Wendy's To Start Testing Dynamic Pricing Plans

Prepare Your Palates: The Ever-Changing Prices of Wendy's

Daring explorer, open your mind to the unknown, as Wendy's is launching a brand-new pricing scheme called dynamic pricing.

Discover the intricacies of prices that change according to demand and time. How much will you lose from your next Wendy's feast, then? It's time to solve the mystery…

UPDATE: Wednesday, Feb. 28, 2023 at 9 a.m.

Following the publication of this story on Feb. 27, Wendy's reached out with the following statement regarding its dynamic pricing plans: "Earlier this month we issued our fourth quarter and full year 2023 earnings results and included an update on investments we are making in our digital business. One initiative is digital menuboards, which are being added to U.S. Company-operated restaurants. We said these menuboards would give us more flexibility to change the display of featured items. This was misconstrued in some media reports as an intent to raise prices when demand is highest at our restaurants. We have no plans to do that and would not raise prices when our customers are visiting us most. Any features we may test in the future would be designed to benefit our customers and restaurant crew members. Digital menuboards could allow us to change the menu offerings at different times of day and offer discounts and value offers to our customers more easily, particularly in the slower times of day. Wendy's has always been about providing high-quality food at a great value, and customers can continue to expect that from our brand."

What is the price of food at Wendy's? As the fast-food business is ready to introduce a new pricing plan, the answer to that question may change frequently in the future.

Wendy's revealed intentions to begin testing "dynamic pricing" at its restaurants as early as 2025 during a recent earnings call. This strategy, also referred to as "surge pricing," involves companies changing their rates in response to demand, the time of day, and other variables.

By the end of 2025, Wendy's intends to have installed new digital menu boards at all of its company-owned locations across the United States, having spent about $20 million on the project. Because the upgrade will make it possible for Wendy's restaurants to swiftly and simply adjust their prices, it will play a significant role in the implementation of the dynamic pricing strategy. 

The firm added that surge pricing "may 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" in a statement that was shared with TODAY.com.

It remains to be seen, though, how Wendy's patrons would react to the price plan. Following pricing increases, other fast-food restaurants, such as Taco Bell and McDonald's, have been the target of intense internet criticism in recent months. Although Wendy's hasn't disclosed many specifics regarding their dynamic pricing approach, many are already objecting to the plan, fearing that the business will become more expensive.

"I'm going to stop eating at Wendy's as of today. One customer said on X, the social networking platform that was once known as Twitter, "Charging'surge pricing' on food because you are busy is wrong."

"If Wendy's really does surge pricing that's my last time eating there," another  wrote .

In response to inquiries on their dynamic pricing plans and the criticism, Wendy's provided Eat This, Not That! with the following statement:

"As we previously disclosed, we are accelerating our digital business by making a large investment in technology. These investments will allow us to update the menu more readily and provide discounts and value offers to our consumers through innovations like digital menu boards, which will be implemented in select U.S. restaurants. This flexibility will also allow us to evolve our loyalty program."

"Wendy's has always been about providing high-quality food at a great value to our customers and this recent investment will continue that by driving traffic and providing value during slower parts of the day," the statement continued.

"As early as 2025, we plan to test a number of features such as AI-enabled menu changes and suggestive selling based on factors such as weather that we think will provide great value and an improved customer and crew experience."

Frequently Asked Questions

What is dynamic pricing and how does Wendy's plan to implement it?

Dynamic pricing, also known as surge pricing, is a pricing strategy where businesses adjust prices based on demand, time of day, and other factors. Wendy's plans to implement dynamic pricing by installing digital menu boards that allow for quick and easy price adjustments.

When is Wendy's expected to start testing dynamic pricing?

Wendy's plans to start testing dynamic pricing as early as 2025. The exact date may vary depending on the development and deployment of the digital menu boards.

Why is Wendy's implementing dynamic pricing and how do customers feel about it?

Wendy's believes dynamic pricing will allow them to be competitive, flexible with pricing, motivate customers to visit, and provide great value. However, some customers have expressed concerns that the pricing strategy may make Wendy's less affordable and may lead to higher prices during peak hours.

Conclusion

Wendy made a calculated decision to increase company flexibility and competitiveness by using dynamic pricing.

Although some customers might be worried about future price hikes, Wendy's has reassured them that it will still provide excellent cuisine at a reasonable price.

Like any change, it will take some time for customers to fully comprehend and accept Wendy's new pricing plan, but the firm is still optimistic that this investment will improve the overall customer experience.