Wendy's to start testing Uber-style surge-pricing

[brooklynite]

WNBC New York

In mid-February, Kirk Tanner, the new CEO and president of Wendy’s, shared with analysts that they would be rolling out new plans to improve company profits, including digital menu boards that will be more easily able to change the prices of items, as well as testing dynamic pricing and daypart offers, according to Nation’s Restaurant News.

Tanner explained that they plan to invest about $20 million to “roll out digital menu boards to all U.S. company-operated restaurants by the end of 2025 and approximately $10 million over the next two years to support digital menu board enhancements for the global system.”

The digital boards are meant to improve the order accuracy and increase sales by upselling certain menu items.

By 2025, the fast food restaurant chain will begin testing dynamic pricing, which is a time-based pricing strategy that companies use to increase or decrease prices for their services or items depending on the time and demand. It is similar to "surge prices" on the Uber app when there are few drivers or the demand for a driver is higher, depending on the location or time of day.

[wcmagumba]

1. As a consumer this sounds like a bad idea...

Won't purchase at Wendy's if this happens.

[LiberalFighter]

2. Will they have dynamic wages for their employees too?

How about dynamic salaries for the CEO?

[dutch777]

9. You are funny. Employee wages, no. CEO most assuredly bonus time if the scheme works!

[FalloutShelter]

3. Another bad food chain bites the dust.

[Hugin]

6. Dunning-Kruger strikes again.

It is tragic Jerry Lewis is no longer around to host a telethon to find a cure for this scourge.

[onethatcares]

22. ain't no cure for

Greed

[Hugin]

25. There is an immunization...

People recognizing greed. Is it any wonder they fear education and critical thinking most of all?

[GuppyGal]

4. How disgusting to charge people more during 'eating' hours...fuck you Wendys and all that follow you....it won't work

with me.

[Hugin]

5. I kinda like walking into a fast food joint with a firm idea of what it's going to cost.

Unlike Uber, in the fast food market there is a competitor right next door who’s pricing is predictable.

[hlthe2b]

7. If I didn't refuse to frequent Wendy's before, I certainly will now...

Who wants to go somewhere where the price is constantly changing and you have no way of knowing what you will pay? I don't frequent fast food normally but was shocked when I brought an order back from (I'll just say unmentioned burger restaurant) and had to add about 25% of my own funds because no one had estimated even close to current prices. All I can say is that it is a rare hamburger or chicken sandwich worth more than $7 today (not California or NY)--and if I found it was simply because of the time of day I'd gone there, I think I would have been even angrier.

Meh, I can eat healthily and more cheaply without the aggravation. They are biting the many hands that made them a success.

[Hugin]

10. A CEO is incapable of understanding why a change of a few cents...

On a meal would be a big deal. Obviously, he’s never been where I’ve been in life.

[Freddie]

8. I like Wendy's

For now anyway. I treat my granddaughter to lunch once a week and you get a lot of food in the Biggie Bag for $5.99. Plus you get free stuff by using the app.

[zeusdogmom]

13. Sadly, that price is probably going to change.

Dave Thomas is no doubt rolling in his grave.

I like Wendy’s burgers and fries. (no judgement please. To each his own) Seldom eat there any more - no longer my habit to eat out. But I did stop in one day last week when errands took way longer than planned to complete, paid a lot more than I used to for my meal and enjoyed every bite of it. 😋

I’m glad you can treat your granddaughter to lunch. She is a lucky kid.

[Wonder Why]

23. That "free stuff" is costing you, your and your granddaughter's privacy and personal information.

That means they know how often you go, what you buy, that you have a child with you, where you live along with all the info you provided when signing up. That, of course, plus anything else they can scrape up from your phone so you now have yet another corporation besides Google collecting and selling your data. You may not care, but your granddaughter may when she grows up and the fascists running the country or state demand that information from companies to make sure she is following their rules.

I wish Consumer Reports would put the above information on every "connected" product they praise for its "convenience". The only time they mention it is separately in a small article disassociated from product ratings.

[Johnny2X2X]

11. They can keep their toxic food

It’s poison.

[dutch777]

12. Don't care for me but busy working folks that just need to swing by for dinner on the way home...

...I can see them making other choices if the $$$ matters. My kid is well to do and his family lives in an area where DoorDash and UberEats and such is readily available with lots of options and is their "we are too busy to cook" fall back on many nights. But for those less fortunate, maybe working two jobs and with kids, already inflated prices for the basics and maybe not having the time and energy to cook could be a real problem. It is up to Wendy's but somehow think if they do it and Burger King and McD's don't, not sure it will be that profit enhancer Wendy's planned.

[Sympthsical]

18. They just don't get it

No one's going to McDonald's because it's cuisine. They're going because it is cheap.

It's not cheap anymore. I'll let Jordan The Stallion handle this one:

https://youtube.com/shorts/5b0z7R9s9K4?si=0xTKG2_VtPrpavCd

[dutch777]

19. Yep, convenient and cheap. And you have to have both.

[JI7]

14. I guess it could work if Wendys is the only food option available

Does this mean food will be more expensive during busy times so food will be more expensive when the lines are longer ?

Or will it be more like happy hour where they offer discounts during slow periods ?

[Happy Hoosier]

16. Following usual business practices....

They'll offer a modest discount in slower times, and a large price increase for high-demand times. The house ALWAYS wins.

[Happy Hoosier]

15. Simply put, I'll stop eating there.

I don't eat fast food a lot, but when I do, Wendy's is a top choice. If they start gouge-pricing, I will pick another establishment. It's that simple.

[lark]

17. Wendys violates labor laws by making staff work through lunches & not allowing breaks.

They are horrible!

[bif]

20. Just one more reason not to eat that garbage

It's been at least 15 years since I ate fast food.

[BComplex]

21. I like the old saying: "If it ain't broke, don't fix it".

Somehow business schools got the bright idea that you need to "change" stuff to get people excited about it. That's stupid. Usually the only people that get excited about it are the people sitting around the conference table trying to make the stock go up by means other than giving people value for their money.

[tritsofme]

24. I think they'll soon find their customers "testing" other establishments.

What an incredibly stupid idea.

[Blue Idaho]

26. The beatings will continue

Until profits improve… what a joke.

[bucolic_frolic]

27. Price gouging based on market conditions

How is this any different than price increases for water, gas, food following a hurricane?

[Mosby]

31. Exactly, and it needs to be made illegal.

Just like price gouging during severe weather events, flooding, earthquakes etc.

[bucolic_frolic]

34. It's a Republican Pricing Model. The rich can afford it. All others go home and wait. /nt

[niyad]

28. Wendy's is one of very few fast food places I ever go to (mostly for the

frosties). I won't miss it.

[bucolic_frolic]

30. Wendy's of the Dave Thomas era was really good

SuperBar. I recall Biggie Frosty's for $1. I mean 8" tall.

I haven't eaten in a Wendy's since 2012. I did go in once, about 3 years ago, and had sticker shock. Walked out. For a $6 burger I can go to 5 Guys, or cook my own. Fries with de-foamers are awful.

[Aristus]

32. Back when I was young, single, and broke, Wendy's' all-you-can-eat salad bar

kept me from starving. And it was a three minute walk from my tiny studio apartment.

I really don’t think the all-you-can-eaters actually ate enough to drive down the profit margins of Wendy’s. But no doubt some eager-beaver MBA junior executive proposed ending the salad bar anyway. You know how they think: every penny that doesn’t go into my pocket is a penny stolen.

[MichMan]

38. Salad bars went away at a lot of places for health reasons

Too many people touching the food

[Aristus]

39. That's probably true.

Toxic customers ruin everything.

[Hugin]

33. Thomas also offered education benefits for his employees...

At the time. I had a few friends who did well with that.

Instead of diddling with the cash register, my first suggestion would be to improve the food.

I am dumbfounded when a CEO seems unaware that he runs a fast food restaurant chain.

[MichMan]

37. Apparently you haven't been to 5 Guys in awhile

About $10 there

[Initech]

29. There will be an absolutely massive boycott against this.

That's the last time I ever set foot in a Wendy's, there's plenty of other places to take my business.

[XanaDUer2]

35. Wendy's has gone to shit

Used to be great. Cold fries, grey small messy burgers. I won't miss it

[Marcus IM]

36. AIn't capitalism great? Charge the poorest and w/the least flexible job hours the most.

Where I come from it's the other way around.