Wendy's restaurants will test new system with higher prices during peak demand times

[short ornery norwegian]

Is this the wave of the future - or a really bad idea? from the Strib:

Diners may soon see varied menu prices for french fries and Frostys in the Wendy's drive-thru at lunchtime. The restaurant chain will soon test out dynamic pricing with customers.

The pricing tactic, popularized by ride-share apps and ticket marketplaces, shifts prices based on demand. During peak times like lunch or dinner, drive-thru prices could rise beginning in 2025.

The fast-food company will invest $20 million into AI-powered digital menu boards, Wendy's President and CEO Kirk Tanner said in an earnings call earlier this month. The boards will allow for the restaurant to change pricing on the go and help encourage upsales on orders.

and here is more information from another site:

The fast-food chain has confirmed plans to test “dynamic” pricing on its menu next year that would allow individual restaurants to increase the price of items at anytime based on location, demand and time of day, according to Today.

With surge pricing in place a cheeseburger that sells for $3 at 3:30 p.m could cost $4 an hour later if the demand is high enough ahead of dinnertime.

Wendy’s has not said which locations will be used for the testing period.

 

[Ope3]

Backtrack?

https://www.cnn.com/2024/02/28/business/wendys-dynamic-pricing-surge-explained/index.html

 

[LakevilleBro]

CNN+ lasted longer than this announcement.

 

[BleedGopher]

I’m surprised more industries haven’t introduced dynamic pricing already. It works fine in airline and hotels and no one blinks an eye. Same with ride share.

Go Gophers!!

 

[Ope3]

I’m surprised more industries haven’t introduced dynamic pricing already. It works fine in airline and hotels and no one blinks an eye. Same with ride share.

Go Gophers!!

A lot (majority?) of Pro/College sporting events too. Lots of concerts as well.

 

[MplsGopher]

I’m surprised more industries haven’t introduced dynamic pricing already. It works fine in airline and hotels and no one blinks an eye. Same with ride share.

Prices on goods do change over time. So there is some level of semantics of how fast a change qualifies for dynamic.

That said, fares/tickets are far different things than goods.

It should be illegal for goods to change prices within a single day, maybe even week.

 

[jamiche]

The difference between Wendy's and an airline or a sports team is the consumer usually can't. find another flight or sporting event that works as well. If the Wendy's is busy on a Tuesday at 12:20, there's another fast food joint (or five) very close by. Too much consumer choice coupled with convenience to flex pricing.