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This article is about the multinational hamburger chain taken from Wikipedia, the free encyclopaedia
Wimpy is a fast-food chain originally founded in the United States. It found its success internationally, mainly in the United Kingdom and South Africa. It has changed between being a table-service establishment and counter-service establishment throughout its history
Background
The chain was founded in Bloomington, Indiana by Edward Gold in 1934 as Wimpy Grills, with the chain in the United States hitting its peak with 26 locations in 1947. In 1954, Gold signed a license with J. Lyons and Co. for them to operate Wimpy Bar across the United Kingdom, with further international agreements a few years later through its subsidiary company, Wimpy International. By 1977, there were only seven Wimpy locations in the United States, which all folded following Gold’s passing in that year. Despite the brand’s demise domestically, the chain would peak at 1,500 international locations the following year.[2]
The company was sold to United Biscuits in 1977, and then to Grand Metropolitan in 1989. Grand Metropolitan would begin to phase out the Wimpy Bar in the United Kingdom, rebranding many of them as Burger King (which it also owned) due to Burger King having the greater brand recognition amongst consumers, to aid market competition against McDonald’s.[3] Following various buyouts, Wimpy was sold to Famous Brands in 2007. Famous Brands had operated the South African Wimpy franchise for several years, and the acquisition made it the parent company.
As of October 2021, the company remains headquartered in Johannesburg, South Africa where it has 459 outlets,[4] this is followed by the United Kingdom with 71 outlets.[5] In 2017 and 2020, the company announced plans for nationwide expansion in the United Kingdom.[6][7]
History
Origins in the United States
The Wimpy brand was established in 1934 by Edward Gold, when he opened his first location in Bloomington, Indiana under the name Wimpy Grills.[8][9] The name was inspired by the character of J. Wellington Wimpy from the Popeye cartoons created by E. C. Segar. Gold did not open his first Chicago area location until two years later in 1936, after opening units in five other Midwestern cities.[10] By 1947, the Chicago Tribune reported that the chain had 26 units, and expected to sell eight million hamburgers annually in the Chicago area.[11]
According to a 1978 Chicago Tribune article, Gold’s company Wimpy Grills Inc. of Chicago, had 25 locations in the United States at its peak, but only seven locations remained at the time of his death in 1977.[2] The chain vanished within the United States after Gold’s death because no one had purchased the rights and trademark to the Wimpy name from Gold’s estate.[2]
Wimpy’s International
In 1954, Gold sold a licence to J. Lyons and Co. to use the Wimpy name in the United Kingdom.[12][13] Wimpy Grills Inc. of Chicago later formed a joint company with Lyons called Wimpy’s International Inc. in 1957. Wimpy’s International was based in Chicago and allowed the brand to operate Wimpy Grills in the rest of the world.[14]
The joint company eventually grew to 1,500 locations, with Gold later selling his share to Lyons prior to his death.[2] After obtaining full control of the international licensing outside of the United States, Lyons and its successors handled global franchising through their United Kingdom-based subsidiary Wimpy International Ltd. This arrangement ceased when Wimpy UK became a subsidiary of the South Africa-based Famous Brands in 2007. The South African company started to handle worldwide franchising duties directly from Johannesburg.
United Kingdom
Lyons obtained a licence to use the Wimpy brand in the United Kingdom from Edward Gold’s Chicago based Wimpy Grills Inc.[12][13] and, in 1954, the first “Wimpy Bar” was established at the Lyons Corner House in Coventry Street, London.[15][16] The bar began as a special fast food section within traditional Corner House restaurants, but the success soon led to the establishment of separate Wimpy restaurants serving only hamburger-based meals.
In a 1955 newspaper column, Art Buchwald, syndicated writer for the Washington Post, wrote about the recent opening of a “Wimpy’s Hamburger Parlour” on Coventry Street and about the influence of American culture on the British.[16]
Buchwald wrote, “Food served at the table within ten minutes of ordering and with atomic age efficiency. No cutlery needed or given. Drinks served in a bottle with a straw. Condiments in pre-packaged single serving packets.” In addition to familiar Wimpy burgers and milkshakes, the British franchise had served ham or sardine rolls called torpedoes and a cold frankfurter with pickled cucumber sandwiches called ‘Freddies’.[16]
During the 1970s Wimpy refused entry to women on their own after midnight. This may be because of an assumption they might be prostitutes.[17][18]
By 1970, the business had expanded to over 1,000 restaurants in 23 countries.[15]
In July 1977, the business was acquired by United Biscuits.[19] By the end of the 1980s, Wimpy was beginning to lose ground to McDonald’s, which had opened its first restaurant in the country in 1974, and so the new management of Wimpy began to streamline the business, by converting some of the traditional table service restaurants to counter service. When United Biscuits decided to divest its restaurant division in 1989, it sold the business to Grand Metropolitan (now Diageo). At the time of the sale, there were 381 locations in the United Kingdom. Grand Metropolitan had acquired Burger King the previous year, and it began to convert the counter service restaurants to Burger King since it had a greater global brand recognition.[20]
In February 1990, the remaining 216 table service restaurants were purchased by a management buyout, backed by 3i.[21] These were locations that were considered less desirable by Grand Metropolitan. At the time of the buyout, there were also 140 franchised locations outside of the United Kingdom. In October 1999, Wimpy rolled out a chain of restaurants known as Dr. Beaks, to take on brands such as KFC.[22]
A second management buyout occurred in May 2002, backed by the Bank of Scotland.[23] At the time of the sale in 2002, there were approximately 300 locations in the United Kingdom and Ireland.
Although Wimpy outlets have decreased in numbers in the United Kingdom, they are still found in many towns and cities, including Huddersfield, and at seafront/seasonal locations, such as Felixstowe, Clacton-on-Sea, Clarence Pier in Southsea, Porthcawl and Brean Leisure Park in Somerset.[24] By the beginning of the 21st century, most Wimpey’s were found in less desirable low-rent locations that primarily cater to pensioners and others on a fixed income, rather than the high street locations of former times.[25] Another big change from earlier times was that most locations were now franchises and not company-owned operations.
On 27 February 2007, Famous Brands, which owns the Wimpy franchise in South Africa, announced that it had acquired Wimpy UK.[26][27] Having acquired the brand, Famous Brands has rebranded Wimpy in the United Kingdom, to bring it in line with Wimpy South Africa. The “new” logo is the one that had been used by Wimpy UK from the 1960s until the 1980s. In November 2009, Famous Brands began to upgrade its 170 locations in the United Kingdom to resemble United States-style diners.[28] As of October 2021, 67 restaurants remain in the United Kingdom.[29]
Wimpy has long been perceived as the chain with the “healthiest” offerings among the hamburger chains, but over the past 18 months, both McDonald’s and Burger King have introduced upgraded products and salads. Another possible factor affecting Wimpy overall performance is price discounting. Wimpy has avoided discounting, preferring instead to push its value menu and various meal combinations.
Wimpy has always differentiated its brand based on quality. Ever since Fred Bloggs started the company in 1969 its hamburgers have been made with the freshest ingredients and served the way the customers want them. To Fred, quality was so important he made the phrase “Quality is our recipe” part of the logo.
The replacement campaign that features “combo choices” is more tactical than strategic. It focuses on the here and now but does little to build the brand’s image and distinguish it from competitors. It is also very easy for Burger King and Harvey’s to duplicate.
Some industry observers claim Wimpy current advertising problems stem from the curse of Fred Bloggs. When Fred was the central spokesperson in ad campaigns Wimpy was “on a roll”. The public liked his warm smile and folksy, down-home image. Since Fred’s passing in 2005 Wimpy hasn’t had much of an image. Due to product advances by competitors, Wimpy is now in a position where its quality differentiation is no longer meaningful, and its advertising is ineffective. An overhaul of the Wimpy marketing strategy is needed since the problem seems to go beyond advertising.
Wimpy must identify a direction that will reposition the brand in the longer term. Executive vice-president Don Calhoun believes that any new advertising campaign should more prominently position Wimpy food and its “quality” heritage. In past advertising campaigns the essence of Wimpy positioning strategy was expressed by the slogan “It’s better here.” While that slogan does represent the Wimpy of the past, Calhoun must consider how rapidly the marketplace is changing. Since competitors have caught up in terms of product choice and quality, Wimpy now needs a new strategy that will have greater impact on consumers.
In order to maintain Wimpy position in this competitive market, it is important for Wimpy senior management to ensure that its customers – the managers and decision makers, are satisfied with their ‘offerings’ /products. Therefore, Wimpy marketing department has conducted a survey-based study on its customers. It will provide data on how Wimpy, and its competitors are perceived by customers. The survey questions follow, and the data file is stored on Blackboard site for Business Analytics 7FNCE040W, as ‘Wimpy Data. Sav ’. Wimpy management team can use the results of the survey and its analysis to make strategic decisions to improve the company’s standing in the eyes of its customers.
Adapted from A Case Study on Wimpy Inc. and from Malhotra, N.K (2009), Marketing Research: An Applied Orientation: Global Edition, 6th Edition, Pearson Higher Education
The Task
Write a memo/report, of NO more than 3000 words limit, to Wimpy management team addressing the following issues:
• Describe the respondents of the questionnaire. Consider the demographic and psychographic profile of Wimpy customers. Does it differ from the profile of people who frequently buy as customers of competitors restaurants?
• Develop a model to predict customers’ consumption of burgers based on their attitudes to nutrition and/or fat or any other independent factor you feel may affect their consumption of fast foods.
• Make a recommendation regarding what Wimpy should do next, including where to focus more attention in order to remain as a major player in the fast food quick-serve hamburger market.
