Wendy’s will start experimenting with surge pricing, like Uber and LyftThe company will launch digital menus at all of its U.S. restaurants by 2025, according to the company Company’s February earnings conference call. In the test, burgers, frostings and other menu items will have “dynamic prices” that will cost more when demand increases.
“Starting as early as 2025, we will begin testing additional enhancements such as dynamic pricing,” Wendy’s CEO Kirk Tanner said on a Feb. 15 earnings call. “We plan to invest approximately $20 million to roll out digital menu boards at all U.S. company-operated restaurants by the end of 2025.”
Part of the benefit of these digital menu boards is that you can change the prices at will. Consumers are familiar with surge pricing from ride-sharing services like Uber and Lyft, where prices fluctuate widely based on demand. Dynamic pricing is a relatively new concept in the fast-food world, with little precedent. Liquidity prices change taking into account supply, demand, competitor pricing and other external factors that can be calculated algorithmically.
In New York City, a serving of Wendy’s bacon costs $12.24, but that price can fluctuate throughout the day based on dynamic pricing. Burger prices can go up during lunch or go down on a leisurely afternoon. Wendy’s did not provide details on the extent of the price movement.
Tanner expects dynamic pricing to lead to an immediate increase in sales, but it’s a risky approach. A majority of consumers (52%) say dynamic pricing amounts to price gouging, and 65% say it makes it more difficult to decide where to eat. Capterra Survey.
This isn’t Wendy’s first attempt at stuffing tech into your bag.The company originally planned to launch a AI chatbot-powered drive-thru Come back in May.However, it was later discovered that the secret technology behind some of these experiences Really just human.The company also announced A group of self-driving robots living in a tunnel Helping you deliver orders in 2023.
Wendy’s hopes we’re all used to the high prices for ride-sharing services and won’t mind when it’s served. The company notes that this is just the beginning of a test made possible through their digital menus.
A Wendy’s spokesperson told Gizmodo on Tuesday that its dynamic pricing will also offer discounts during off-peak times of the day. The fast-food chain said the changes will “increase foot traffic” during slower times of the day. Wendy’s did not comment on the peak price increases but confirmed the changes could happen as early as next year.
this story first appeared exist Gizmo.