When you hear the phrase “dynamic pricing” or “surge pricing” what’s the first thing that comes to mind? Ticketmaster? Uber? Whatever you think of I bet it’s not fast food.
However, starting next year that might change as one of the largest fast food chains in the United States is set on testing out the controversial practice.
Keep reading to learn more.
Wendy’s is expected to test an “Uber-style” surge-pricing model beginning in 2025.
For those unfamiliar with the practice, dynamic pricing is when a product’s cost fluctuates based on demand.
“Beginning as early as 2025, we will begin testing a variety of enhanced features on these digital menu boards like dynamic pricing, different offerings in certain parts of the day, AI-enabled menu changes and suggestive selling based on factors such as weather,” a spokesperson told Fox News.
The new approach to sales was announced during a recent earnings call.
“Dynamic pricing can allow Wendy’s to be competitive and flexible with pricing, motivate customers to visit and provide them with the food they love at a great value,” the spokesperson said.
Wendy’s already sells their menu items for different prices depending on location. According to The Post, a Dave’s Single costs $5.99 at a location in Newark, NJ, while the same burger costs $8.19 in Times Square.
News of dynamic pricing at Wendy’s comes on the heels of McDonald’s facing heavy backlash for increasing prices on its Big Mac combo.
The public’s outcry caused the company to issue a statement saying they would focus on affordability.
Do you think it’s right for a fast food chain like Wendy’s to introduce surge pricing? Let us know your thoughts on Facebook.
Source: en.newsner.com
