What The Massive Wendy's Closure Says About America's Evolving Taste
Earlier this month, the beloved fast-food chain Wendy's announced its plan to close over 300 locations across the country. This comes one year after it shut down 140 restaurants.
Wendy's third-quarter report for 2025 showed a 4.7 percent loss of revenue generated by stores that have been open for over a year. It also showed a 2.6 percent decrease in sales worldwide.
"When we look at the system today, we have some restaurants that do not elevate the brand and are a drag from a franchisee's financial performance perspective," Wendy's CEO Ken Cook said in a quarterly earnings call. "The goal is to address and fix those restaurants."
It's not just Wendy's that's struggling; several fast-food restaurant chains are being forced to minimize their presence. Jack in the Box plans to shutter between 150 and 200 locations, Denny's is set to pull the plug on 150 of its restaurants, and Burger King already closed over 400 of its stores in 2023.
What's driving closures?
The US was once a country synonymous with fast food, burgers, and fries, but this is beginning to shift. Restaurants that used to be cheap and accessible are becoming unaffordable as companies jack up their prices to simply pay the bills. Nearly 80 percent of Americans now see fast food as a luxury, not the cheap and convenient option it once was, according to a survey, and Americans are consuming less fast food than they did a decade ago, according to a report by the National Center for Health Statistics.
The other piece of the puzzle has to do with evolving tastes. 54 percent of participants in a survey by the Pew Research Center said that people in the US are more aware of healthy eating habits than they were 20 years ago. Americans are also more concerned about obesity and other food-related health problems, and are more likely to pay attention to additives, portion size, sugar, and fat content, according to a study.
Soda and diet soda sales are at a 30-year low as Americans opt for zero-calorie flavored waters instead. Fast-food chains are performing poorly, but fast-casual restaurants with an emphasis on fresh, natural ingredients are booming. Additionally, buying organic and following Paleo or vegan diets is more or less mainstream in many parts of the country, particularly among younger generations.
Aside from health, younger generations have also developed a taste for bolder flavors. 78 percent of Gen Zs said they liked or loved spicy foods, according to a 2024 survey. An increasing number of Americans prefer Mexican or Asian dishes over pizza, pasta, or burgers. This means the classic fast-food options at chains like Wendy's just aren't doing it for them anymore.
Another dimension explaining the decline in fast food chains like Wendy's is that consumers care more than ever about sustainability, and they're smart enough to know that changing the color of your logo to green means nothing. Fast food, being a grab-and-go option, is inherently wasteful, with packaging that's bad for the environment. Unless brands make significant steps towards reducing their carbon footprint, their customer base will continue to dwindle.
KEEP ON READING
What's The Best Fast Food Joint According To Sales?
