Dive Brief:
- Wendy’s $15 million investment in its mobile app and loyalty program is paying off, President and CEO Kirk Tanner said during a Q1 2024 earnings call last week. The restaurant chain put an emphasis on digital experiences as a way to drive sales.
- The number of monthly active users on Wendy’s app grew 40% from Q4 2023 to 6 million, according to Tanner. Total loyalty program membership reached more than 40 million in Q1.
- Wendy’s app helps the restaurant chain offer better personalization. “We see it as a really positive tool to create this loyalty, and engagement allows us to understand our customer better,” Tanner said.
Dive Insight:
Wendy’s mobile app efforts accompany in-store investments aimed at speeding up orders as the company looks to bolster customer loyalty despite declining traffic across the fast food industry.
“There's one thing I know for certain,” Tanner said during the call. “The experience we deliver to our customers is the most impactful driver of our business.”
Wendy’s is emphasizing speed of service, testing generative AI-powered drive-thrus that have reduced order times by as much as 22 seconds. The pilot program, which is now available to franchisees, has also led to improved order accuracy.
McDonald’s is likewise emphasizing speed and personalization. The company uses customer data to power personalized recommendations on its app, and has its crews prepare mobile orders before a customer arrives to ensure fast service.
