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After prosperous early development of the chain, sales dropped as the company clambered to achieve brand differentiation in the highly competitive fast-food market.

This situation would pick up in the mid-1980s. Starting on February 10, 1979, elderly actress Clara Peller was featured in the successful "Where's the Beef?" North American commercial campaign written by Cliff Freeman.

Her renowned line rapidly entered the American pop culture (it was even used by Walter Mondale in a debate with Gary Hart in the Democratic primary election) and served to promote Wendy's hamburgers. Peller, age 84, was cast from the campaign in 1985 because she performed in a commercial for Prego spaghetti sauce, saying she "finally found" the beef.