Wendy’s, a fast food chain based in the United States, has announced plans to experiment with fluctuating menu prices based on demand, a move that has sparked criticism. The company’s CEO, Kirk Tanner, mentioned during a recent conference call that they will begin testing dynamic pricing, similar to surge pricing used by ride-sharing companies and ticket sellers, starting next year.
Tanner also mentioned that Wendy’s will invest in digital menu boards and AI technology to enhance the customer experience. However, the announcement of dynamic pricing has not been well-received, with backlash from customers and the media.
The decision to implement dynamic pricing has caused Wendy’s stock to dip slightly and has drawn criticism on social media platforms. Many users expressed their disapproval of the new pricing strategy, with some vowing not to patronize the chain anymore.
The company’s former CEO, Todd Penegor, had previously implemented a restructuring plan to accelerate decision-making and expand globally. Wendy’s, along with its franchisees, operates over 7,000 restaurants worldwide.
Despite the backlash, Wendy’s remains committed to implementing dynamic pricing and investing in digital menu enhancements. The company plans to roll out digital menu boards at all its US company-run restaurants by the end of 2025, investing around $20 million in the process. Additionally, they will invest another $10 million over the next two years to support digital menu enhancements globally.