On Feb. 15, Wendy’s president and CEO, Kirk Tanner, mentioned “dynamic pricing” during an internal earnings call that went public.
Many news outlets ran with the story, telling their readers that what Tanner meant was “surge pricing,” or adjusting prices upward based on demand. It’s common in industries like hospitality and ride-sharing.
Despite not being what Tanner was referring to, it did create quite a stir among Wendy’s customers.
Wendy’s Clarifies What Dynamic Pricing Means
In the infamous internal call, Tanner referred to dynamic pricing, which means fluctuating prices that can go up and down.
On Feb. 27, Wendy’s posted a clarification of what its chief executive was saying in the call. “We have no plans to do [surge pricing] and would not raise prices when our customers are visiting us most,” the statement says.
However, the announcement didn’t stop reputation-damaging rumors from spreading.
To Combat Negative Publicity, Wendy’s Offers $1 Burgers
To dig itself out of the hole, Wendy’s offered free Cinnabon Pull-Aparts, the chain’s “spin on a classic cinnamon roll,” on Leap Day during breakfast hours.
Then, it came up with an even better deal for March Madness. If you install the Wendy’s app, you can score a $1 Dave’s Single or a $2 Dave’s Double throughout the month and into April. The offer ends on April 10.
A Dave’s Single is a quarter-pound of beef with American cheese, tomato, lettuce, pickles, and onions. As the name suggests, the Double has two patties.
If you’re a Wendy’s rewards member, you can only use the deal one time each without any additional purchase. Wendy’s will offer additional discounts during the college basketball tournament.
Wendy’s Plans To Use Digital Menu Boards
Wendy’s statement about its pricing also included a reference to digital menu boards, which will be used in the chain’s U.S. restaurants for promotions and offers.
“Digital menu boards could allow us to change the menu offerings at different times of day and offer discounts and value offers to our customers more easily, particularly in the slower times of day,” Wendy’s statement reads.
Other fast food chains have used digital menu boards, so they do not indicate that Wendy’s is planning anything nefarious. McDonald’s introduced menu boards in some locations in 2015.
The Chain Is Putting AI on the Menu
Wendy’s also plans to use AI to suggest changes on the digital menu boards it will implement next year.
The company hasn’t explained exactly how it will use AI, except to effect “menu changes and suggestive selling based on factors such as weather.”
AI will consider factors like outside temperature and inclement weather to suggest menu items like Wendy’s famous chili.
Burger King Took a Swing at Wendy’s Dynamic Pricing Announcement
After Wendy’s dynamic pricing announcement was misconstrued in the media as “surge pricing,” Burger King threw shade at Wendy’s by giving out free Whoppers with a $3 purchase or more between Feb. 28 and March 2.
“We don’t believe in charging guests more when they’re hungry,” Burger King said, clearly referencing Wendy’s. “Good thing the only thing surging at BK is our flame!” the chain added.
We’ll have to wait and see if the $1 burger can make Wendy’s fans forget the fake surge pricing debacle this March.
