The company tried to raise and lower prices throughout the day depending on demand, leading to a backlash.
U.S. fast-food chain Wendy's is considering testing the price of menu items to vary throughout the day depending on demand, a strategy already well-established among ride-hailing companies and ticket sellers.
Wendy's CEO Kirk Tanner said on a conference call this month that the Dublin, Ohio-based burger chain will begin testing dynamic pricing, also known as surge pricing, as early as next year. .
“As early as 2025, we plan to begin testing enhanced features such as AI-powered menu changes and suggested sales, as well as dynamic pricing and time slots,” he said. .
“As we continue to demonstrate the benefits of this technology in the restaurants we operate, we should see increased franchisee interest in digital menu boards, further driving sales and profit growth across the system.”
Wendy's plans to invest approximately $20 million to implement digital menu boards in all of its U.S. restaurants by the end of 2025. The company also plans to invest approximately $10 million over the next two years to support the enhancement of its global digital menu.
Tanner, a longtime PepsiCo executive, became Wendy's CEO this month. He succeeded Todd Penegor, who had served as Wendy's president and CEO since 2016.
Last year, Penegor announced a reorganization aimed at speeding up decision-making and increasing investment in new restaurant development, particularly overseas. The chain and its franchisees operate approximately 7,000 restaurants worldwide.
Wendy's stock fell slightly in Tuesday morning trading, a move that spurred a backlash from a front-page story in the New York Post that called the company “inflation's next frontier.”
On social media website X (formerly known as Twitter), many users focused on Wendy's, with some saying they would never eat the burger chain again.
“Surge pricing works for Uber because it's pretty much the only option. Not you. Rest assured, I won't go back to your restaurant…if this is what you do moving forward.” if there is.” one user said.
“Goodbye, Wendy's.” another person said. “Predatory pricing is not an option for commodity fast food.”
