The latest pleasure that Wendy’s is adding to its breakfast menu comes from an unexpected source: another fast food company.
Other chains have already placed this kind of dangerous wager. Rival partnerships might increase revenue, but they can also enrage restaurant owners.
Starting on February 26, Wendy’s and Cinnabon will collaborate to introduce a new baked dish to the breakfast menu that resembles cinnamon rolls. This is a novel collaboration between two companies that frequently vie for the same budget-conscious clientele.
Fast food restaurants frequently collaborate with brands that they may not view as direct competitors. “This is a way to license the brand and get it reach well beyond its existing store base,”as stated by chief editor Jonathan Maze of the trade journal Restaurant Business.
She mentioned that Cinnabon frequently does that, having partnered with Subway last month to create a footlong cinnamon churro and selling its cinnamon rolls at Pizza Hut a few years ago.
“It’s more of a concern for franchisees because it can dilute the brand and perhaps give people less reason to go to an actual Cinnabon,” Maze stated to CNN. Additionally, the majority of Cinnabon outlets have not yet opened for the 10:30 am breakfast period that Wendy’s offers.
McDonald’s has also been experimenting with Krispy Kreme to sell their donuts at some restaurants in Indiana and Kentucky. Perhaps Wendy’s adding cinnamon pull-aparts would entice some disappointed consumers of McDonald’s, which last year dropped its McCafé bakery assortment that also included a cinnamon roll.
The “Cinnabon Pull-Apart” are baked with sugar, brown butter, and cinnamon after sweetened dough is dipped in a glaze. According to Wendy’s announcement on Wednesday, it is topped with Cinnabon’s famous cream cheese icing, which has a flavour profile similar to that of a cinnamon roll.
Wendy’s selected Cinnabon because it desired to collaborate with a comparable company that also“evolves around quality and delivering an experience that delights our customers,” said John Li, global vice president of Culinary Innovation, at a virtual press conference. “Cinnabon was the brand that had that overlap with the level of importance they put on quality.”
The birthday of breakfast
Wendy will be selling breakfast for the fourth time starting next month. With a $20 million investment, the business joined the fast food breakfast market in March 2020 to take on competitors like McDonald’s, which has long held the upper hand in the morning market.
Previous forecasts by the chain indicated that breakfast would account for 10% of sales; however, in 2021, sales for the morning menu reached 8.5%, and Wendy’s ceased to provide specific sales data.
Former CEO Todd Penegor stated during Wendy’s most recent earnings call that it was a “highly profitable daypart,”yet acknowledged that it’s still “tying to ingrain the breakfast daypart and the habit”with clients.
When Wendy’s first opened, it offered a standard menu with tonnes of egg sandwiches along with a few special additions like a Frosty-ccino drink and a “breakfast Baconator.”
The menu has changed over time. Wendy’s strategy to increase its morning business includes consistently adding new items to its menu. Two examples of these recent additions include a breakfast burrito that mimics a Taco Bell and an English muffin sandwich that looks like a McDonald’s McMuffin. French toast sticks and a Frosty cream cold brew iced coffee are new additions to the menu, taking a more Wendy-specific approach.
According to Wendy’s Li, their research indicated that customers were seeking “comfort and nostalgic experiences,” so they decided to add cinnamon pull-aparts since they are a “sweet and indulgent item that is perfect for bringing someone into that comfort zone.”
“All of us think ‘Cinnabon Pull-Apart’ will resonate and appeal to those younger audiences, along with our iced coffee and cold brew,” Li said. Surging sales of iced coffee are being driven by Gen-Z because they think those are more refreshing, better tasting and more of a treat compared to hot coffee.
Li stated. Gen-Z is driving the surge in sales of iced coffee because they believe it tastes better, is more refreshing, and is a treat than hot coffee.