- In 2025, Wendy’s will begin using “dynamic pricing,” or surge pricing, which changes with demand
- The chain is investing in digital menu boards to allow for quick price changes
- A Wendy’s representative confirmed to PEOPLE that prices will vary based on factors such as weather
Wendy’s customers may face different prices depending on what time of day they go to the burger joint.
The fast-food outlet announced a plan to introduce “dynamic pricing” in 2025 during an earnings call in February.
Wendy’s new pricing model will be similar to how ride-sharing apps like Uber or Lyft raise their prices during times of increased demand. Customers could pay as much as $1 more for a Baconator during peak hours, such as the lunch rush, according to Good morning America part that was broadcast on Tuesday.
In an earnings call, Wendy’s CEO Kirk Tanner explained that the chain will spend $20 million to add digital menu boards to restaurants. Tanner also said it will spend $10 million over the next two years for digital menu board enhancements at international locations, per National Restaurant News.
These digitized menus, “AI-enabled menu changes and suggestive selling” will allow Wendy’s to quickly implement price changes during peak hours. A Wendy’s representative also confirmed to PEOPLE that customers may notice lower prices during slower parts of the day.
“Historically, companies set only one price that was constant over time. Pricing algorithms allow companies to change prices throughout the day or perhaps even within an hour,” said Zach Brown, an economics professor at the University of Michigan. Good morning America.
A representative for Wendy’s added to PEOPLE that the chain plans to test suggestive selling based on factors such as weather. They confirmed that Wendy’s is investing in technology that will increase menu flexibility.
Krispy Kreme is giving away a dozen glazed donuts for $2.29 on Leap Day
The fast food restaurant has some offers before the change in pricing model. Wendy’s is celebrating Leap Day on February 29 with a sweet breakfast.
Wendy’s new Cinnabon covers
The brand’s new Cinnabon Pull-Aparts will be free to customers at Wendy’s restaurants during breakfast hours. Simply order in person, online or via the app.
Earlier this month, Wendy’s announced that it’s upping its breakfast game by teaming up with Cinnabon for sweet morning treats. The new breakfast item is “Wendy’s spin on a classic cinnamon roll while still supporting the familiarity of the product,” according to a release at the time.
Categories: Trends
Source: HIS Education