Wendy's on Tuesday appeared to backtrack on CEO Kirk Tanner's comments that sparked widespread coverage and backlash over the idea that the company would introduce surge pricing on burgers and fries.
“As early as 2025, we plan to begin testing enhanced features such as AI-powered menu changes and suggested sales, as well as dynamic pricing and time slots.” Mr. Tanner said this during the company's fourth quarter earnings announcement.
Dynamic pricing, commonly referred to as surge pricing, means that prices fluctuate depending on whether demand goes up or down.
Similar to the Uber and Lyft models, people expected Wendy's menu items to be priced differently during peak and off-peak hours of the day.
The new pricing model was discussed as part of a $20 million investment to install digital menu boards in all U.S. restaurants by 2025. Tanner also said on the conference call that the company plans to invest an additional $10 million over the next two years to upgrade its digital menu. Menu boards around the world.
Following the CEO's comments, Business Insider reached out to Wendy's via email to ask for more details, including how much the new model will cost. BI's email referred to this as “surge pricing.”
Wendy's responded with a statement about the content of the digital menu board, but did not dispute the “surge pricing” feature.
As word of the new changes spread on Tuesday, people took to social media to call out: complain Post a meme about the possibility of further price increases.
After an online uproar about the new pricing model, Wendy's spokeswoman Heidi Schauer said Tuesday night that “Wendy's does not implement surge pricing, which increases prices when demand is highest.” sent the latest information.
Ann announcement The company's website reiterated that digital menu boards allow stores to more easily change featured items and offer discounts to customers.
According to the statement, Tanner was referring to dynamic pricing. “Some media reports have misinterpreted the intention to raise prices at a time when demand in restaurants is at its highest.”
Wendy's said the digital menu board provides discounts and valuable offers to customers “especially later in the day.” The post also states that any new features will only benefit customers.
So once this policy goes into effect, you might walk by an empty Wendy's store and see a discount being offered.
This change marks one of several changes made by the company. Become more tech savvy.
Wendy's said it is spending $15 million this year to improve its mobile app and loyalty program. The company expects global digital sales to reach $2 billion by 2024, a year earlier than planned, Tanner said.
Wendy's also plans to continue expanding its stores. Drive-thru using AIwas released in June. By 2025, the company plans to introduce AI-powered menu changes and suggested sales based on factors such as weather, according to a statement provided to BI.
February 28, 2024: This article was updated after Wendy's issued a statement saying it would no longer start raising prices on some menu items.
