News broke on Tuesday that burger chain Wendy’s had plans to start an experiment with raising and lowering food prices during peak times.
The details were described as a customer in line waiting to order a $5 hamburger, but when the time comes to place the order at the drive thru, kiosk or cashier the price on the menu changes to $6. Wendy’s alluded to plans to adjust prices for their products or services based on the demand and time.
“Beginning as early as 2025, we will begin testing more enhanced features like dynamic pricing and day-part offerings along with ai-enabled menu changes and suggestive selling,” said Kirk Tanner, Wendy’s CEO.
Customers began calling the chain out saying the surge pricing, in an economy that is already seeing increasing, overpriced food costs a bait-and-switch.
During mid-February, Kirk Tanner, the recently appointed CEO and president of Wendy’s, informed analysts about the company’s upcoming strategies to enhance profits. These plans include the implementation of digital menu boards that would allow for easier price adjustments of items. Additionally, they will be experimenting with dynamic pricing and daypart offers, as reported by Nation’s Restaurant News.
According to Tanner, their intended investment of $20 million will go towards implementing digital menu boards in all company-operated restaurants across the United States by the end of 2025. An additional $10 million will also be allocated over the next two years to improve digital menu boards for the entire system worldwide.
The main purpose of utilizing digital boards is to enhance the precision of orders and boost sales through the promotion of specific menu items.
According to a statement from a Wendy’s spokesperson, the company has no intention of implementing surge pricing.. The spokesperson also emphasized that the company did not use the term and has no plans to raise prices during periods of high demand.
According to a statement released on Feb. 26, our (digital) menu boards were intended to provide us with increased flexibility in showcasing featured items. However, several media reports have incorrectly interpreted this as an indication of our intention to raise prices during peak hours at our restaurants. We want to clarify that we have no such plans and would never increase prices during our busiest times when our customers are most likely to visit us. Any future features we may experiment with will be specifically designed to benefit both our customers and restaurant staff. By utilizing digital menu boards, we can easily modify the menu offerings at different times of the day and offer discounts and value deals, especially during slower periods.
The implementation of digital menus will aid in accurately displaying the changing prices during the day. According to Tanner, the introduction of these menus will have a significant impact on our restaurant team as it will allow them to concentrate on important tasks such as preparing our delicious and top-notch Wendy’s favorites, as well as fostering customer connections to encourage repeat business.
In addition, the CEO announced to analysts that the company plans to increase its advertising budget for the newly launched breakfast menu options. As part of their breakfast expansion, they have partnered with Cinnabon and introduced two new items: English muffin sandwiches and a breakfast burrito.
As reported by Nation’s Restaurant News, the company is currently experimenting with “saucy nuggets” in select Ohio locations, featuring flavors such as honey-barbecue, Buffalo, garlic-Parmesan, and ghost pepper.
