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Dave's Hot 'N Juicy: Wendy's unveils its new burger

Dave's Hot 'N Juicy, the new hamburger from Wendy's, is available today. But will the Dave's Hot 'N Juicy boost the restaurant's lagging sales figures?

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Many suggestions sounded good but didn't pan out. They tried green-leaf lettuce, but people preferred keeping iceberg because of its crunchiness. They thought about making the tomato slices thicker but didn't want to ask franchisees to buy new slicing equipment. They even tested a round burger, a trial that was practically anathema to a company that's made its name on square burgers. (While Wendy's did not go with the round shape, it changed the patty to a "natural square" with wavy edges because tasters said the straight edges looked processed.)

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Among the proposed changes were some golden nuggets. Tasters said they wanted a thicker burger, so Wendy's started packing the meat more loosely, trained cooks to press down on the patties two times instead of eight and printed "Handle Like Eggs" on the boxes that the patties were shipped in so they wouldn't get smashed. And Wendy's researchers knew that customers wanted warmer and crunchier buns, so they decided that buttering them and then toasting them was the way to go.

In the end, Wendy's changed everything but the ketchup. It switched to whole-fat mayonnaise, nixed the mustard, and cut down on the pickles and onions — all to emphasize the flavor of the beef. The chain also started storing the cheese at higher temperatures so it would melt better, a change that required federal approval.

"It's not about getting real exotic," said Lori Estrada, Wendy's senior vice president of menu innovation and packaging. "It's about making everything work."

Change is good — but hard

Wendy's acknowledges that remaking a burger that's been around for more than four decades isn't easy.

The company in July sued a group of franchisees who refused to install the toasters needed to make the buns for the new burger. Each restaurant was asked to install two toasters, at a cost of $5,000 to $6,000 per restaurant. Locations with older grills had to replace those too, at a cost of about $15,000.

But the franchisees, who own or have stakes in more than 300 of the 5,200 franchise locations, say that Wendy's hasn't addressed their concerns about the safety of the toasters. The suit's two lead franchisees, whose pictures hang on a "Hall of Fame" in the headquarters' front lobby, say that employees could burn or cut themselves while using the toasters. The suit is still pending.

Wendy's also says that it knows some customers may not like the new burger — or its price. At a time when Americans are cutting back, Wendy's says prices for the burgers will likely increase because of the higher-quality ingredients, maybe by 10 or 20 cents. Franchisees set their own prices, though. A Wendy's near the Dublin headquarters, which was selling the new burgers last week, charges $3.49 for the quarter-pound, $4.69 for the half-pound, and $5.79 for the three-quarters pound.

Wendy's officials say complaints are inevitable. After all, the chain was flooded with complaints for three or four weeks last year when it made changes to its fries, including flavoring them with sea salt. But Lynch said fry sales "exceeded expectations," although he declined to give figures. He also said the new burger "speaks for itself."

Analysts have mixed views on whether the burger will be a recipe for success. Bob Goldin, an executive vice president at Technomic, said the move comes late as Wendy's has so much catching up to do with competitors. "It probably would have been a bigger deal if it had happened a lot sooner," he said.

Jeff Davis, at research firm Sandelman & Associates, is more optimistic, saying Wendy's still has a reputation for quality and credibility. "If they can hit those buttons, it's going to work for them," he said.

Wendy's is hoping the burger will be one of many successful changes. The chain, which got a new CEO last week, wants to expand overseas and on the West Coast, relaunch a breakfast line that's easier for on-the-go eating, and sell more high-margin snacks and beverages.

And early next year, it will introduce new chicken sandwiches.

The project is code-named Project Gold Chicken.