When you think of dynamic pricing or surge pricing, you probably don’t associate it with fast food. But that might change soon, as one of the largest fast food chains in the United States is planning to test out this controversial practice starting next year.
Wendy’s, known for its delicious burgers and frosty treats, is expected to introduce an “Uber-style” surge-pricing model in 2025. Dynamic pricing means that the cost of a product can fluctuate based on demand. This approach is already common in industries like ticket sales and ride-sharing.
According to a spokesperson for Wendy’s, they will be testing a variety of enhanced features on digital menu boards, including dynamic pricing, different offerings throughout the day, AI-enabled menu changes, and suggestive selling based on factors like weather.
The announcement was made during a recent earnings call, where Wendy’s expressed its intention to be competitive and flexible with pricing. By implementing dynamic pricing, they hope to motivate customers to visit and provide them with their favorite food at a great value.
It’s worth noting that Wendy’s already sells menu items at different prices depending on the location. For example, a Dave’s Single burger costs $5.99 in Newark, NJ, but $8.19 in Times Square. This practice is not new, but introducing surge pricing would be a significant change for the fast food industry.
This news comes at a time when McDonald’s faced backlash for increasing prices on its Big Mac combo. In response to public outcry, McDonald’s promised to prioritize affordability.
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