CHICAGO - Wendy's Intl. is asking its local co-ops to reevaluate what services they need from their local agencies, which could result in some agency changes if co-ops wish.
Ron Cress, head of the Chicago-area local marketing for Wendy's said that the intent of the evaluation is not for the local co-ops to change agencies, but just to reconsider what exactly they need out of the local agency. 'Anytime you reevaluate I suppose it could lead to changes, but that's not the intent,' Cress said. 'The only thing that's happening is that the co-ops have been encouraged to reevaluate what they need in terms of service from agencies for their local areas.'
One Wendy's co-op source said mainline agency Backer Spielvogel Bates has been gaining more work on a local level especially in the area of media buying. This source said that the larger agency can often offer co-ops better deals on spot buying, making it more attractive to local dealers to use Backer. 'In some of the markets, Backer has come in with a media commission rate far better than the local guy can give,' the source said. 'It forces the co-op to re-think the relationship.'
Cress said Backer is offering to do local spot buying if co-ops desire, 'but that's the extent of what they want to do.'
A number of fast-food chains have been doing more local business with less agencies. Both McDonald's and Pizza Hut have been consolidating regions with some of the larger agencies in the network.
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