Wendy's menu prices are subject to change depending on season, location, demand, etc.
In mid-February, Kirk Tanner, Wendy's new CEO and president, shared with analysts that he was rolling out new plans to improve the company's bottom line, including digital menu boards that would make it easier to change product prices. did. Dynamic pricing and day-part offers are also being tested, according to Nation's Restaurant News.
“We will invest approximately $20 million to deploy digital menu boards to all company-operated restaurants in the U.S. by the end of 2025 and over the next two years to support the enhancement of digital menu boards in our global system,” Tanner said. We will invest approximately $10 million.”
Digital boards aim to improve order accuracy and increase sales by upselling certain menu items.
By 2025, the fast-food restaurant chain plans to begin testing dynamic pricing, a time-based pricing strategy used by companies to increase or decrease the price of a service or product depending on time or demand.
Initially, the media (including TODAY.com) compared the concept to the Uber app's “surge pricing,” which occurs when fares go up due to a driver shortage, but Wendy's said in a 2018 statement that the company called it “dynamic pricing.” We have made it clear how we plan to use it. February 27th.
“To be clear, Wendy's does not practice surge pricing, the practice of raising prices when demand is highest. We have not used that language and have no plans to implement that practice. '' a spokesperson said in an email to NBC News. . He added that there were “no plans” to raise prices during periods of high demand.
“We said these (digital) menu boards give us more flexibility in changing the display of featured items. “We have no plans to do so. We do not raise prices during times when our customers are most likely to visit our stores,” the Feb. 26 statement said. “Any features we may test in the future will be designed to benefit customers and restaurant staff. Digital menu boards allow you to change the menu you offer depending on the time of day, It makes it easier to offer discounts and valuable perks during slower times of the day. ”
A Wendy's spokesperson initially confirmed the digital menu and dynamic pricing in a Feb. 26 statement to TODAY.com, saying that in the future, the restaurant could change prices depending on the time of day. Initial statements did not say that the fast food chain would only lower prices with a new “dynamic pricing” model.
“As we have previously shared, we are making significant investments to accelerate our digital business. In addition to evolving our loyalty program, we are also leveraging technology, including the introduction of digital menu boards in some of our U.S. restaurants. ,” the statement reads. “Starting as early as 2025, we will be introducing various enhancements to digital menu boards, including dynamic pricing, different offers at specific times of the day, AI-enabled menu changes, and suggested sales based on factors such as weather. We are planning to start testing.”
The statement goes on to say, “Dynamic pricing gives Wendy's competitive pricing and pricing flexibility that motivates customers to come to our stores and allows us to offer the food they love at prices they love. We are committed to customer satisfaction. “We plan to test a number of features that we believe will improve performance.” and crew experience. ”
In a meeting with analysts, Tanner said Wendy's Fresh AI has already been implemented in many restaurants and is “continually improving in speed and accuracy.”
Digital menus help reflect changing prices throughout the day. Tanner said the new development “plays an important role in our restaurant teams, ensuring our staff prepares fresh, high-quality Wendy's favorites and builds customer relationships that keep them coming back.” “This will allow us to focus on what is important,” he said.
Fast forward to 2023, and NBC's Sam Block told TODAY that dynamic pricing is creeping into restaurants, movie theaters, bowling alleys, and more.
“Experts say more companies are tracking consumers' spending habits to decide when and what to charge more for,” Block said, adding that dynamic pricing He added that he checks online for promo codes, discounts, loyalty programs, etc. to avoid getting set up.
The CEO also told analysts that the company would invest more money into promoting its new breakfast menu. He recently partnered with Cinnabon to develop a new breakfast menu and added two of his breakfast menu items: an English muffin sandwich and a breakfast burrito.
The company is also testing “saucy nuggets” in flavors such as honey barbecue, buffalo, garlic parmesan and ghost pepper at a handful of restaurants in Ohio, according to Nation Restaurant News.
Editor's note (February 27, 2024 8:30 PM PT): This article has been updated with a clarification from Wendy's that “dynamic pricing” does not include price increases during busy periods.
