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Wendy’s Tests New Fries as QSRs Pursue ‘Differentiated Value’

[Update: Wendy's rolled out the Natural Cut Fries across the U.S. on 11/10. Details here.]

Seeking to build the appeal of its sides as well as entrees, Wendy’s is testing Natural-Cut Fries in selected markets. Sprinkled with sea salt, the thick, skin-on potato strips are served with ketchup in either a mini-tub for dipping or traditional squeeze pack.

The natural-cuts are priced the same as regular fries-from 99 cents to $1.89-and operators contacted in test markets say the product has been enthusiastically received.

wendys_deluxevalueIn the last quarter, Wendy’s has added the Bacon Deluxe cheeseburger and Spicy Chicken Nuggets and is readying the Fresh Wraps line of chicken wraps. What makes new french fries worth testing is their potential value in combo meals. So-called “bundled meals,” such as its Deluxe Value Meals, are going to be crucial components of all quick-service brands’ marketing programs this year because sides and beverages are profitable enough to counterbalance discounts on burgers and other entrees.

As operators learned in 2009, combos sell best when they contain can’t-get-elsewhere products and aren’t just discounted. The term Jack in the Box Chairman-CEO Linda Lang coined during a November analyst call was “differentiated value,” and it’s as good as any to describe 2010 menu marketing philosophy.jumbodeal

“It’s really hard to differentiate yourself with a $1 cheeseburger against what is out there in the marketplace, so what has worked well for us in the past and what we have planned in 2010 is more of the bundled meal,” Lang told analysts. “That’s a very compelling value; a higher price point obviously but still compelling price point for a meal that includes some products that are unique to Jack in the Box. So it’s differentiated value but still a very compelling price point. 

Lang also noted a “continued falloff in sales of side items and carbonated beverages” during the fourth quarter, a trends others—especially CKE Restaurants CEO Andrew Puzder—pointed to throughout 2009 as a reason for depressed same-store sales. “We’re seeing customers order a $6 Thickburger and a glass of water,” Puzder lamented last July.

Carl’s Jr. and Hardee’s both adopted natural-cut fries in 2008 so Wendy’s product isn’t unique, but the fries would be new enough to the menu to lure the curious and anchor combo meals.

 Jack in the Box currently offers its $3.49 Jumbo Deal, why CKE introduced its low-price Big Carl burger and quickly followed it up with a Big Carl Combo offer and why Wendy’s ended last year with $2.99 Deluxe Value Meal combos. Krystal has its multi-side $5 combo (see commercial at left); Steak ‘n Shake now offers a $2.89 Snack Pack combo; Sonic’s recent limited-time combo was the Brown Bag Special with two burgers, two tots and two drinks for $7.99. Checkers’ new “More for Less Menu” lets customers choose combo elements, including drinks and sides.

Beverages are important to ‘differentiated value,’ too, which is why most QSRs are looking for ways to stock almost as many beverage choices as convenience stores. At its Whopper Bar, Burger King is testing a “BK ‘N GO” cabinet with flavored waters, energy drinks and more. Carl’s Jr. in August added Monster Energy drinks and Krystal added its own branded energy drink, Blitz, in efforts to keep customers from leaving with just a sandwich a glass of water.

In keeping with its determination to avoid me-too products, Jack in the Box has said it will introduce a new core-product platform within the next few weeks. It could be the Quesadilla Grillers it tested last year or something totally different. But the odds are that it will be introduced with a combo-meal element.

53 comments to Wendy’s Tests New Fries as QSRs Pursue ‘Differentiated Value’

  • Don Pedro Gilbert

    Yes, avoiding fast food in general is the BEST way to go. But if someone goes their whole life and never at least TRIES some fast food… then honestly they’re not someone I want to be taking cooking advice from, healthy or not, yummy is yummy. Food as just fuel is a very boring way to go through life.

    That being said, the new fries are a travesty. I don’t think there’s any way to water that down… they just suck. The old fries were crisp, with a soft potato-ey inside. The new fries waver from over salted to flavorless, they’re limp, unappealing… and a major downer considering Wendy’s has the best burgers of any fast food place I’ve been to. I don’t think health food nuts are going to be breaking down the door for the new “natural fries”,considering they’re even worse for you, so I wouldn’t be surprised to see things switch back within a year or two. You’re fast food, embrace the unhealthiness… give healthy alternatives but don’t just changes things and make them suck and act like they’re healthier.

  • lisa

    I hate the new fries and absolutely loved the old ones. I don’t want to step on any toes of the people who like the new fries, but there seems to be no happy middle with these fries. Either people really like them or they really hate them. My idea? Why can’t they have both? Let us choose what ones we want!

  • Karelyn Wilson

    The new sea salt fries are okay. I do like the skins which make them different but still think Mc Donalds has the best in the nation. Wendy’s is a good 2nd place!

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