Wendy’s says it has no plans to use ‘surge pricing’
Wendy’s says it has no plans to raise the prices of menu items during peak demand at its restaurants, clarifying comments its CEO made earlier this month.
On a February earnings call, Kirk Tanner, the president and CEO of Wendy’s, announced that the company would begin testing a number of features including “dynamic pricing” –or fluctuating price strategy based on external factors, including supply, demand, and time of day– by 2025.
“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,” Tanner said on the call.
In a later statement, however, Wendy’s backed off the idea that food prices will fluctuate during the day, according to reports by the Associated Press and Reuters.
“Wendy’s will not implement surge pricing, which is the practice of raising prices when demand is highest. We didn’t use that phrase, nor do we plan to implement that practice,” the company said late Tuesday in a prepared statement reported by AP.
The fast food chain told the Associated Press that any features it decides to test in the future “would be designed to benefit our customers and restaurant crew members.”
Earlier this month, Tanner said Wendy’s plans to invest about $20 million into digital menus. Wendy’s will also invest more resources into its breakfast menu. Tanner said the fast food chain is planning an advertising push behind its four-year-old breakfast platform.