Fast food giant Wendy’s is purportedly planning to initiate an Uber-style surge-pricing model for its menu depending on fluctuating demand.
The plan, which will likely see a customer’s burger cost more during peak lunch and dinner hours, will be tested next year in a rollout, according to a report.
“Guess people better change their lunch hours from [2 p.m.] to [4 p.m.],” Ted Jenkin of oXYGen Financial, a wealth management firm, said.
“With all of the concern of rising prices, the last thing you want to have to consider is how much will it cost you for a burger and fries depending on the time of day,” Jenkin continued. “It will prey on the fact that people can’t remember what the price was yesterday or the week before. It isn’t a Taylor Swift concert, it’s a burger, fries, and a Frosty.”
Kirk Tanner, Wendy’s CEO, announced the change in policy during a call with investors and noted that Wendy’s is set to invest upwards of $20 million on menu boards that will update prices before customers in real time.
“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,” Tanner said.
Exactly how much a meal price could spike through a dynamic pricing approach has not been confirmed, the report noted.
“Dynamic pricing can allow Wendy’s to be competitive and flexible with pricing, motivate customers to visit and provide them with the food they love at a great value,” a company spokesperson said.
“We will test a number of features that we think will provide an enhanced customer and crew experience.”
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Some current menu items, including the Dave’s Single, have varying prices at different locations, according to the report.
Wendy’s currently sits as the most expensive fast food chain following its 35% rise in menu cost, which was a result of inflation between 2022 and 2023, PriceListo data reported.