Wendy's announces Uber-like surge pricing model

A second major burger chain said it is investing in high-tech menu boards.

Wendy's Announced the release of new menu prices, which will vary depending on the time of day.

The country's second-largest burger chain, with 6,000 restaurant locations, said the transition would begin next year.

For example, customers may pay $1 more for a sandwich like the Packanator during the lunch rush.

“Historically, companies have set a fixed price over time. Pricing mechanisms allow companies to change prices throughout the day or perhaps even an hour,” said Zach Brown, a professor of economics at the University of Michigan. “Good Morning America.”

Wendy's CEO Kirk Tanner said the company will spend $20 million on high-tech digital menu boards. Surge pricing Strategies adopted by rideshare companies like Uber and Lyft, airlines and hotels.

“At busy times, they can obviously increase profits,” Brown said. “Furthermore, some consumers may prefer to shift to less busy times when demand is lower and prices are lower.”

Wendy's is already getting a frosty reaction to a user's price change announcement on X, formerly known as Twitter. to write“Surge pricing is price gouging by any other name.”

In a statement to ABC News, Wendy's said its dynamic menu pricing “can be competitive and flexible with pricing, encouraging customers to visit and offering the food they want at a great value. We will be testing a number of features that we think will provide an improved customer and employee experience.”

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Some experts say customers may see more menu price changes at other fast-food chains, including McDonald's and Burger King, especially if Wendy's sees a boost to its bottom line after implementing dynamic pricing.

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