Watertown, the largest city within a 100-mile radius, has become the newest home to a Wendy’s restaurant. The fast-food chain opened its doors on August 10 at 937 5th St. S.E., marking a significant addition to the city’s growing business landscape.
What made Watertown an attractive destination for Wendy’s, a brand that remains relatively rare in South Dakota?
According to business development experts, the city’s strategic location and accessibility played crucial roles.
“The marketplace in this area is robust, which makes it an ideal spot for franchises in the food industry,” said Chris Clifton, Executive Director of the Watertown Development Company. “Access is everything in development, and Watertown offers great access.”
Founded in 1969, Wendy’s has seen consistent growth over the years. With the new store in Watertown, the company continues its expansion, which saw a 2% growth in the second quarter of 2024. Wendy’s, valued at $3.51 billion, now operates over 7,100 locations worldwide.
“Watertown is a hub of commerce, attracting businesses that recognize the value we offer, from medical services to recreational spots like Lake Kampeska,” Clifton added. “This new Wendy’s is a testament to the ongoing growth in our city, which benefits all sectors.”
Clifton also noted that manufacturing in Watertown has experienced growth rates of over 30%, a trend that further supports local economic development.
Wendy’s brings with it some of its well-loved classics, including the Frosty, Wendy’s Chili, never-frozen burgers like the Baconator, and baked potatoes.
Economic Development in Watertown
The addition of Wendy’s is just one part of Watertown’s broader economic expansion. Tim Sheehan, President and CEO of the Watertown Area Chamber of Commerce, highlighted the recent development of the Prairie Lakes Ice Arena, Prairie Lakes Wellness Center, and the Premier Softball Complex as key drivers of local business.
“These facilities keep our hotels and casual restaurants busy,” Sheehan said. “New attractions like Wendy’s offer residents and visitors something new to try, and the value of their combo meals, especially at the $5 price point, makes them competitive in the market.”
Sheehan also predicted that the city would see more hotel developments near the new ice arena complex as developers continue discussions to bring in additional big-name retailers.
The Anza Soccer Complex is another significant draw for the community, attracting visitors who contribute to the local economy.
Clifton emphasized that the manufacturing sector’s growth is likely to boost smaller businesses as well. “As manufacturing expands, we’ll see more small shops opening, driven by young entrepreneurs seizing new opportunities,” he said. “Families in town for events or appointments will appreciate having another national dining option, even in a smaller city like Watertown.”
Nationally, only about 12% of new franchises open in communities with populations between 10,000 and 50,000.
Watertown’s ability to secure the state’s 10th Wendy’s location is a notable achievement.
“We’re always excited to welcome new businesses to Watertown,” Sheehan added. “It’s great to see Wendy’s choose our city for its latest South Dakota location.”