Wendy’s is preparing to test an “Uber-style” surge pricing model in which prices fluctuate throughout the day based on demand. That means Dave’s burgers cost more during the lunch rush.
Wendy’s CEO Kirk Tanner, who took over as chief executive earlier this month, announced the new system on a conference call with investors and said testing of price menus would begin in 2025. . daily mail Previously reported.
Through a dynamic pricing model, the chain’s iconic Dave’s Singles can increase in price by up to $1 during lunchtime and drop by the same amount after the lunch rush.
Tanner said Wendy’s will rely on “digital menu boards” because of constant price fluctuations.
After spending an initial $20 million on the high-tech menu, the Ohio-based company will be able to update prices in real time without incurring additional overhead, Tanner said.
Wendy’s Quarter Pound Cheeseburger prices already vary by location.
For reference, the popular item at the fast-food chain’s Newark, New Jersey location costs $5.99, while a Dave’s single costs $8.19 at its Times Square outpost.
With the dynamic pricing model, New Yorkers can expect to pay nearly $10 for a lunchtime cheeseburger (not including drinks or fries).
Data from the Consumer Transparency Platform price list Wendy’s has already been determined to be the most expensive fast food chain in the U.S. after inflation caused menu costs to rise 35% from 2022 to 2023.
It’s unclear at this point whether Wendy’s prices will change by more than $1 next year.
Representatives for Wendy’s, which has more than 6,000 stores nationwide, did not immediately respond to The Post’s request for comment.
Imminent new pricing model is risky given software company investigation Captera A report in the Daily Mail found that 52% of consumers believe dynamic pricing in restaurants is price gouging.
Such price changes, also known as surge pricing, were implemented several years ago not only by airlines but also by popular ride-sharing apps such as Uber and Lyft.
The concept of ride-sharing companies is to adjust prices on the fly, such as when it rains.
During a rush-hour storm in New York City in September, commuters were outraged that “slimeball” Uber and Lyft companies were charging nearly $100 for a five-mile ride.
Uber and Lyft both said at the time that they were capping ride prices in anticipation of the storm, but neither company would confirm what kind of caps were in place.
Even the CEO of Uber Inc. A journalist took an Uber ride from downtown Manhattan on the West Side to interview Uber boss Dara Khosrowshahi for $51.69 including driver tip for the 4.95-mile trip. After paying, I was in a terrible shock.
Wired Editor-in-Chief Stephen Levy asked Khosrowshahi during a summer roundtable to guess the price of his drup.
Khosrowshahi estimated it was only $20.
Levy told the rideshare manager how far he was and told him that “five minutes ago the fare was $20 more expensive,” which Khosrowshahi blamed on “spike prices.” He said he thought about it.
