Wendy’s is a fast food chain that is known for its square hamburgers, Frosty desserts, and sea salt fries. The company was founded in 1969 by Dave Thomas in Columbus, Ohio. Wendy’s is the third-largest hamburger fast-food chain in the world with 6,500 locations, behind McDonald’s and Burger King.
Wendy’s closed its doors on March 15th, 2020 due to the outbreak of COVID-19. The company released a statement saying “The health and safety of our team members and guests is our top priority. We are taking proactive steps to help protect our employees and customers.”
Many people are wondering why Wendy’s decided to close its doors while other fast food chains remain open. It is most likely because Wendy’s relies heavily on dine-in business.
About 60 percent of Wendy’s revenue comes from people eating inside the restaurant, while only 20 percent comes from drive-thru sales. This is compared to McDonald’s, which gets 70 percent of its revenue from the drive-thru.
Wendy’s closing its doors will have a significant impact on the company’s bottom line. In 2019, Wendy’s generated $1.4 billion in revenue from company-operated restaurants in North America.
This accounted for 97 percent of the company’s total revenue. With all company-operated restaurants closed, Wendy’s will likely see a sharp decline in revenue in the coming months.
Why is Wendy’s closed? The answer is most likely due to the outbreak of COVID-19 and the fact that Wendy’s relies heavily on dine-in business. This will have a significant impact on the company’s bottom line as 97 percent of their total revenue comes from company-operated restaurants in North America that are now closed.
