The Riverside Press-Enterprise
Wendy’s backtracks plan for surge pricing after backlash
Company now says it ‘would not raise prices when our customers are visiting us most’
No, Wendy’s Co. says, there won’t be surge pricing on cheeseburgers and Frostys.
The fast-food chain has moved to clarify comments on its fourthquarter earnings call earlier this month about an upcoming dynamic pricing test. The program could be in effect by 2025 as part of a $20 million investment in digital menu boards for companyoperated stores. The plan offers Wendy’s “more flexibility” to display featured items, but the company is now saying that it doesn’t intend to use that to hike prices at busy times.
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 Aienabled menu changes and suggestive selling,” he said. “As we continue to show the benefit of this technology in our companyoperated restaurants, franchisee interest in digital menu boards should increase, further supporting sales and profit growth across the system.”
“We have no plans to do that and would not raise prices when our customers are visiting us most,” Wendy’s said in a statement on its website Tuesday. “Any features we may test in the future would be designed to benefit our customers and restaurant crew members.”
Wendy’s came under fire on social media after Tanner’s comments, which some interpreted as calling for Uber-like surge pricing when demand is high.
Tanner, a longtime Pepsico executive, became Wendy’s CEO earlier this month.
One key competitor already is looking to capitalize on Wendy’s blunder.
Burger King is offering a free Whopper with a $3 purchase through its app for a limited time, saying, “we don’t believe in charging people more when they’re hungry,” according to a post on the social media platform X.
“The only thing surging at BK is the flame,” the brand said, in a reference to how its burgers are cooked, using the fire emoji instead of the word flame.
Wendy’s isn’t the first burger chain to use the digital display menu boards. Mcdonald’s Corp. introduced them years ago to announce promotions and ease menu changes.
To be sure, companies can still use the displays to easily hike prices. But Wendy’s said it’s focused on offering “high quality food at a great value,” and the digital menus would allow the company to easily “offer discounts” to its customers,
The chain declined to comment beyond the statement on its website.