Wendy's to roll out Uber-style surge-pricing, with menu prices fluctuating based on demand
A spokesperson from Wendy's told Fox News Digital how the fast food chain will experiment with new features such as dynamic pricing on a digital menu.
Wendy's is expected to roll out a dynamic pricing model similar to Uber's surge-pricing as soon as next year.
"Beginning as early as 2025, we will begin testing a variety of enhanced features on these digital menu boards like dynamic pricing, different offerings in certain parts of the day, AI-enabled menu changes and suggestive selling based on factors such as weather," a spokesperson confirmed to Fox News Digital after Wendy’s CEO Kirk Tanner announced it on an earnings call earlier this month.
The spokesperson said this pricing overhaul is part of a "number of features" that will be tested by the fast food giant.
"At Wendy’s, we’re focused on providing great tasting, fresh, high-quality food and doing it in a way that brings value to our customers. As we’ve previously shared, we are making a significant investment to accelerate our digital business. In addition to evolving our loyalty program, we are leveraging technology even more with the roll out of digital menu boards in some U.S. restaurants," the spokesperson said.
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Dynamic pricing, also known as surge pricing, is when the price of a product or service fluctuates according to demand or other factors, such as calling for an Uber ride during rush hour or bad weather.
The Wendy's spokesperson went on to tell Fox News Digital that dynamic pricing can "allow Wendy's to be competitive and flexible with pricing, motivate customers to visit and provide them with the food they love at a great value. We will test a number of features that we think will provide an enhanced customer and crew experience."
However, associate professor of economics at George Washington University Steven Suranovic told The Daily Mail, "They could shoot themselves in the foot by introducing something customers aren't ready for."
He went on to argue, "Dynamic pricing enables them to take that surplus away from consumers and put it into the firm's pocket. Ultimately, the biggest losers would be lunchtime customers. If people feel like they're getting gouged, they're not going to take kindly to this dynamic pricing strategy."
Wendy’s will reportedly spend $20 million to implement this along with digital menu boards that would reflect fluctuating prices in real time.
The New York Post reported, "Data from consumer transparency platform PriceListo has already determined that Wendy’s is the most expensive fast-food chain in the US after menu costs rose 35% due to inflation between 2022 and 2023."
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Meanwhile, rival fast food chain McDonald's has taken heavy criticism over its Big Mac combo, priced at nearly $18, among other menu hikes. Backlash caused the company to promise to focus on affordability.
The New York Post reported, "In particular, low income customers making less than $45,000 per year have largely stopped ordering from McDonald’s. Pummeled by inflation, they’re eating at home more frequently as grocery prices come down, [CEO Chris] Kempczinski admitted."
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Fox Business' Louis Casiano contributed to this report.