Wendy's Surge Pricing: New Normal or Trend?

Wendy's to test "dynamic pricing" model where burger prices fluctuate throughout the day based on demand, sparking debate among consumers.

Wendy's, the second-largest fast food joint in the U.S., recently announced plans to introduce "dynamic pricing," where the cost of items will fluctuate throughout the day based on demand. This means that the price of your burger might soon depend on when you're hungry.

During an earnings call on Feb. 15th, Wendy's CEO Kirk Tanner revealed that the chain will be testing out this new pricing model, along with AI-enabled menu changes and suggestive selling. The change is expected to roll out in 2025 and is part of a $20 million investment in new digital menu boards.

While Wendy's did not provide further details about the program, experts believe that other major brands may follow suit. Professor John Zhang from the University of Pennsylvania predicts that dynamic pricing will become the new normal in the industry.

This isn't the first time a major food and beverage corporation has experimented with dynamic pricing. McDonald's has tried it in certain locations, and Coca Cola is testing dynamic pricing vending machines in Japan.

While some customers may be unhappy with this new pricing strategy, dynamic pricing is already common in various industries, such as airlines and e-commerce. It allows businesses to adjust prices based on demand and stock levels, ultimately benefiting both businesses and consumers.

However, the fast food industry, known for its speed and affordability, may face resistance from customers who want to eat when they want without worrying about price fluctuations. Despite this, dynamic pricing can help businesses manage traffic throughout the day, leading to better service for customers and more manageable conditions for workers.

In conclusion, dynamic pricing in the fast food industry is a significant shift that may change the way we think about the cost of our favorite meals. As this trend continues to grow, it's important for businesses to consider the impact on customer satisfaction and loyalty.