How Wendy's Global CMO Carl Loredo Mastered Brand Innovation with Taylor Swift

Wendy's in March promoted Carl Loredo to the role of global CMO, following his successful four-year tenure as the U.S. chief marketer and more than seven years with the QSR burger chain. During his time as U.S. CMO, Loredo played a crucial role in helping Wendy's navigate the challenges of the pandemic and surpassing Burger King to become the country's second-largest burger chain.

During an Advertising Week New York session on Monday, when asked about his biggest inspiration, Loredo surprised the audience by mentioning Taylor Swift instead of a prominent figure from the advertising or business world. In a conversation with Brooke DiPalma, a reporter from Yahoo! Finance, Loredo highlighted how Wendy's aims to emulate Swift's ability to connect with her fans and turn them into enthusiastic brand supporters.

Loredo explained that Taylor Swift's dedication to her craft, evident in her three-hour shows regardless of weather conditions, is what garners her fandom. According to Loredo, Swift exemplifies understanding the consumer and creating art that caters to their needs. Similarly, Wendy's is utilizing their understanding of consumer needs during a challenging period characterized by inflation, COVID-related challenges, and high interest rates.

"There is no denying that there is a challenge, but for the right brands that engage with consumers and provide the best possible experiences, we are still seeing people show up," he stated. "At Wendy's, we consider ourselves fortunate as we measure our success based on factors such as our advertising, the food we offer, and the overall experience customers have when they visit us. Ultimately, we assess our performance based on whether we are attracting more people this year compared to the previous year. We are confident about our position with regards to customer traffic."

However, it is crucial to acknowledge the impact of inflation and consumer choices, especially when food prices are soaring. Loredo acknowledged that the competition between Wendy's and other QSR burger chains, though unspecified, has always been challenging.

The QSR industry often discusses the value and premium consumers, who each exhibit different behavior depending on the situation, according to Loredo. These consumers typically visit QSRs while on the go and have discretionary income. Loredo emphasized the need to assist consumers during challenging times. To exemplify this, he mentioned how the 4 for $4 value menu was introduced, gaining popularity to the extent that some people even got tattoos to commemorate the deal. Creating personal connections through cultural references has long been a priority for brands, especially in the QSR sector, as demonstrated by Wendy's embrace of everything from "Rick and Morty" to the metaverse.

This year, the chain collaborated with rapper-singer T-Pain to recreate his 2007 hit "Buy U a Drank" as "Buy U a Frosty," capitalizing on the public's nostalgic tendencies. This initiative transformed organic influencer interest into a comprehensive digital campaign. However, despite the success of rival McDonald's in leveraging nostalgia for profit through memories of birthday parties, Loredo remains cautious about using nostalgia solely for the sake of nostalgia in marketing. He believes that some brands resort to nostalgia because they haven't figured out how to modernize their approach. The key is finding a balance and avoiding reliance on outdated platforms.

Loredo sees striking the right balance of nostalgia as a crucial marketing strategy. He views Wendy's as a tenacious and competitive brand that must outsmart its competitors due to having a smaller budget. Despite maintaining its position as the second largest burger chain, Loredo believes it is important for Wendy's to maintain the mindset of a challenger brand in an increasingly competitive market.

According to Loredo, a major challenge within the quick-service restaurant (QSR) industry is misattribution. Since all QSRs sell hamburgers, there are many competing two-for-five offers. Moreover, there is a prominent yellow competitor that advertises more extensively than Wendy's, potentially diverting customers away from Wendy's. Loredo acknowledges that while he enjoys creating great work, the ultimate goal is to drive sales.