How The Wendy 's Company Ensures Total Quality And Compliance

Denny’s provides franchisees the chance to manage a traditional restaurant with its complete system for creating and managing Denny’s restaurants which comprise of trademarks, equipment, building designs as well as design. Thus, it can be argued that Denny’s was maintained and is still being operated through

Senior leadership must determine and direct the level of quality that is acceptable within the organization. Leadership should prioritize areas of quality and use data based on benchmarks from other facilities. (Dlugacz, 2006). In addition the author states there are some important areas that must be monitored for quality. Compliance must be followed by leaders and all

When restaurants not do franchise they maintain uniformity in service and quality which can be monitored and evaluated by Corporate using the same standards. The rigidity will ensure consistency for the chain. There are some monitoring costs that emerge when a company decides to franchise its operations. These monitoring costs are costs involved with making sure that employees at the franchisee work hard and follow the rules. This requires hiring supervisors who will monitor the employees, but somebody needs to monitor the supervisors and so forth.

And franchisors, by design, exert indirect control over their franchisees and franchisee’s employees by way of licensing out the operation of their brand. In traditional franchise agreements, the franchisee is an independent business owner with a license to use the franchisor’s trademarks and other intellectual property as part of a royalty or fee arrangement. The ruling, which states that “setting productivity standards” is a form of indirect control, understandably has franchisors and franchise attorneys seeking shelter.

Kroger competes with its rivals by having good product quality, product variety, and customer services. Kroger insisted that product quality is crucial in building consumer loyalty and brand image. Great companies do not just get new customers, they want customers come back for more. Customer loyalty brings long-term sales, and Kroger did a very good job on this. Kroger’s outstanding private brand products had earned the market share. “Consumer research, the finest ingredients, and our rigorous testing produce the quality behind our corporate brand” (Kroger, 2015). Kroger is able to monitor the production and distributions of their products; it has developed one of the strictest inspection and specification systems in this grocery market. According the research, the quality of beef is checked by some tests such as USAD Choice, Certified |Angus USAD Choice, and Natural Beef Select. Kroger also promised that their pork is 100% natural and poultry products are grown organically and locally. Seafood, vegetables, and fruits are guaranteed to be fresh. All products in Kroger are held to the same high standards. Because of its time efficient systems and distribution systems, Kroger can stock new and fresh products every

In fast-food corporate America In-N-Out Burger has always remained family-owned. It had no stockholders to respond to and was able to invest in maintaining high standards of quality. Unlike its competitors the chain, with 258 stores presently, is able to retain its constant growth in sales, even in times of recession.

Due to running our own manufacturing plant we are able to implement more strict quality standards. One of every ten products will be thoroughly inspected and one in every 1,000 will be real life tested to ensure that each batch comes out with equally great quality. Western Kicks upper management will also have annual meetings with suppliers to discuss quality expectations. Those meetings can happen more often if necessary and all supplies will be inspected before being used for a batch. If more than 1 in every 50 of an item have to be discarded or returned due to quality problems, a meeting must be held with the supplier as soon as business allows.

Wendy's revenues were derived from the sales made from company-owned restaurants, from royalties paid to the company by owners of franchised restaurants, from fees paid by the owners of franchised restaurants for technical assistance and from interest earned on investments. By 1978, Wendy's operated 1,407of restaurants. Of this number, 1,119 stores were owned by franchisees. Franchised stores were built to a uniformed specification and were not located within the same market areas as company-owned stores. Most restaurants were located in urban or densely populated suburban areas; a large volume of customers was a primary factor for Wendy's success. Each franchisee paid a $15,000 fee for technical assistance prior to the opening of a restaurant for services such as site selection, construction plans, initial training for owners and staff members, advertising materials, national purchasing agreements and operations manuals. For 1978, company-owned stores generated 84.13% of revenue, royalties generated 12.65% of revenue, technical

According to recent surveys, the American people want quality fast food ("Report: Americans Want Better Quality Food”). The better the quality of food, the more customers a restaurant will get and Wendy’s is stepping up to the plate. From crisp salads to juicy burgers, Wendy’s is fulfilling this demand. In addition, the Los Lunas location is doing an excellent job in producing high quality food; the baked potatoes are large and tender, the frosty’s are uniform in their texture, and the burgers are rich with flavor. To further support this claim, here is a review from Trip Advisor,” This is fast food - no doubt about that, but it is not as greasy as McDonald's and the food is much fresher. Their hamburgers look and taste like hamburgers should -- not like greasy little patties that have been sitting under a heat lamp. Wendy's is great because it offers things on its menu that other fast food places don't -- like chili and baked potatoes…If you have to go the route of fast food, this chain is one of the better ones and the variety will please everyone in your family” (CleverCat). Overall, Wendy’s is measuring up the desire for high quality food at the fast-food

To date all restaurants are company-owned and not franchised. Restaurants cover forty-three states in the U.S., Canada, England, and France. The only variation to the original model has been an increased environmental awareness and a “Test Restaurant” in Washington D.C. that serves Asian-Style fast casual food.

The restaurant commits itself to franchisees and stakeholders in helping to achieve superior financial results and sustainable performance and development opportunities. Thus, the corporate mission and its core values are instrumental to the company’s success.

Yasin and Alavi (1999) conducted a quantitative study to determine if Total Quality Management (TQM) can produce quality improvement

“In July 2013, the Company announced a system optimization initiative, as part of its brand transformation, which includes a plan to sell approximately 425 company-owned restaurants to franchisees by the end of the first quarter of 2014” (Wendy's 2013 Annual Report, 2014, p.13). All businesses restructure its operations from time to time, and Wendy’s is no different. As a result, the reduction in the amount of company owned restaurants will expose the intellectual capital to more people, which can also begin to hurt the assets that drive revenue for the company. In addition, the less control over the individuals that work in these restaurants can affect the image of the brand, if the intellectual capital is not handled correctly. However, the affect intellectual capital has on the balance sheet of the company will ultimately be the judge of the success of the company’s intellectual

Inputs: Roy Rogers controls carefully who can become a franchisee, and the case provides details of the financial and managerial qualifications that are necessary to be accepted as a franchisee. Roy Rogers also controls tightly the design and construction criteria for new restaurants.

The company checks on all stores every four-six months to ensure all quality standards. Each of the stores has a copy of the required qualifications that have to be prepared for these tests.