Wendy’s Planning Uber-Style ‘Surge Pricing’ Where Burger Prices Change Based On Demand

Wendy’s is gearing up to experiment with an “Uber-style” surge-pricing model, where the prices of menu items will fluctuate throughout the day based on demand. This move, set to be tested next year, has sparked concerns among consumers who may find themselves paying more for their favorite meals during peak hours.

According to a report, Wendy’s CEO Kirk Tanner revealed the upcoming dynamic pricing system during a call with investors. The fast-food chain plans to invest $20 million in advanced menu boards capable of updating prices in real-time, without incurring additional overhead costs.

Under this new model, prices could rise during breakfast, lunch, and dinner rushes, although specific details about the extent of these fluctuations remain undisclosed. A Wendy’s spokesperson emphasized that dynamic pricing aims to enhance competitiveness and customer experience, but refrained from revealing potential price ranges.

While industry experts acknowledge the potential benefits of dynamic pricing in terms of scheduling and operational efficiency, they warn of potential backlash from consumers. Some consumers may perceive fluctuating prices as a rip-off, akin to surge pricing in ride-sharing services like Uber.

Critics argue that surprising customers with varying prices could lead to dissatisfaction and frustration. Additionally, concerns have been raised about the impact of rising food prices due to inflation, with Wendy’s already being labeled as the most expensive fast-food chain in the US.

Despite these concerns, franchise owners suggest that consumers may become more accepting of dynamic pricing over time, particularly among younger generations. However, the ultimate success of this pricing strategy remains uncertain, as it navigates a delicate balance between maximizing profits and maintaining customer satisfaction.


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