Wendy’s/Arby’s Creates E&S Sourcing Co-op

Wendy’s/Arby’s Group has created an independent purchasing cooperative for its fast-food chains to source foodservice equipment, smallwares and other products and services not covered by its existing co-ops.

The Strategic Sourcing Group Co-op LLC will leverage the purchasing power of the company’s 10,000 units. SSG was put together by Wendy’s/Arby’s Group and the existing co-ops for Wendy’s, Quality Supply Chain Co-op, and Arby’s, ARCOP Inc. The two existing co-ops arrange for perishable and certain disposable items.

The company has its eye on purchasing efficiencies for its dual brands, as well as reducing general and administrative expenses. The focus of the new co-op is on securing competitive contracts for equipment, kitchen smallwares, furnishings, menu boards and signs, as well as energy and restaurant-level contract services. SSG will evaluate items or shared suppliers that are not proprietary to either brand. Wendy’s/Arby’s will fund approximately $5 million of start-up expenses, and will transfer strategic sourcing employees to the co-op.

SSG will have a nine-member board co-chaired by Wendy’s franchisee Don Haynes and Arby’s franchisee Tom Browne. Les Karel, v.p. strategic sourcing for Wendy’s/Arby’s Group, will become president of SSG and lead its day-to-day activities.