Wendy’s to Open 1st Store in Australia This Week

The U.S. burger chain is the latest brand to try to capitalise on Australians’ increasing demand for healthier fast food options.

AUSTIN, TEXAS - JUNE 18: A Wendy's restaurant on June 18, 2024 in Austin, Texas. Many fast food restaurants are in the midst of a budget-meal war, offering promotions to lure customers back despite inflation and wage increases. Photo by Brandon Bell/Getty Images

From Jan. 15, Australians will have another major fast food brand on the menu.

American burger chain Wendy’s will open its first local store in almost 40 years on Cavill Avenue, the pedestrian mall at the centre of the Gold Coast’s Surfers Paradise shopping and entertainment district.

More are sure to follow, though the owner, Flynn Group, isn’t saying when or where yet.

But big plans are underway with the company’s website flagging a future 200 stores across the country by 2034.

The Flynn Group is the biggest franchise operator in the world after McDonald’s and Burger King.

It operates thousands of Wendy’s, Arby’s, Applebee’s, and Taco Bell stores in the United States, as well as Planet Fitness. It started operating in Australia two years ago when it acquired the rights to the Pizza Hut chain from private equity firm Allegro Funds, and has held the Wendy’s brand since 2023.

There are over 7,000 Wendy’s outlets around the world with the Flynn Group buying 190 of them in 2021 (up to 300 currently), including 21 in New Zealand.

It’s not the first foray for Wendy’s down under, after it closed its 11 stores in Australia in the 1980s.

Diving into the Competitive Aussie Fast Food Market

Fast food is a $25 billion market in Australia and burgers account for about 41 percent of the pie, according to research firm IBIS World.

Revenue has grown at around 1.3 percent a year over the past five years, and is expected to increase by around half that in 2024/25. Just over a fifth of Australians say they eat fast food at least once a week.

While Wendy’s will be remembered for its square beef patties, Flynn Group is opening the first store with a smaller menu than its competitors and a focus on chicken burgers.

It says it’s spent the past 15 months developing a reliable supply chain and testing the product for attributes like spiciness, crunch, and juiciness, according to the Australian Financial Review.

The result, according to a company spokesperson, is “a really distinct blend of heat and pepper.”

Moving from beef to chicken also matches changing consumer preferences, with a 2024 Open Table survey revealing 93 percent of Australians wanted to eat healthier options when it comes to takeaway, and nearly three-quarters of respondents (73 percent) telling a Food Standards Australia New Zealand study (pdf) that they put effort into maintaining a healthy diet.

It’s older Australians who eat the most takeaways, with Statista reporting that those aged between 40 and 49 years old spend an average of $44 per month, while those aged 18 to 39 years old spent just a dollar less.

Flynn Group’s planned entry into Australia goes against the tide for many fast food companies.

The largest operator of KFC stores in Australia, Collins Foods, reduced its dividend payout in December after posting a 52 percent fall in half-year profits, and Domino’s has announced it’s abandoning a long-term target to have more than 7,000 stores.

Both hold around a five percent share of a market, which is dominated by McDonald’s at 23 percent.

In August last year, Japanese chain MOS Burger pulled up stumps and announced it would exit the market, while U.S. brand Carl’s Jr has also had difficulty establishing a foothold.

However, in both cases, it is arguable that their company strategies contributed to their lack of success with both chains having little to no footprint in Sydney or Melbourne.

On the other hand, rival burger seller Hungry Jack’s claims its revenue grew by 10 to 15 percent in the 2024 financial year, so not all the large operators are declining, and Wendy’s may find she once again receives a warm welcome from hungry Australians.