that for better performance, Wendy’s must think about South Africa as a potential market for the growth of its business. However, because South Africa’s fast food market has already been established and is already recognized as one of the top ten fast food with a total of 3600 joints in different locations in the country, it might be difficult for Wendy’s to gain popularity in a new area. However, Wendy’s should invest more in an advertisement to ensure a broader market is attracted. Also, the business can organize a grand opening where people are offered discounts or make attractive flyers and distribute them among people. Also, if people in Africa have Apps such as Yelp, the business can utilize the opportunity to use it to promote their business. For instance, by reviewing the restaurant on Yelp, customers can be offered a chicken burger for free.