Wendy’s said it wanted “clarity” on its plan to roll out a digital menu board that would allow the price of burgers and fries to change throughout the day, and insisted that Uber-style “surge pricing” was not part of the plan.
The burger giant’s CEO, Kirk Tanner, told analysts this month that a new digital menu board next year will allow the chain to use “dynamic pricing,” a model Uber uses to increase fares when demand spikes. He said that it would be possible to introduce the terms used by the government.
But after reports about Tanner’s comments sparked an uproar this week, Wendy’s spokeswoman Heidi Schauer asked the company to retract them in a statement to the Post on Wednesday.
“To be clear, Wendy’s does not implement surge pricing, which increases prices when demand is highest. We do not use such language and have no plans to introduce such a practice. No,” she said.
Schauer added: “We have no plans to do so, and we do not intend to increase prices during the times when our customers are most active.”
This comes as the chain said in a statement earlier this week: “Dynamic pricing allows Wendy’s to offer competitive and flexible pricing that motivates customers to come to our stores and provides them with the food they love at affordable prices.” This was in response to the incident.
Faced with pointed questions Monday about concerns that Wendy’s would raise the price of its burgers during peak lunch and dinner hours, the company declined to comment specifically.
The company responded, “We plan to test a number of features that we believe will improve the experience for our customers and crew.” “We have no additional information to share at this time.”
Reports that Wendy’s would introduce ever-changing prices before rolling back its so-called “dynamic pricing” model shocked the restaurant industry.
The newspaper revealed this week that dozens of stores across the country, including barbecue chain Tony Lomas and popular ice cream franchise Carvel, have already benefited from the soaring prices.
Wendy’s was also posted. News update A post on the company’s website on Tuesday made no mention of a pricing model, instead focusing on the company’s investment in digital menu boards.
Tanner told investors on a Feb. 5 conference call that the Ohio-based company will invest $20 million in high-tech menu boards that can update prices in real time without incurring additional overhead. .
“As we continue to demonstrate the benefits of this technology in the restaurants we operate, franchisee interest in digital menu boards will continue to grow, supporting system-wide sales and profit growth,” said Tanner, who took over as principal earlier this month. You should do it,” he said.
Rachel’s Kitchen, a casual eatery based in Las Vegas, has a Overall, the three stores earned an additional $64,000 in annual profits.
Source pricing mentioned in a blog post Restaurants “have the opportunity to mark up product prices by 10% to 20% during the lunch rush, so customers may pay $1 to $2 more for a $10 item.”
Still, restaurant analyst Mark Kalinowski told the newspaper that Wendy’s should be prepared for a backlash because many consumers “consider dynamic pricing a rip-off,” experts in the field warn. are doing.
“Planes aren’t going to fly, and guests are going to be very upset. You can’t surprise your guests by saying, ‘Today’s meal costs an extra 50 cents or a dollar,'” restaurant consultant Arlene Spiegel said. ”
Wendy’s is already the most expensive fast-food chain in the U.S. after inflation increased menu prices by 35% from 2022 to 2023, according to data from consumer transparency platform PriceListo.
