Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
Editorials & Other Articles
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Burger chain Wendy's looking to test surge pricing at restaurants as early as next year
https://apnews.com/article/wendys-surge-pricing-tanner-burger-dynamic-9417bc235bbcd13d82966d04a6ba42bdBurger chain Wendy’s looking to test surge pricing at restaurants as early as next year
By MICHELLE CHAPMAN
Updated 10:06 AM CST, February 27, 2024
Wendy’s is looking to test having the prices of its menu items fluctuate throughout the day based on demand, implementing a strategy that has already taken hold with ride-sharing companies and ticket sellers.
During a conference call earlier this month, Wendy’s CEO Kirk Tanner said that the Dublin, Ohio-based burger chain will start testing dynamic pricing, also known as surge pricing, as early as next year.
“Beginning as early as 2025, we will begin testing more enhanced features like dynamic pricing and daypart offerings, along with AI-enabled menu changes and suggestive selling,” he said. “As we continue to show the benefit of this technology in our company-operated restaurants, franchisee interest in digital menu boards should increase, further supporting sales and profit growth across the system.”
Wendy’s Co. plans to invest about $20 million to launch digital menu boards at all of its U.S. company-run restaurants by the end of 2025. It also plans to invest approximately $10 million over the next two years to support digital menu enhancements globally.
....
--------------------------------------------------------------------------------------------------------------------
So the more cars ahead of you in the drive-through, the more you have to pay
Genius move
“Consumers, by and large, understand that companies need to make a profit. But, when a company appears to be sticking it to a consumer in a moment of need, the customer resents it,” said John Dinsmore, a marketing professor at Wright State University in Dayton, Ohio, who researches dynamic pricing.
Some 52% of consumers surveyed by software company Capterra last year said dynamic pricing in restaurants is the equivalent of price gouging.
A good example is Coca-Cola, according to Dinsmore. “Around the turn of the century, they experimented with vending machines that raised the cost of drinks based on the outside temperature. The hotter the weather, the more expensive the soda. Consumers hated it. They understandably felt exploited. It violated consumers’ sense of price fairness,” he said. “I think you are going to see a similar response to Wendy’s dynamic pricing.”
Some 52% of consumers surveyed by software company Capterra last year said dynamic pricing in restaurants is the equivalent of price gouging.
A good example is Coca-Cola, according to Dinsmore. “Around the turn of the century, they experimented with vending machines that raised the cost of drinks based on the outside temperature. The hotter the weather, the more expensive the soda. Consumers hated it. They understandably felt exploited. It violated consumers’ sense of price fairness,” he said. “I think you are going to see a similar response to Wendy’s dynamic pricing.”
https://www.usatoday.com/story/money/2024/02/27/wendys-menu-surge-pricing/72761277007/
29 replies
= new reply since forum marked as read
= new reply since forum marked as read
Go out of your way to piss off customers?
Fuck off, Wendy's!
