Wendy’s (WEN) – Get Wendy’s Company Report giveth and Wendy’s taketh away.
The chan brought back its $5 Biggie Bag earlier this week (April 12) and has now very quietly made a major change to its beloved 4 for $4 deal.
It’s a move that’s not likely to be popular with its customers.
Previously when ordering a 4 for $4, customers could choose from a Jr. Bacon Cheeseburger, the Crispy Chicken sandwich, the Doublestack (which has is a Jr. Cheeseburger with two patties), or a Jr. Cheeseburger.
Now, the fast-food chain only offers the 4 for $4 with a Jr. Cheeseburger.
That change was not announced, but it is reflected on the Wendy’s website under the Meal Deals section.
Why Is Wendy’s Doing This?
The 4 four $4 previously came with a choice of sandwiches. That made it very popular since you could swap out the single cheeseburger for a double for no extra charge (who would order the single?).
The core 4 four $4, and the only one now remaining, includes a Jr. Cheeseburger, a four-piece chicken nuggets (crispy or spicy), a Jr. Fry, and a value drink.
Now, the chain has added the $5 Biggie Bag, which includes “a Jr. Bacon Cheeseburger, a Double Stack, or a Crispy Chicken BLT to go with your 4 PC. Nugg, small fry, and small drink.”
The move has been met with some derision online, though it was not announced, so it will take time for the chain’s customers to know it happened.
By not fully eliminating the 4 for $4, Wendy’s gets to keep that price point while making it more cost-effective. That sort of forces customers who don’t want a Jr. Cheeseburger into the Biggie Bag which costs $1 more, and does come with slightly more fries and a larger soda.
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You can purchase a $5 Biggie Bag online, via the Wendy’s mobile app, or in-restaurant at participating locations nationwide for a limited time.
“As an added bonus, from April 12 to April 24, 2022 fans get 3x Bonus Rewards points on all Wendy’s Biggie Bag purchases,” Chewboom reported.
Wendy’s Has Been Rasing Prices
Moving customers to a $5 deal away from a $4 deal fits Wendy’s goals when it comes to pricing.
CFO GP Plosch talked about these efforts during the chain’s fourth-quarter earnings call.
“So on the systems side in Quarter 4, the system price is slightly below food-away-from-home inflation. The company priced about 6% in the fourth quarter, and that was about in line with the food-away-from-home inflation we saw in the fourth quarter.
“If we step back on company on the year in 2021, we priced slightly below food-away-from-home inflation in 2021,” he said.
That’s a lot of corporate talk, but Plosch made it clear the company has raised prices and intends to keep doing so.
“So we’ve preserved our pricing power, and we definitely expect to price north of 5% in 2022. We’re going to watch value and value perception.
“You know about 30%, 35% of our consumers are making less than $45,000 a year. So we need to make sure that we are striking the right balance and maintaining value perception,” he added.
That does not mean Wendy’s won’t be offering more deals in the coming year. They just might look more like the $5 Biggie Bag.
“Mix and mix management was clearly a nice tailwind for us in 2021. We are managing that. We are innovating behind Made to Crave. We are marketing in that area relatively strongly,” he said.
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