Wendy’s Co-Ops Reevaluate Their Local Shop Service

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.
Copyright Adweek L.P. (1993)