Wendy’s to test ‘surge pricing,’ meaning you could pay different things at different times
The price of your next meal at Wendy’s could vary depending on the time you place your order.
On an earnings call earlier this month, Kirk Tanner, the president and CEO of Wendy’s, announced that the company will invest about $20 million into digital menus at all U.S. company-operated restaurants and begin testing dynamic pricing by 2025.
Dynamic pricing is a fluctuating price strategy based on external factors, including supply, demand, and time of day— think “surge pricing” for ride-sharing apps such as Uber or Lyft.
Tanner said the digital menus will improve order accuracy, grow sales with upselling and merchandising, and improve the crew experience, according to Nation Restaurant News.
“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.
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.
Nation Restaurant News reports Wendy’s is targeting $6,000 in breakfast sales per restaurant per week.