Fast-food chain Wendy's has announced that it will adopt an approach similar to Uber's surge pricing policy, which dynamically adjusts the prices of menu items at specific locations during periods of peak demand. The controversial strategy aims to leverage real-time data to adjust prices and demand, increase efficiency and potentially improve customer satisfaction. From the report: Wendy's CEO Kirk Tanner said on a conference call earlier this month that the fast-food chain plans to experiment with dynamic pricing next year. “We plan to start testing more enhanced features as early as 2025, such as dynamic pricing, time slots, and AI-powered menu changes and suggested sales,” he said. “As we continue to demonstrate the benefits of this technology in the restaurants we operate, franchisee interest in Digital His Menu His Board should increase, further driving sales and profit growth across the system. ”
Prices on online retailers' sites like Amazon are constantly changing, and they use algorithms and artificial intelligence to monitor competitors, gather insights about individual shoppers, and respond to product and brand interests. said Timothy Webb, an assistant professor at the university. Hospitality and Sports Business Management Program at the University of Delaware. Coupons and other offers are also routinely posted on mobile apps to encourage people to make purchases. “A lot of this stuff is already happening, even if you don't realize it's happening. If you have the Starbucks app and I have the Starbucks app, it's probably different. There will be offers,” Webb said. “They may not be drive-thru and they may just raise prices, but we are already paying different prices for the same items.”
But Wendy's fans are likely to experience modest, rather than drastic, price fluctuations during peak demand, he said. “It's not like a $200 or $300 flight ticket. This is a very competitive industry. I would be shocked if a burger at Wendy's went up $2 or $3 at dinner time. People have too many options. They should just walk down the street and eat at Burger King instead,” Webb said. “The price changes are small here.”