The next time you order a Baconator at Wendy’s, it could be pricier than you remembered. That’s because Wendy’s recently announced it will test out dynamic pricing, where prices will fluctuate throughout the day based on demand.
“Beginning as early as 2024, we will begin testing more enhanced features like dynamic pricing and daypart offerings, along with AI-enabled menu changes and suggestive selling,” Wendy’s CEO Kirk Tanner explained during a conference call, according to Nation’s Restaurants News.
Tanner added that the company plans to introduce and invest $20 million into digital menu boards to improve order accuracy and will grow sales with upselling and merchandising. Surge pricing is rapidly becoming the new norm, with the pricing method slowly making its way into restaurants and other establishments.
What Is Surge Pricing?
Surge pricing is the practice of charging more for a product or service when there’s an increase in demand. If you’ve ever tried to book an Uber during rush hour only to notice that your regular ride is more expensive, it’s due to surge pricing. Uber famously uses dynamic pricing and regularly raises their prices in cases of high demand, weather, rush hour, and special events.
Despite receiving backlash from customers about having to deal with unexpected cost increases, the popular app continues to stick with its pricing methods.
Wendy’s Clarifies the Meaning Behind Their Initial Statement
While most people and media outlets took Kirk Tanner’s statements to mean prices will increase with demand, a spokesperson for Wendy’s released a statement to clarify. According to Today, in an email to NBC News, a Wendy’s spokesperson clarified that the company doesn’t plan on implementing surge pricing or raising prices during times of high demand.
Instead, Wendy’s intends to use their new digital menu boards to change the featured items displayed throughout the day and offer more discounts. The company insists it wants its newest features to benefit customers. As prices soar, only time will tell how companies like fast-food chains and restaurants will manage their price tags.
