The Wendy’s Co (NASDAQ:WEN) – Food for thought
The Wendy’s Co (NASDAQ:WEN) and many other U.S restaurants in the same league are trying every trick in the book to have diners reach deeper into their pockets. Today a large number of restaurant customers walk in with limited time offers, coupons and many other promotions, all of which are tactics to keep them coming back for more. Not necessarily because the chicken that is served up is free-range but because they are getting very money-conscious and thrifty. Fast-food chains absolutely everywhere have been drowning under the persistent and almost stagnant economic weakness. It has definitely taken a visible toll on middle and low-income diners who make up a large chunk of their customer base.
Why the downtrend?
The Wendy’s Co (NASDAQ:WEN) has been launching new foods and products to keep their customers happy. The large chicken, large hamburger and salad sales have been on the rise but the value-menu customers are becoming very scarce. There are several reasons why there seems to be a dip in demand for fast food. This particular segment is not all about fries, burgers and pizzas. People are getting more conscious about obesity and so that Big Mac or the Mc Rib will still be eaten on occasion but pleasure will be laced with guilt as well.
The “Pink Slime” issue
Another major concern with meat-eaters has been that of “pink slime”. Frankly, it’s as unhealthy as its sounds. If you have ever relished a burger at a home barbecue or even at a restaurant, there is a good chance that you have consumed pink slime meat. Processed beef fat and trimming scraps are treated with ammonia and this then goes into the burger patties and other ground beef that you eat. Does it sound anywhere close to appetizing? Well, it doesn’t and it isn’t healthy either.
Wendy’s Co (NASDAQ:WEN)’s very quickly raised its hand and said that it has never used the pink slime even before the scare. The same nightmare that haunted beef producers has the fast-food chains running scared as well. Maybe the time for healthy food is ripe and it’s all good going for the consumer if the food businesses went about their business with a fresher outlook.