It only took 24 hours but Wendy’s has backed down from plans to extort burger lovers for their favourite Baconators in peak hours.The fast food giant said Wednesday it is backing off plans to implement so-called ‘surge pricing’ for its slate of menu items to match prices during periods of higher demand — lunch hour for example.“Wendy's will not implement surge pricing, which is the practice of raising prices when demand is highest. We didn't use that phrase, nor do we plan to implement that practice," the company said in an email to The Associated Press on Wednesday..This month, during a conference call with investors and industry analysts, Wendy’s CEO Kirk Tanner told analysts: "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."The company has previously tried to deploy chatbot enabled drive-thrus, to no avail.Surge pricing is common in industries such as ride sharing and lodging. Last week it was reported that hotel rooms in Vancouver for Taylor Swift’s Eras concerts next December are going for more than 10 times the usual rack rates, or as much as $4,000 a night..Airlines also employ the practice to raise the price of flights during peak periods, such as Saturdays and weekends when fares can be double or triple the midweek rate.But consumers just call it price gouging, plain and simple.Wendy’s is the third largest burger franchise in the world, behind McDonald’s and Burger King, with more than 6,500 locations in Canada and the US.
It only took 24 hours but Wendy’s has backed down from plans to extort burger lovers for their favourite Baconators in peak hours.The fast food giant said Wednesday it is backing off plans to implement so-called ‘surge pricing’ for its slate of menu items to match prices during periods of higher demand — lunch hour for example.“Wendy's will not implement surge pricing, which is the practice of raising prices when demand is highest. We didn't use that phrase, nor do we plan to implement that practice," the company said in an email to The Associated Press on Wednesday..This month, during a conference call with investors and industry analysts, Wendy’s CEO Kirk Tanner told analysts: "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."The company has previously tried to deploy chatbot enabled drive-thrus, to no avail.Surge pricing is common in industries such as ride sharing and lodging. Last week it was reported that hotel rooms in Vancouver for Taylor Swift’s Eras concerts next December are going for more than 10 times the usual rack rates, or as much as $4,000 a night..Airlines also employ the practice to raise the price of flights during peak periods, such as Saturdays and weekends when fares can be double or triple the midweek rate.But consumers just call it price gouging, plain and simple.Wendy’s is the third largest burger franchise in the world, behind McDonald’s and Burger King, with more than 6,500 locations in Canada and the US.
