It’s all about supply and demand. That’s why fast food giant Wendy’s is looking to see what the market will bear for its slate of fast fried food offerings with a move to so-called ‘surge’ pricing used by ride sharing companies such as Uber.On its quarterly earnings call, the world’s third-largest burger chain said it would be rolling out ‘dynamic pricing’ starting in the US in 2025. What it means is that the company’s burgers, Frosties and other menu items will cost more — or less — during peak periods of higher or lower demand.On the call, CEO Kirk Tanner said the company will spend USD$20 million to roll out AI-enabled digital menus boards at all its US locations by 2025 that can respond to suggestive selling techniques based on factors such as the weather..“As we’ve previously shared, we are making a significant investment to accelerate our digital business,”Wendy’s spokesperson.That means a Wendy’s Baconator that costs $12.24 in New York City could fluctuate during the day or even vary from location to location. For instance, the New York Post reported that a Dave’s Single costs $5.99 in Newark, NJ, while that same quarter-pound burger costs $8.19 at a Wendy’s in Times Square.Or a frozen Frosty might cost less on a cold winter day compared to a hot summer afternoon.The pricing overhaul is one of ”a number of features” that will be tested in the future, company spokespeople said.“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,” an unidentified spokesperson told Fox News..Users of the Uber ride sharing platform are already familiar with the concept of surge pricing, but it hasn’t been used to sell things such as food.According to various surveys, a majority — about 52% — of consumers see dynamic pricing in general as a form of price gouging.It doesn’t help that Wendy’s is already the most expensive fast food outlet in the US after post-pandemic menu costs rose 35% between 2022 and 2023. .In recent weeks rival McDonald’s has been criticized for selling a Big Mac combo for almost $18 in response to minimum wage hikes that will see workers in California receive $20 an hour starting April 1.On its own earnings call, officials reported that US sales grew 3.4% instead of the 4.7% Wall Street analysts had been expecting.“I think what you’re going to see as you head into 2024 is probably more attention to what I would describe as affordability," CEO Chris Kempczinski said on an earnings call. “Eating at home has become more affordable. The battleground is certainly with that low-income consumer."
It’s all about supply and demand. That’s why fast food giant Wendy’s is looking to see what the market will bear for its slate of fast fried food offerings with a move to so-called ‘surge’ pricing used by ride sharing companies such as Uber.On its quarterly earnings call, the world’s third-largest burger chain said it would be rolling out ‘dynamic pricing’ starting in the US in 2025. What it means is that the company’s burgers, Frosties and other menu items will cost more — or less — during peak periods of higher or lower demand.On the call, CEO Kirk Tanner said the company will spend USD$20 million to roll out AI-enabled digital menus boards at all its US locations by 2025 that can respond to suggestive selling techniques based on factors such as the weather..“As we’ve previously shared, we are making a significant investment to accelerate our digital business,”Wendy’s spokesperson.That means a Wendy’s Baconator that costs $12.24 in New York City could fluctuate during the day or even vary from location to location. For instance, the New York Post reported that a Dave’s Single costs $5.99 in Newark, NJ, while that same quarter-pound burger costs $8.19 at a Wendy’s in Times Square.Or a frozen Frosty might cost less on a cold winter day compared to a hot summer afternoon.The pricing overhaul is one of ”a number of features” that will be tested in the future, company spokespeople said.“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,” an unidentified spokesperson told Fox News..Users of the Uber ride sharing platform are already familiar with the concept of surge pricing, but it hasn’t been used to sell things such as food.According to various surveys, a majority — about 52% — of consumers see dynamic pricing in general as a form of price gouging.It doesn’t help that Wendy’s is already the most expensive fast food outlet in the US after post-pandemic menu costs rose 35% between 2022 and 2023. .In recent weeks rival McDonald’s has been criticized for selling a Big Mac combo for almost $18 in response to minimum wage hikes that will see workers in California receive $20 an hour starting April 1.On its own earnings call, officials reported that US sales grew 3.4% instead of the 4.7% Wall Street analysts had been expecting.“I think what you’re going to see as you head into 2024 is probably more attention to what I would describe as affordability," CEO Chris Kempczinski said on an earnings call. “Eating at home has become more affordable. The battleground is certainly with that low-income consumer."
