Wendy's has made a troubling announcement. Per The New York Post, "One of the largest Wendy's franchisees — Meritage Hospitality Group — is aiming to close down another round of restaurants after a year full of shutters and a Sept. 16 bankruptcy filing."
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Exactly what this concerning development portends for the popular restaurant chain is unclear at this time. Per the outlet, Meritage is looking to the court for its okay to close "to close at least 20 locations — but no more than 60." The list of which Wendy's sites are looking at closure is not yet set in stone.
Meritage Has Apparently Been Trimming Its Portfolio
This is not the first sign of problems for the Michigan-based franchisee. According to The New York Post, 33 eateries were dropped from its portfolio in September and October. "All told, Meritage...had closed about 60 underperforming stores before filing for bankruptcy in September." Therefore, with a total of 93 sites bowing out, that was a worrying sign of things to come.
The Franchisee Seems To Be Doing What It Can To Remain Afloat
Meritage, although facing some tough circumstances, is trying to remain stable. They shared with The New York Post that they aim "to keep as many restaurants open as possible. We will provide updates when there is meaningful new information to share rather than commenting on each procedural filing."
Wendy's Has Also Been Facing Stiff Economic and Industry Headwinds
The chain's outlook is seemingly rather subdued. Back in February, Wendy's said in a statement via The New York Post, "By closing consistently underperforming restaurants, we're enabling our franchisee partners to increase focus on locations with the greatest potential for profitable growth."
With the economy in flux and consumers checking out other casual-dining options, Wendy's has had to adjust accordingly. In fact, at the end of the summer, Wendy's was muscled out as America's number 2 choice for burgers by none other than Burger King. For a stint of six years, Wendy's had occupied that second slot right behind McDonald's, per the outlet.
Wendy's fans, matk your calendars for Friday, November 13. According to The New York Post, "...[T]he next wave of closures would likely take place over the following few Fridays through Nov. 13...."
