Wendy’s is gearing up to change its business model in the coming year.
Yesterday, it was announced that the fast food chain plans to introduce an Uber-style dynamic pricing system. The new surge-pricing model means the cost of menu items will fluctuate throughout the day based on demand. Simply put, your beloved Frosty and Jr. Bacon Cheese Burger could cost a lot more money during lunchtime than it would later or earlier in the day.
The model is expected to affect lunch and dinner hours, the times when Wendys is the most busy.
According to The New York Post, Wendy’s CEO Kirk Tanner announced the new system on a call with investors, noting the Ohio-based company will invest $20 million on high-tech menu boards that will be able to update prices in real-time without incurring additional overhead costs.
“As we continue to show the benefit of this technology in our company-operated restaurants, franchisee interest in digital menu boards should increase further, supporting sales and profit growth across the system,” said Tanner, who rose to the chief role earlier this month.
As of right now, there is no cap on just how high prices may rise nor whether or not the base prices would drop during slower hours.
In a quote to The Post, a Wendy’s spokesperson stated that dynamic pricing can allow the chain to be competitive and flexible with pricing, hoping it’ll motivate customers to visit and indulge in the food they love at a “great value.”
“We will test a number of features that we think will provide an enhanced customer and crew experience.”
Currently, Wendy’s is the most expensive fast-food chain in the US after menu costs rose 35% due to inflation between 2022 and 2023, according to data from consumer transparency platform PriceListo. Wendy’s is already known to have fluctuating prices depending on location.
For example, a Dave’s Single burger costs $5.99 in Newark, NJ, while that same quarter-pound burger costs $8.19 at a Wendy’s in Times Square.
In recent years, Wendy’s loyalists have noticed and complained about the disappearance of the once reliable 4 for $4 meal and the sudden rise of the $6 Biggie Bag, which is quite literally the same thing: a drink, burger, fries, and nuggets.
Luckily, New York City is loaded with some of the best burger spots where prices are pretty consistent!
In other news… New York City’s Most Desirable Burger Is Only $2.55