Similar to how ride shares will do surge-pricing on certain days and times, Wendy’s plans on adopting their own model for their menu.
Wendy’s CEO and president made the announcement during a call with investors on February 15th.
Beginning as early as 2025, we will begin testing more enhanced features like dynamic pricing and day-part offerings, as well as AI-enabled menu changes and suggested selling.
The company plans on spending around $20 million to make the menu boards across all their restaurants digital that way they can change prices on the fly. The roll-out will be done by the end of 2025.
Just like you see with Uber and Lyft, the cost of food items could go up depending on the time, location, weather and demand. So if you want to stop at Wendy’s for a burger during your lunch break it might cost significantly more than what you would typically pay. It’s unknown if prices will go below the already set prices or stay the same.
According to data from PriceListo, Wendy’s is already the most expensive fast-food restaurant in the U.S. The cost of their menu items rose 35% from 2022 to 2023 (via New York Post).
Wendy’s decision to implement surge-pricing menus is a bold move that could potentially revolutionize the fast-food industry. By adjusting prices based on demand and popularity, Wendy’s can capitalize on peak hours and maximize profits during busy times.
However, there are potential drawbacks to this surge-pricing model. Customers may feel frustrated or taken advantage of if they are charged higher prices during peak hours, leading to a negative perception of the brand. Additionally, there is a risk of alienating loyal customers who may be put off by fluctuating prices. It will be crucial for Wendy’s to carefully monitor and adjust their surge-pricing strategy to ensure that it strikes the right balance between profitability and customer satisfaction. Overall, this innovative approach has the potential to reshape the fast-food industry and set a new standard for pricing strategies in the future.
