Burger chain Wendy’s announced that it plans to begin closing hundreds of restaurants during the fourth quarter, with a view to improving its performance.
The announcement was made by Ken Cook, interim CEO of Wendy’s, during a conference call with investors, in which he noted that he expects to close less than 10% of the stores.
Although Cook did not offer many details, he implied that The closure will focus on the most obsolete or poorly performing restaurantswhich will help improve traffic and profitability at the rest of its restaurants in the US.
Currently, Wendy’s has just over 6,000 stores. This new round of closures adds to the 240 Wendy’s stores that ceased operations in the United States in 2024 due to its obsolescence.
El Nuevo Día investigated whether Wendy’s in Puerto Rico are in the group of those that are going to close.
Jorge Colón Gerena, chief executive officer (CEO) of Grupo Colón Gerena, the company that holds the rights to the franchise in Puerto Rico, indicated that, For now, it does not plan to cease operations in any of its locations.
“In Puerto Rico, thanks to the tireless work of our team and the strategy of supporting locally grown products, we have the public’s favor, which has allowed us to maintain sustained growth, giving great strength to the brand,” said the businessman.
“With 85 restaurants throughout Puerto Rico, we stand out for being the only ones that provide fresh meat, as well as other local products, which favorably impact the economy,” added Colón Gerena.
Local warning
However, The CEO of Grupo Colón Gerena maintained that like the rest of the industry, his company fights against government pressures and regulations.
“As we reflect on the brand’s situation in the United States, we face each day with caution, in the face of government pressures and regulations, which continue to make it difficult to operate, not only in our restaurants, but across the entire industry.”
“If the unstoppable increase in operational costs continues, we must responsibly recognize that we are faced with the possibility of facing the same situation that the brand is experiencing in the United States”warned Colón Gerena.
“Every day it is more difficult to operate our businesses and given the weight of regulations, we are an industry that is suffering the onslaught of high operational costs. Small, medium and large entrepreneurs are continually forced to close their operations, since it is impossible to transfer the high costs of operating their businesses to the consumer,” lamented the renowned businessman.
“At this time we must join forces to reduce government regulations and pressures that are strangling one of the industries that contributes the most to the country. We call to work together to create tools that benefit entrepreneurs at all levels, who are a vital part of the productive sector that adds to the development of Puerto Rico,” added Colón Gerena.
Meanwhile, Cook said that the current Wendy’s system in the United States has some restaurants that do not elevate the brand and “are a drag from the point of view of the financial results of the franchisees. The objective is to address and fix those restaurants,” Cook said during a conference call with investors.
