Wendy's Sets the Record Straight on Dynamic Pricing Plans
Submitted by MAGA
Posted 64 days ago
WASHINGTON — After receiving backlash this week over its proposed "dynamic pricing" strategy, Wendy's is currently in the process of clarifying that it does not intend to raise prices during peak times and will not be implementing surge pricing.
During an investor call on Feb. 15, Kirk Tanner, the president and CEO of the fast-food chain, announced their plans to experiment with a fluctuating pricing model, which he referred to as "dynamic pricing," to adjust prices and menu offerings on the go at different restaurants.
Upon inquiry on Tuesday morning regarding the "dynamic pricing" initiative, Wendy's confirmed that they would be testing dynamic pricing as early as next year, emphasizing that it would provide added "flexibility to alter the menu more readily and offer discounts and value deals to our customers."
An initial statement from Wendy's mentioned, "As soon as 2025, we intend to trial a range of features like AI-powered menu modifications and suggestive selling based on variables such as weather, which we believe will deliver substantial value and enhance the customer and staff experience."
Numerous media reports throughout Monday and Tuesday compared Wendy's plans to surge pricing models seen in ride-hailing apps like Uber and Lyft, where prices are increased during periods of high demand.
The term "dynamic pricing" is commonly understood as "the rapid increase or decrease in prices influenced by demand," according to the Associated Press. "At establishments that utilize this pricing approach, prices may hike up to visit on a Saturday, when most customers are purchasing tickets."
Following the release of the initial statement, Wendy's clarified late Tuesday night that the dynamic pricing trial is not intended to raise prices but rather to provide discounts exclusively.
A spokesperson for the fast-food chain stated, "Wendy’s will not be implementing surge pricing, which is the practice of increasing prices during peak demand. We did not use that terminology, nor do we intend to adopt that policy."
"There was some misinterpretation in certain media reports regarding an intention to raise prices during high-demand periods at our restaurants," the statement reiterated. "We have no intention of doing so and will not raise prices during peak customer visitation times. Any features we might trial in the future will be designed to benefit our customers and restaurant staff."
Wendy's outlined its strategy to leverage digital menu boards to provide discounts and special promotions to customers during slower periods of the day when fewer patrons are dining at their establishments.
"Digital menu boards may enable us to modify the menu offerings at various times of the day and offer discounts and value deals to our customers more seamlessly, especially during quieter time slots," Wendy's elaborated in its subsequent statement.
As the news spread, Wendy's started trending on social media platforms, with over 860,000 posts about Wendy's circulating on X, previously known as Twitter. Users expressed concern over how the perceived policy change could influence fast-food prices.
During the initial investor call on Feb. 15, Tanner shared that the company intended to invest approximately $20 million over the next two years to introduce digital menu boards that will enable restaurants to adjust prices rapidly.
Tanner also disclosed that Wendy's was employing its proprietary internal AI model called "Frosty" in several restaurants. While the specifics of the AI's functions were not disclosed, he informed investors that the company was observing "continuous improvement in speed and accuracy" at those locations.
Source: 9news.com
During an investor call on Feb. 15, Kirk Tanner, the president and CEO of the fast-food chain, announced their plans to experiment with a fluctuating pricing model, which he referred to as "dynamic pricing," to adjust prices and menu offerings on the go at different restaurants.
Upon inquiry on Tuesday morning regarding the "dynamic pricing" initiative, Wendy's confirmed that they would be testing dynamic pricing as early as next year, emphasizing that it would provide added "flexibility to alter the menu more readily and offer discounts and value deals to our customers."
An initial statement from Wendy's mentioned, "As soon as 2025, we intend to trial a range of features like AI-powered menu modifications and suggestive selling based on variables such as weather, which we believe will deliver substantial value and enhance the customer and staff experience."
Numerous media reports throughout Monday and Tuesday compared Wendy's plans to surge pricing models seen in ride-hailing apps like Uber and Lyft, where prices are increased during periods of high demand.
The term "dynamic pricing" is commonly understood as "the rapid increase or decrease in prices influenced by demand," according to the Associated Press. "At establishments that utilize this pricing approach, prices may hike up to visit on a Saturday, when most customers are purchasing tickets."
Following the release of the initial statement, Wendy's clarified late Tuesday night that the dynamic pricing trial is not intended to raise prices but rather to provide discounts exclusively.
A spokesperson for the fast-food chain stated, "Wendy’s will not be implementing surge pricing, which is the practice of increasing prices during peak demand. We did not use that terminology, nor do we intend to adopt that policy."
"There was some misinterpretation in certain media reports regarding an intention to raise prices during high-demand periods at our restaurants," the statement reiterated. "We have no intention of doing so and will not raise prices during peak customer visitation times. Any features we might trial in the future will be designed to benefit our customers and restaurant staff."
Wendy's outlined its strategy to leverage digital menu boards to provide discounts and special promotions to customers during slower periods of the day when fewer patrons are dining at their establishments.
"Digital menu boards may enable us to modify the menu offerings at various times of the day and offer discounts and value deals to our customers more seamlessly, especially during quieter time slots," Wendy's elaborated in its subsequent statement.
As the news spread, Wendy's started trending on social media platforms, with over 860,000 posts about Wendy's circulating on X, previously known as Twitter. Users expressed concern over how the perceived policy change could influence fast-food prices.
During the initial investor call on Feb. 15, Tanner shared that the company intended to invest approximately $20 million over the next two years to introduce digital menu boards that will enable restaurants to adjust prices rapidly.
Tanner also disclosed that Wendy's was employing its proprietary internal AI model called "Frosty" in several restaurants. While the specifics of the AI's functions were not disclosed, he informed investors that the company was observing "continuous improvement in speed and accuracy" at those locations.
Source: 9news.com
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