ATLANTA, Apr 20, 2010 (BUSINESS WIRE) --Wendy's/Arby's Group, Inc. (NYSE: WEN), today announced the formation of
a new independent purchasing cooperative, Strategic Sourcing Group
Co-op, LLC, responsible for securing a range of goods and services for
both Wendy's(R) and Arby's(R) restaurants.
Formation of the Strategic Sourcing Group cooperative (SSG) is the
result of an initiative by Wendy's/Arby's Group, Quality Supply Chain
Co-op (QSCC), which is Wendy's purchasing cooperative, and ARCOP Inc.
(ARCOP), which is Arby's purchasing cooperative.
SSG will utilize the combined purchasing power of nearly 10,000 Wendy's
and Arby's restaurants in North America for goods and services that are
not within the purview of either QSCC or ARCOP, both of which arrange
for the purchase of perishable (food) and certain disposable items for
their respective brands. SSG will focus on securing competitive
contracts for indirect supplies, such as equipment, kitchen smallwares,
furnishings, menuboards and signs, as well as energy and
restaurant-level contract services. This includes evaluating items or
shared suppliers that are not proprietary to either brand. The company
has committed to fund approximately $5 million of start-up expense for
the SSG cooperative, which is being recorded as a charge in the first
quarter of 2010 and will be paid over a 24-month period. Wendy's/Arby's
Group will benefit from lower G&A expenses by the transfer of strategic
sourcing employees to the co-op and from the purchasing efficiencies
realized by company-owned restaurants. These savings and efficiencies
will be incremental to the three-year margin improvement and G&A savings
target of $160 million established at the time of the merger.
"The creation of a third independent purchasing cooperative is an
example of our aggressive efforts to generate cost savings for our
systems," said Roland Smith, President and Chief Executive Officer of
Wendy's/Arby's Group. "This action will also increase transparency and
give our franchisees greater control over the supply chain process in
the United States and Canada."
SSG is co-chaired by franchisees Don Haynes from Wendy's and Tom Browne
from Arby's, and is governed by a nine-member board of directors
representing franchisees and Wendy's/Arby's Group. Benefits of the new
cooperative will automatically extend to all franchisees serviced by
either QSCC or ARCOP.
Separately, Haynes and Browne announced that Les Karel, Vice President,
Strategic Sourcing, Wendy's/Arby's Group, will move to a new role as
President of SSG and lead the day-to-day activities of the cooperative.
Prior to his most recent position at Wendy's/Arby's Group, Karel served
as Vice President of Capital Equipment Purchasing for Arby's Restaurant
Group (2006-2008) and held similar leadership roles at Darden
Restaurants (1999-2006). His extensive business development, purchasing
and supply chain experience also includes positions with Edward Don &
Company, Boston Market and General Mills Restaurants.
About Wendy's/Arby's Group, Inc.
Wendy's/Arby's Group, Inc. is the third largest quick-service restaurant
company in the United States and includes Wendy's International, Inc.,
the franchisor of the Wendy's restaurant system, and Arby's Restaurant
Group, Inc., the franchisor of the Arby's restaurant system. The
combined restaurant systems include more than 10,000 restaurants in the
U.S. and 24 countries and territories worldwide. To learn more about
Wendy's/Arby's Group, please visit the company's website at www.wendysarbys.com.
SOURCE: Wendy's/Arby's Group, Inc.
Wendy's/Arby's Group, Inc.
John Barker, 678-514-6900
john.barker@wendysarbys.com
Kay Sharpton, 678-514-5292
kay.sharpton@wendysarbys.com
