Burger chain Wendy’s looking to test surge pricing at restaurants as early as next year

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Burger chain Wendy's looking to test surge pricing at restaurants as early as next year

Wendy’s CEO Kirk Tanner said that the it will start testing dynamic pricing, also known as surge pricing, as early as next year.

apnews.com

Burger chain Wendy’s looking to test surge pricing at restaurants as early as next year​

FILE - The Wendy’s sign is seen at a restaurant, Jan. 23, 2023, in Pittsburgh. Wendy’s is looking to test having the prices of its menu items fluctuate throughout the day based on demand, implementing a strategy that has already taken hold with ride-sharing companies and ticket sellers. (AP Photo/Gene J. Puskar, File)

BY MICHELLE CHAPMAN

Updated 11:06 AM EST, February 27, 2024


Wendy’s is looking to test having the prices of its menu items fluctuate throughout the day based on demand, implementing a strategy that has already taken hold with ride-sharing companies and ticket sellers.

During a conference call earlier this month, Wendy’s CEO Kirk Tanner said that the Dublin, Ohio-based burger chain will start testing dynamic pricing, also known as surge pricing, as early as next year.

“Beginning as early as 2025, we will begin testing more enhanced features like dynamic pricing and daypart offerings, along with AI-enabled menu changes and suggestive selling,” he said. “As we continue to show the benefit of this technology in our company-operated restaurants, franchisee interest in digital menu boards should increase, further supporting sales and profit growth across the system.”

Wendy’s Co. plans to invest about $20 million to launch digital menu boards at all of its U.S. company-run restaurants by the end of 2025. It also plans to invest approximately $10 million over the next two years to support digital menu enhancements globally.

Tanner, a longtime PepsiCo executive, became Wendy’s CEO earlier this month. He succeeded Todd Penegor, who had served as Wendy’s president and CEO since 2016.

Last year, Penegor announced a restructuring intended to speed decision-making and invest more in new restaurant development, particularly overseas. The chain and its franchisees operate about 7,000 restaurants worldwide.

Shares of Wendy’s fell slightly in Tuesday morning trading.

 

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[Nabs]

I get lowering prices when things are slow, but raising them feels like it'll just backfire. Imagine walking in and seeing a massive line, then looking and finding they're charging Five Guys prices.

 

[Remote]

Is Wendy's going to pay employees a higher wage during peak hours to coincide with their peak pricing?

No, huh...

Fu ck off Wendy's.

 

[jj23]

I get lowering prices when things are slow, but raising them feels like it'll just backfire. Imagine walking in and seeing a massive line, then looking and finding they're charging Five Guys prices.

Greed never thinks things through.

 

[DrexlersFade]

fukk that we really need to stat pushing back on this shyt. I don't understand how people allow this shyt no wonder nothing changes.

Don't support them they'll have no choice but to bring the price down simple economics.

 

[ORDER_66]

just dont shop at wendy's... fukk em...

 

[bnew]

the "let's see what the market can bear" ethos is slowly boiling society.

 

[B86]

Is Wendy's going to pay employees a higher wage during peak hours to coincide with their peak pricing?

No, huh...

Fu ck off Wendy's.

Give it a few more years…there will be one human employee, max, working in the fast food places so salary won’t matter much. The article is telling you about the AI advancement road track but people still don’t understand how fast this shyt is compounding.

 

[Remote]

Give it a few more years…there will be one human employee, max, working in the fast food places so salary won’t matter much. The article is telling you about the AI advancement road track but people still don’t understand how fast this shyt is compounding.

What is going to happen if artificial intelligence puts millions of people out of work and there is no new industry to employ them?

Because if there won't be universal basic income, how does this path not lead to inevitable rioting and political instability?

 

[ReturnOfJudah]

Gotta fight back and put these greedy b*stards out of business

 

[B86]

What is going to happen if artificial intelligence puts millions of people out of work and there is no new industry to employ them?

Because if there won't be universal basic income, how does this path not lead to inevitable rioting and political instability?

I’m not sure that the government cares. Even right now with people being employed, most aren’t making enough money and are slowly losing everything so I see no light at the end of the tunnel either way, at this point.

 

[Wild self]

What is going to happen if artificial intelligence puts millions of people out of work and there is no new industry to employ them?

Because if there won't be universal basic income, how does this path not lead to inevitable rioting and political instability?

Cannibalism

 

[ryderldb]

This is dumb. Wendys ain't good enough to be doing this shyt. There's way too many other options that aren't doing this bullshyt.

 

[MegaTronBomb!]

If they were smart, they'd offer a lower cost late night menu...or a "happy hour" instead of this shyt.

People would be much more inclined to make a trip to Wendys they'd normally not make, cause of prices being "worth it"