US burger chain Wendy’s plans to test ‘surge pricing’ next year
Al Jazeera
Company to try raising and lowering prices throughout the day based on demand, prompting backlash.
Wendy’s, a United States fast food chain, is looking to test having the prices of its menu items fluctuate throughout the day based on demand, a strategy that has already taken hold with ride-sharing companies and ticket sellers.
During a conference call this month, Wendy’s CEO Kirk Tanner said the Dublin, Ohio-based burger chain will start testing dynamic pricing, also known as surge pricing, as early as next year.
“Beginning as early as 2025, we will begin testing more enhanced features like dynamic pricing and daypart offerings along with AI-enabled menu changes and suggestive selling,” he said.
“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.”
Wendy’s plans to invest about $20m to launch digital menu boards at all of its US company-run restaurants by the end of 2025. It also plans to invest about $10m over the next two years to support digital menu enhancements globally.
