Give Triarc (NYSE: TRY) CEO Roland Smith credit for forthrightness. Less than a month after the company announced it would acquire Wendy (NYSE: WEN)'s -- and well before the deal has even closed -- he wrote a letter to the company's employees saying in effect "Welcome to our conglomerate, you're fired!" to borrow a line from Isadore Barmash's book.
Well, not exactly. Triarc -- which is the parent company of Arby's -- isn't a conglomerate, and his letter had a bit more tact. He wrote: "There will be job cuts at Wendy's. I don't know how to put it any other way and say that I am acting with integrity. We will continue to be truthful with you about these as they come up."
It's a bold strategy. Given Wendy's struggles in recent years, he'll need all the help he can get in making this acquisition work, including strong employee morale. While immediate job cuts might help the bottom line, the impact on the company's remaining employees could make it far from a no-brainer.
Smith is betting that straight talk will pay off, but most employees would probably prefer job security. This letter may lead to a less than friendly welcome when Triarc takes control.
Last updated: February 10, 2010: 09:23 AM
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Reader Comments (Page 1 of 1)
5-13-2008 @ 5:09PM
Joe Smaha said...
I read Roland Smith's letter to Wendy's employees in it's entirety and I must say it was a forthright letter but one that will be welcomed by the Wendy's employees for the most part. The majority of the productive employees will certainly be asked to stay. Cutting a little fat will be health in the long run even though Wendy's current management has reduced overhead quite a bit in the last several years. Unfortunately, they cut too many of their seasoned experienced operations executives and brought in lower pay and promoted lower qualified personnel to replace them.
The two combined companies should be able to reduce food, paper, cleaning supplies, and marketing costs because of increased purchasing power. Their challenge is to reduce labor costs when minimum wages go up both this year and in 2009, not to mention that technology in preparing food has not been able to increase or even meet the quality of menu items currently served at Wendy's. Also, the Wendy's menu has always been a customer option or choice menu in ordering sandwiches made to order, but in the last several years, new menu items and new choices have been given to the customer that has slowed service times and increased mistakes in orders because of the "too many choices" given the customer. New management must find a way to reduce those choices by offering different named sandwiches which have set defined condiments which will reduce mistakes and speed up service times, especially at the Drive-in Window. I have been a Wendy's franchisee for 32 years and have successful endured all the changes, successes and failures of the Wendy's senior management teams over those years.
Good luck to Mr. Smith, he has my support.
5-14-2008 @ 11:29PM
KB said...
Hey employees/restaurants, its ALWAYS a bonus to get the customers ORDER RIGHT.
5-14-2008 @ 9:17PM
Urma Burnette said...
Wendy's used to be my favorite fast food eatery. However, in recent years, in my town, service and quality of food has suffered. It has been over a year since I have visited; it may be even longer before I visit again. I also prefer my food hot - not cold as is served here.
My son-in-law stopped by late one night and the surly person at the window told him he was sure that McDonald's was open. So, my son-in-law left and went to McDonald's.
5-14-2008 @ 9:37PM
shit from shinola said...
Wendy's has great food. I lost 12 lbs eating cheeseburger (meat only) side salad and chili..everyday at lunch.
5-14-2008 @ 10:17PM
JUNE said...
I LOVED WENDY;S USE TO EAT THERE ALL THE TIME, MY DAUGHTER WORKED THERE NOW THEY HAVE MOVED OR GONE COMPLETELY - AS I DONT SEE ANY AROUND ANY MORE, WERE A GREAT PLACE TO EAT , NOT ANY MORE THEY HAVE LEFT EXETER NH , IT SEAME;S MIISS IT MOST , SULLIE
5-15-2008 @ 8:59PM
earl said...
eating at wendys once was all i wanted. burger was half raw, and they would not replace it
5-20-2008 @ 6:06PM
BILL said...
THE NEW BEEF SANDWICH IS A RIP-OFF
AND A SHAME TO SERVE.
5-14-2008 @ 11:19PM
Jellyring said...
The past couple times that i've had Wendy's I noticed that there fries have become quite disgusting they have a really oily (like old oil) taste and they are never fresh. There fries USED to be really good :(