Comments about the new digital menu board quickly spiraled out of control on the Internet during Wendy’s earnings call, leading consumers to worry that dynamic pricing could affect the price of a chicken sandwich.
On February 15, the chain announced a $20 million investment in a new digital menu board that, according to Wendy’s CEO Kirk Tanner, will enable “more enhanced features such as dynamic pricing and time slot offerings, as well as AI-powered menu changes and suggestive sales.”
“We anticipate that our digital menu board will provide immediate benefits in order accuracy, improved crew experience and sales growth through upselling and consistent sales execution,” he added.
For those unfamiliar with the term, surge pricing is when the cost of an item changes based on demand at a specific time. Also known as dynamic pricing, it is most commonly seen in air tickets and ride sharing.
Kelley Bailie Fechner, director of customer solutions at Datassential, said at the 2022 Chicken Marketing Summit that advancements in ordering technology are giving foodservices the opportunity to test dynamic pricing, automated prompts to upsell menu items, and even artificial intelligence (AI) in drive-thrus. ).
Internet revolt
Reaction to the remarks was swift online. Suffice it to say, the response was not positive.
Rival Burger King said: “We don’t believe in charging people more when they’re hungry.” X, original Twitter.
Another consumer embraced the change as a day trader, debating whether to hold on to them “until the market picks up or sell them now.”
Wendy clarifies
After backlash online, the chain clarified its previous statement, denying any plans to raise prices during peak demand.
“We have no plans to do this and will not increase prices during times when customers visit the most,” Wendy’s said in a blog post. “Any features we may test in the future are designed to benefit our customers and restaurant staff.”
It’s all about messaging
What most consumers don’t realize is that surge pricing may already be in use. Using an app to buy chicken at a food service or retail store? Your application may offer you different prices than other applications. Look for an older, less technical example. When restaurants are less busy, happy hour food charges are lowered to attract customers.
Dynamic pricing can bring many benefits to foodservice. It reduces food waste and improves the ability to match customer needs with employee needs.
But in a world where consumers are tired of paying higher costs for food, messages about these changes must be carefully crafted. Wendy’s says it plans to use dynamic pricing to save customers money when they visit late at night — why aren’t they taking the lead?
To learn more about the consumer trends impacting the chicken industry, plan to attend the 2024 Chicken Marketing Summit, July 29-31, 2024, at Rosebridge Golf Resort & Spa in Birmingham, Alabama. kind event will look ahead to consumers in 2035 and the issues that will impact their protein choices.
For the first time, the summit will have two content tracks. As always, one session will focus on today’s consumer trends, what to expect in 2035, and how advanced digital technologies will impact how chicken is sold and marketed in the future. The second content track will explore how the industry can meet consumer expectations by adapting new and existing technologies to raise and process broiler chickens, using fewer resources and improving welfare, food safety and convenience.
Registration is now open for the 2024 Chicken Marketing Summit. For more information, please visit www.chickenmarketingsummit.com.