Wendy's/Arby's Group forms independent purchasing group to get good deals

Atlanta-based Wendy's/Arby's Group is forming a new independent purchasing cooperative to secure a range of goods and services for both Wendy’s and Arby’s restaurants. The company said the new entity, called the "Strategic Sourcing Group Co-op," will use the combined purchasing power of nearly 10,000 Wendy’s and Arby’s restaurants in North America, and will focus on getting good contracts for supplies such as kitchen smallwares, furnishings, menuboards and signs, as well as energy. Wendy's/Arby's, the third-biggest fast food company in the U.S., will fund approximately $5 million of start-up expense for the cooperative. The creation of the independent purchasing cooperative "is an example of our aggressive efforts to generate cost savings for our systems," said Roland Smith, CEO 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."