Feature
Scheming
How international burger chain Wendy’s
pointed a finger at fraud by cracking a
macabre scam that could have run into
double ‘digit’ damages
RAUDSTERS are becoming Chris’s own words below and now
F
more brazen in their serves as a salutary lesson to
attempts to fleece retailers around the world about
international retailers. how to be forever vigilant and how
However, few could have staying cool in a crisis saved the day
imaged the lengths that one and the brand integrity and future
woman and her accomplice went to earnings.
in an attempt to defraud one of the Below is British-born Manning’s
US’s biggest restaurant chains. chronological account of the
If it had succeeded, this macabre incident and the company’s action
fraud would have not only left steps as well as key lessons that will
Wendy’s several million dollars out be of interest to loss prevention
of pocket courtesy of an ambitious managers and crisis management
extortion scam, but it would have professionals who may face this
also overnight completely destroyed kind of scam in the future. Chris also
the brand’s equity with an American recently outlined the case study to a
public that visits the restaurant in British audience at the Retail Fraud
their millions every year. Show at the Novotel, Hammersmith
In March 2005 the company and on May 1.
the nation held its breath as the
claim that a human finger had been Day 1 – The ‘incident’ occurs at
discovered in a 99 cents tub of chilli 7.20 pm on March 22 2005. The
sauce became part of San Jose store immediately stops selling
folklore as well as national and chilli sauce. They save the
international news, a water cooler offending finger and discard the
conversation stopper and ghoulish remaining chilli. The local police
fodder for late night comedians. are called by the restaurant, but
But for the company and its they regard the incident as a
franchisees, this was no laughing health rather than a police issue.
matter as the snowball of the story Friends of the claimant are seen
gathered momentum. taking photographs outside the
Wendy’s director of loss restaurant and by 10 pm the issue
prevention Chris Manning has hit the local news as an
meticulously chronicled how he and ‘unconfirmed’ story. At the same
his team unpicked this complex and time the franchise team
cowardly con and brought the managing the San Jose restaurant Left:
perpetrators to book while at the contact Wendy’ corporate UK-born
same time averted a major crisis of communications team which Chris
confidence for this iconic household immediately starts drafting media Manning
name. statements in anticipation of a outside one
He kept a diary of what potential national media story. of Wendy’s
happened which is detailed in restaurants
ISSUE 2 SEPTEMBER 2008 • 29
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