Wendy’s war: Aussie milk bar takes on US burger chain amid expansion plan to open hundreds of stores

The Wendy’s war has begun, pitting a plucky little Australian chain with 120 outlets against an American giant with over 7,000 stores worldwide.

They both sell fast food and both are called Wendy’s, but one is Australian and specializes in ice cream and the other is American and famous for its square burgers.

“There can’t be two Wendy’s,” said Dean Tully, owner of the Aussie Wendy’s store in Whyalla, South Australia.

Based on the economics, the burger joint could be considered the potential favorite to win the junk food war with the American chain pocketing $3.1 billion in 2022 turnover while its Australian rival’s revenue was $94.7 million.

Australian milk bar Wendy’s, which started in South Australia in 1979, is also 10 years younger than American Wendy’s, which started operations in 1969 in Columbus, Ohio.

It’s coming, though, with its development director Abigail Pringle holding online meetings with potential franchise investors, amid plans to open hundreds of stores.

“They can come to Australia and strut around by all means, but I wouldn’t want it to be under the Wendy’s banner,” Tully told Guardian Australia.

‘We don’t have two Hungry Jack’s. We don’t have two McDonald’s. We are Wendy’s.

Ms Pringle said Wendy’s believes “Australia is a lucrative market for long-term growth.”

“We think the Australian market could be hundreds of restaurants,” he added.

Ms Pringle has been with Wendy’s for 21 years and said the chain could offer incentives such as joint ventures to attract Australian franchisees.

“We are putting money on our balance sheet, we are finding the land, we are designing, building and handing over the keys,” he said. The Australian Financial Review.

“We haven’t said yet that we’re going to do that in Australia, but all I want to share with you is that we’re actively doing that in the US and in Canada.”

Wendy’s, the US version, (pictured) is best known for its square burgers, fries and ‘Frosty’ dessert

There is no set opening date or location for the first restaurant, but the Australian fast food market is expected to expand by 32% to $8.7bn over the next five years, according to Euromonitor data, Wendy’s is eager to get things going.

Ms Pringle said that Wendy’s was looking for a parent franchise model in Australia, meaning a partner company that would handle most of the Australian business.

“We have to be careful with what exactly that timeline is because we want to pick the right partner. And that takes a little bit of time,’ he said.

Established examples include Collins Foods, which operates KFC and Taco Bell, and Restaurant Brands, which runs Pizza Hut and Carl’s Jr.

Supatreats, based in the Sydney suburb of Parramatta, is the main franchisee for Wendy’s Milk Bar.

The US version of Wendy’s, the third largest burger chain after McDonald’s and Burger King (known as Hungry Jack’s in Australia), is best known for its square burgers, fries and ‘Frosty’ frozen dairy desserts.

It differs from McDonald’s and Hungry Jack’s in having a strictly made to order policy and does not use heat lamps to keep food warm.

Professor Michael Handler, a UNSW trademark law expert, said the two Wendy’s would likely reach an agreement to coexist peacefully in Australia.

Development director Abigail Pringle (pictured) said Australia is a lucrative market and the company could offer incentives such as joint ventures to get the ball rolling.

They already do it in New Zealand, where the Australian chain operates as Wendy’s Supa Sundaes.

Professor Handler said that since one store focuses on ice cream and the other on burgers, there won’t be much confusion.

“I imagine Australian consumers won’t be too confused and will be able to tell the long-standing ice cream business apart from the big international burger chain, so it’s plausible that the two can co-exist,” he said.

Daily Mail Australia contacted Supatreats for this story, but the owner declined to comment.