Wendy’s/Arby’s Group Inc. has created an independent purchasing cooperative to handle supply-chain purchases for both Wendy’s and Arby’s.
The cooperative, Strategic Sourcing Group Co-op LLC, or SSG, will focus on securing competitive contracts on indirect supplies including equipment, kitchen smallwares, furnishings, menu boards and signs, as well as energy and restaurant-level contract services, Wendy’s/Arby’s said.
Each of the Wendy’s and Arby’s quick-service chains already have separate purchasing co-ops for brand specific food items, and those groups, the Wendy’s Quality Supply Chain Co-op and ARCOP, Arby’s purchasing arm, will continue to make those purchases.
“The creation of a third independent purchasing cooperative is an example of our aggressive efforts to generate cost savings for our systems,” Roland Smith, president and chief executive of Wendy’s/Arby’s Group, said in a statement. “This action will also increase transparency and give our franchisees greater control over the supply-chain process in the United States and Canada.”
Wendy’s/Arby’s said SSG will utilize the buying leverage of a nearly 10,000-unit system. The company also noted that it will provide $5 million to fund the startup of the new cooperative.
The co-op will be co chaired by Wendy’s franchisee Don Haynes and Arby’s franchisee Tom Browne, and governed by a nine-member board of directors. Les Karel, formerly the vice president of strategic sourcing for Wendy’s/Arby’s, has been named president of SSG.
Contact Elissa Elan at [email protected].