“Guests Will Be Very Upset”: Experts React To Wendy’s New “Uber-Style” Surge Pricing
A popular international fast-food chain is planning to experiment with a new pricing model where the cost of menu items will vary depending on the level of demand, similar to the one used by the ride-hailing service Uber. The anticipated test is now causing concern over fluctuating fares amongst consumers and industry experts alike.
Wendy’s “Uber-style” surge-pricing model, where the cost of menu items will fluctuate throughout the day based on requests, suggests that, for instance, a Dave’s burger, the eatery’s signature burger, will cost more during lunchtime or dinner rush.
The restaurant’s intention to implement the fluctuating pricing strategy has been described as “high-stakes,” as it’s scheduled to undergo a significant and potentially risky implementation process in the upcoming year.
Moreover, the pricing strategy could potentially disadvantage American consumers who are already struggling with inflation, particularly those who may not have the option to eat their meals during “off-peak” hours.
Wendy’s CEO Kirk Tanner reportedly announced the new surge-pricing model on a call with investors, highlighting that the Ohio-based company will invest $20 million on high-tech menu boards that will be able to update prices in real-time without incurring additional overhead costs.
Kirk, who rose to the chief role earlier this month, reportedly said: “As we continue to show the benefit of this technology in our company-operated restaurants, franchise interest in digital menu boards should increase, further supporting sales and profit growth across the system.”
Wendy’s is planning to experiment with a new pricing model where the cost of menu items will vary depending on the level of demand
Image credits: Siyuan Lin/Unsplash
The CEO didn’t specify a maximum limit on how much prices could increase under the new dynamic pricing model, nor did he mention whether the base price of items would decrease during less busy times.
A Wendy’s spokesperson told The New York Post: “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.
“We will test a number of features that we think will provide an enhanced customer and crew experience.”
Prices on items, like the iconic Dave’s Single, already vary depending on location. Wendy’s has more than 6,000 locations nationwide in the US.
A Dave’s burger, which is named after the company’s founder, Dave Thomas, typically includes a quarter-pound beef patty, cheese, lettuce, tomato, pickles, onions, ketchup, and mayonnaise on a toasted bun.
Wendy’s intention to implement the fluctuating pricing strategy has been described as “high-stakes”
Image credits: Wendy’s
Its price has already been affected by the new pricing model, as the tasty treat costs $5.99 at an outpost in Newark, New Jersey, while that same quarter-pound burger costs $8.19 at a Wendy’s in Times Square.
Ted Jenkin, CEO of Atlanta-based wealth management firm oXYGen Financial, told The Post: “Guess people better change their lunch hours from 2 pm to 4 pm.
“With all of the concern of rising prices, the last thing you want to have to consider is how much will it cost you for a burger and fries depending on the time of day.”
The financial planning expert added: “This isn’t any better than what we see going on with guilt tipping right now.
“It will prey on the fact that people can’t remember what the price was yesterday or the week before.
“It isn’t a Taylor Swift concert. It’s a burger, fries, and a Frosty.”
Wendy’s new pricing model is similar to Uber’s surge pricing because it involves adjusting prices based on demand levels
Image credits: Uber Blog
Industry experts have reportedly anticipated that Wendy’s may face backlash from hangry customers when they officially implement the new pricing strategy.
Restaurant analyst Mark Kalinowski told The Post: “There are people who view dynamic pricing as a rip-off.”
A separate restaurant consultant, Arlene Spiegel, echoed Mark’s opinion: “It won’t fly and guests will be very upset.
“You can’t surprise a guest with, ‘Your meal will cost another 50 cents or $1 today.’”
Wendy’s is the most expensive fast-food chain in the US after menu costs rose 35% due to inflation between 2022 and 2023, according to data from consumer transparency platform PriceListo.
As per the platform, the most expensive Wendy’s item is “2 Spicy Chickens, 2 JBCs, and 4 SM Fries,” which costs $18.96.
Meanwhile, the cheapest item on the fast-food menu is Crispy Chicken Nuggets, which costs $1.56. The average price of all items on the menu is currently $6.03.
Wendy’s is the most expensive fast-food chain in the US
Image credits: Wendy’s
Nevertheless, franchise owners have reportedly argued that the new dynamic pricing is primarily aimed at improving operational efficiency, such as managing kitchen workload during busy periods, rather than solely focusing on increasing profits.
Faizan Khan, a Dog Haus franchise owner, said at the recent Restaurant Finance and Development Conference, according to Food & Wine: “I think there’s a lot of room for consumers in terms of price amounts they’re going to accept.
“Generationally, I think we’re seeing this being acceptable.”
The success experienced by industries such as airlines, hotels, and transportation, which have also implemented dynamic pricing models to adjust prices based on demand, suggests that other fast-food chains, like McDonald’s and Burger King, are likely to closely monitor Wendy’s experiment with the new strategy.
Restaurant analyst Mark admitted: “I think it’s just a matter of time before it becomes commonplace in the restaurant industry because it’s a way to generate more profits by being smarter about your pricing.”
Wendy’s anticipated pricing model incited various reactions
I'm sure what they are thinking of doing is lowering their prices in off-peak times. Right? For sure. /s What a joke. This'll make it so complicated as you'll never even have a rough idea of what your food will cost.
They're going to make a change to make less money? Hahahahahahahahaha.
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They already have the highest prices? Makes you wonder if Wendy's is concerned about their ability to stay in business and thinks this is the way to solve that. Seems like a sure fire way to permanently lose more customers though.
This makes me sad because I actually love Wendy’s. The closest one is almost 3 hours away because I live in the middle of büttfück nowhere so it’s a rare treat for me. Maybe next time I’m in the city I’ll find another treat :(
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I wonder if it has occurred to them that fast food chains serve no purpose. It would be detrimental if certain industries disappeared. But fast food chains could disappear tomorrow and the only impact would be maybe less obesity. It will be interesting to see how the consumer reacts. We'll all b***h, of course. But if wendys doesn't go bankrupt because of this, I will lose what little faith I have left in the American consumer.
Actually like Wendy's as far as fast food. But I sure as heck won't be buying their food if they're price gouging at this blatant level.
So as someone asked are the employees gonna be paid more during those surge hours? Yeah, l didn't think so. It doesn't seem a very smart move in a country with so many fast food options.
I dont go to Wendys often maybe a few times a year but it will be 0 times a year from here on out.
It's noon. Before you on the road is a Wendy's, right beside a Burger King. Are you going to wait 2 hours for Wendy's prices to go down or are you going to get a whopper?
This is one of the funniest (read as stupid) things I have seen. Let me get this straight, if I have to wait longer for my food because the place is busy, I have to pay more? Who in their right mind, would think that is a good idea? Now if they had reverse surge prices, as I get a lower price if I have to wait longer, then that might be something. Otherwise, there are plenty of other fast-food places. that aren't as stupid.
I don't think they'll get away with doing this in their international locations, we have laws against this sort of thing in many countries when it comes to food pricing.
If you spend a little bit of money, you can purchase a jar of bacon jelly and make your own baconator and loaded fries. If you don’t have time to render bacon grease. And if you get a, what I I call an airline bottle of bourbon, you can play with he flavor and poof a bourbon baconator (ours was removed from the menu) As for the Wendy’s fries. A few moments extra when you cut up a tater and into either a tease fryer or air fryer - worth the effort.AND you can freeze them for another time. I will miss you Wendy’s but thanks for the challenge.
Never been to a Wendy's. is it any good? (I'll be in the US in summer...)
Back in the day (meaning at least until the ‘90s), they were a step up in quality from McDonald’s. They were different. Their burgers are square so they can store them more efficiently. They were also the first fast food place to offer customized burgers, way before the others did, so if you only liked certain condiments, or preferred none at all, you could order your burger with only the stuff you like in it, instead of having to remove the standard condiments you didn’t like but other places made you take anyway—-and did it all while staying pretty close to the pricing of other fast food restaurants. However, the quality of their food has been in decline since Dave Thomas, the founder, retired (he died in 2002), and now it looks like the new and incredibly out of touch with reality CEO is going to finish flushing what used to be a good and profitable company completely down the toilet. If the company doesn’t boot that idiot soon, and/or no other company or individual comes along to save the company and restore it to its original quality and pricing, I predict Wendy’s will be shuttering every single North American (because you know damned well they’ll try the same s**t with our neighbors to the north), if not global, location sooner rather than later.
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I don't think we have to look up their recent increases in net profits, do we?
So don't go. Then they'll go out of business. Look, they can do this because people/sheep/idiots continue to buy their products. It's like football - Overpriced tickets, merchendise, food, times run by Sky (so travel is a nightmare) etc yet the fans STILL go and pay the clubs for tickets, shirts, burgers... See the problem? The seller isn't going to change their business model if they see a market...
I like wendy's but not that much. They're not the only place that sells burgers. I'll go to the others instead. I don't plan on going back to wendy's.
With the number of fast food chains closing stores where I live, it will be interesting to see if the 2 almost brand new Wendy's survive this nonsense. The Carl's Jr, KFC, and Burger King right off the freeway all closed in the last couple of years.
Wendy's used to be affordable. I went to my local location a few days ago. $10 for a Baconator (just the burger), $9 for a Dave's single. Combos varied between $16 and $19. Even the "$5 Biggie bag"....was $7. The guy in front of me ordered a spicy chicken sandwich and a small fries (no drink)...his total was over $17. I ended up buying nothing.
I liked their spicy chicken sandwich. They changed it within the past year to be thinner and greasier. I'll pass on going back.
This is too bad. Wendy's is my fave fast food but I can live without eating there ever again.
First time I come in and see to he surge price I will assume that they just raised there normal price and start going someplace cheaper. On the other hand there burger have gone down hill so I stopped eating at Wendy's.
They ruined their food years ago when they changed up everything - thick tasteless buns, horrible salt-sticks masquerading as fries, and pickles thicker than a pencil.
That is price gouging and it's illegal, not "efficiency". What they are doing is the same as raising prices during a natural disaster, taking advantage of people who have no other options. Expect lawsuits and boycotts.
It might be illegal on paper, but corporations have been pulling this s**t en masse since 2020, and have been getting away with it. So sick and tired of corporations not being held accountable for breaking laws, but holding out their hand for a bailout at the first opportunity.
Load More Replies... I’m not going to threaten to boycott over this, but I can’t imagine going to a place that does this.
That’s incidental boycotting, based on pricing rather than for a social or political cause.
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I'm sure what they are thinking of doing is lowering their prices in off-peak times. Right? For sure. /s What a joke. This'll make it so complicated as you'll never even have a rough idea of what your food will cost.
They're going to make a change to make less money? Hahahahahahahahaha.
Load More Replies... They already have the highest prices? Makes you wonder if Wendy's is concerned about their ability to stay in business and thinks this is the way to solve that. Seems like a sure fire way to permanently lose more customers though.
This makes me sad because I actually love Wendy’s. The closest one is almost 3 hours away because I live in the middle of büttfück nowhere so it’s a rare treat for me. Maybe next time I’m in the city I’ll find another treat :(
Load More Replies... I wonder if it has occurred to them that fast food chains serve no purpose. It would be detrimental if certain industries disappeared. But fast food chains could disappear tomorrow and the only impact would be maybe less obesity. It will be interesting to see how the consumer reacts. We'll all b***h, of course. But if wendys doesn't go bankrupt because of this, I will lose what little faith I have left in the American consumer.
Actually like Wendy's as far as fast food. But I sure as heck won't be buying their food if they're price gouging at this blatant level.
So as someone asked are the employees gonna be paid more during those surge hours? Yeah, l didn't think so. It doesn't seem a very smart move in a country with so many fast food options.
I dont go to Wendys often maybe a few times a year but it will be 0 times a year from here on out.
It's noon. Before you on the road is a Wendy's, right beside a Burger King. Are you going to wait 2 hours for Wendy's prices to go down or are you going to get a whopper?
This is one of the funniest (read as stupid) things I have seen. Let me get this straight, if I have to wait longer for my food because the place is busy, I have to pay more? Who in their right mind, would think that is a good idea? Now if they had reverse surge prices, as I get a lower price if I have to wait longer, then that might be something. Otherwise, there are plenty of other fast-food places. that aren't as stupid.
I don't think they'll get away with doing this in their international locations, we have laws against this sort of thing in many countries when it comes to food pricing.
If you spend a little bit of money, you can purchase a jar of bacon jelly and make your own baconator and loaded fries. If you don’t have time to render bacon grease. And if you get a, what I I call an airline bottle of bourbon, you can play with he flavor and poof a bourbon baconator (ours was removed from the menu) As for the Wendy’s fries. A few moments extra when you cut up a tater and into either a tease fryer or air fryer - worth the effort.AND you can freeze them for another time. I will miss you Wendy’s but thanks for the challenge.
Never been to a Wendy's. is it any good? (I'll be in the US in summer...)
Back in the day (meaning at least until the ‘90s), they were a step up in quality from McDonald’s. They were different. Their burgers are square so they can store them more efficiently. They were also the first fast food place to offer customized burgers, way before the others did, so if you only liked certain condiments, or preferred none at all, you could order your burger with only the stuff you like in it, instead of having to remove the standard condiments you didn’t like but other places made you take anyway—-and did it all while staying pretty close to the pricing of other fast food restaurants. However, the quality of their food has been in decline since Dave Thomas, the founder, retired (he died in 2002), and now it looks like the new and incredibly out of touch with reality CEO is going to finish flushing what used to be a good and profitable company completely down the toilet. If the company doesn’t boot that idiot soon, and/or no other company or individual comes along to save the company and restore it to its original quality and pricing, I predict Wendy’s will be shuttering every single North American (because you know damned well they’ll try the same s**t with our neighbors to the north), if not global, location sooner rather than later.
Load More Replies... I don't think we have to look up their recent increases in net profits, do we?
So don't go. Then they'll go out of business. Look, they can do this because people/sheep/idiots continue to buy their products. It's like football - Overpriced tickets, merchendise, food, times run by Sky (so travel is a nightmare) etc yet the fans STILL go and pay the clubs for tickets, shirts, burgers... See the problem? The seller isn't going to change their business model if they see a market...
I like wendy's but not that much. They're not the only place that sells burgers. I'll go to the others instead. I don't plan on going back to wendy's.
With the number of fast food chains closing stores where I live, it will be interesting to see if the 2 almost brand new Wendy's survive this nonsense. The Carl's Jr, KFC, and Burger King right off the freeway all closed in the last couple of years.
Wendy's used to be affordable. I went to my local location a few days ago. $10 for a Baconator (just the burger), $9 for a Dave's single. Combos varied between $16 and $19. Even the "$5 Biggie bag"....was $7. The guy in front of me ordered a spicy chicken sandwich and a small fries (no drink)...his total was over $17. I ended up buying nothing.
I liked their spicy chicken sandwich. They changed it within the past year to be thinner and greasier. I'll pass on going back.
This is too bad. Wendy's is my fave fast food but I can live without eating there ever again.
First time I come in and see to he surge price I will assume that they just raised there normal price and start going someplace cheaper. On the other hand there burger have gone down hill so I stopped eating at Wendy's.
They ruined their food years ago when they changed up everything - thick tasteless buns, horrible salt-sticks masquerading as fries, and pickles thicker than a pencil.
That is price gouging and it's illegal, not "efficiency". What they are doing is the same as raising prices during a natural disaster, taking advantage of people who have no other options. Expect lawsuits and boycotts.
It might be illegal on paper, but corporations have been pulling this s**t en masse since 2020, and have been getting away with it. So sick and tired of corporations not being held accountable for breaking laws, but holding out their hand for a bailout at the first opportunity.
Load More Replies... I’m not going to threaten to boycott over this, but I can’t imagine going to a place that does this.
That’s incidental boycotting, based on pricing rather than for a social or political cause.
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