Wendy’s has clarified recent statements made by its CEO regarding the implementation of a “dynamic pricing” system, reassuring customers that prices will not increase during peak times.
During a call with analysts in mid-February, Kirk Tanner, Wendy’s new CEO and president, outlined the company’s plans to enhance profitability, which includes the introduction of digital menu boards capable of adjusting prices more efficiently. Additionally, Wendy’s will be testing dynamic pricing and daypart offers, as reported by Nation’s Restaurant News.
Tanner emphasized that Wendy’s will invest approximately $20 million to deploy digital menu boards across all U.S. company-operated restaurants by the end of 2025. An additional $10 million will be allocated over the next two years to enhance digital menu board features for the global system.
The primary goal of the digital boards is to enhance order accuracy and boost sales by promoting certain menu items. Starting in 2025, Wendy’s will begin experimenting with dynamic pricing, a strategy where prices fluctuate based on time and demand, akin to surge pricing on ride-sharing apps.
However, Wendy’s has clarified that their dynamic pricing model differs from surge pricing. In a statement released on Feb. 27, a spokesperson explained that Wendy’s does not intend to implement surge pricing and has no plans to raise prices during high-demand periods.
The company aims to utilize digital menu boards to offer more flexibility in displaying featured items. Wendy’s intends to leverage this technology to introduce discounts and value offers during slower times of the day, benefiting both customers and restaurant staff.
While Wendy’s initially confirmed the introduction of digital menus and dynamic pricing in a statement to TODAY.com on Feb. 26, the company clarified that dynamic pricing will not only involve lowering prices but also adapting prices based on various factors, including time of day.
Wendy’s emphasized that dynamic pricing will enable the company to remain competitive and flexible with pricing, motivating customers to visit while providing them with great value. The company plans to test various features aimed at enhancing the customer and staff experience.
During the analyst meeting, Tanner highlighted the successful rollout of “Wendy’s Fresh AI” in many restaurants, which has led to improvements in speed and accuracy.
The introduction of digital menus will enable Wendy’s to reflect fluctuating prices throughout the day, allowing staff to focus on delivering high-quality food and building customer relationships.
Wendy’s also plans to invest in advertising its new breakfast menu offerings, including collaborations with Cinnabon for new breakfast items and the introduction of English muffin sandwiches and a breakfast burrito.
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Additionally, Wendy’s is testing “saucy nuggets” with flavors like honey-barbecue, Buffalo, garlic-Parmesan, and ghost pepper in select restaurants in Ohio.
Dynamic pricing is becoming more prevalent across various industries, with businesses using consumer spending habits to determine pricing strategies. To navigate dynamic pricing, consumers can check online for promo codes, discounts, loyalty programs, and other offers.
Wendy’s commitment to implementing dynamic pricing while prioritizing customer satisfaction underscores its dedication to enhancing the overall dining experience for its patrons.