Wendy’s, the popular fast-food chain, has clarified that it will not be implementing surge pricing for its menu items. The company’s CEO, Kirk Tanner, initially mentioned the possibility of dynamic pricing during an earnings call, which led to widespread reports and backlash. However, Wendy’s later clarified that its dynamic pricing strategy would not raise prices but instead offer discounts to customers.
Dynamic pricing, also known as surge pricing, is a model where prices fluctuate based on demand. This pricing strategy is commonly seen in ride-sharing services like Uber and Lyft. Many people expected Wendy’s menu items to vary in price during peak hours and slow periods of the day.
The discussion of the new pricing model came as part of Wendy’s $20 million investment to install digital menu boards at all its US restaurants by 2025. The company also plans to invest an additional $10 million over the next two years to upgrade its digital menu boards worldwide. The implementation of digital menu boards will allow stores to change featured items more easily and offer discounts to customers.
After the CEO’s comments sparked concerns about potential price increases, Wendy’s received backlash on social media. People took to platforms like Twitter to complain and share memes about the possibility of higher prices. However, Wendy’s spokesperson, Heidi Schauer, sent an update stating that the company would not implement surge pricing, which refers to raising prices when demand is highest.
Wendy’s released a statement on its website reiterating that the digital menu boards would provide discounts and value offers to customers, particularly during slower times of the day. The company emphasized that any new features would solely benefit the customer. Therefore, customers may find discounts available when visiting less crowded Wendy’s locations.
This move by Wendy’s is part of its broader efforts to become more tech-savvy. The company plans to invest $15 million this year to improve its mobile app and loyalty program. Wendy’s aims to reach $2 billion in global digital sales by 2024, a year earlier than initially planned. Additionally, the company plans to expand its AI-enabled drive-thru, which was launched in June. By 2025, Wendy’s intends to implement AI menu changes and suggestive selling based on factors like weather.
In conclusion, Wendy’s has clarified that it will not be implementing surge pricing for its menu items. Instead, the company’s dynamic pricing strategy will focus on offering discounts to customers. This move is part of Wendy’s larger plan to embrace technology and enhance the customer experience through digital menu boards, improved mobile apps, and AI-enabled drive-thrus.