I use to work at Wendy’s and she’s telling the truth. Years ago, when they had a taco bar, they used hot water to revive the cheese sauce, refried beans, and the taco meet, up to several hours after it was put out.
Adding water to refresh the beans and cheese is true at sports concessions. If you’ve had nachos that are too spicy, it’s because they added more jalapeno juice. If the nachos are too watery then they added too much water. The nacho cheese gets browner as the day progesses.