Fast-food giant Wendy's has been garnering attention after their big talk of new pricing strategies caught the ears of burger lovers nationwide. However, it seems now the chain is clarifying that their forthcoming "dynamic pricing" won't be hitting customers with higher prices during peak munch hours. According to NPR, Wendy's Vice President Heidi Schauer confirmed that the method, which many feared would mirror surge pricing akin to Uber, isn't going to hike up your bill during the lunchtime rush.
Instead, what Wendy's appears to be cooking up is a play to boost sales during the less busy parts of the day. A $20 million investment into AI-powered digital menu boards at their company-operated restaurants would help to easily suggest new menu offerings and offer discounts during these downtimes, CEO Kirk Tanner pointed out in the infamous February 15th earnings call. The investment aims to not only change what's displayed but also to truly leverage technology in ways to better serve customers - and probably to try to draw them in when they might otherwise not be thinking about a Wendy's meal.
Speaking with WXYZ, local Wendy's customers expressed a mix of skepticism and cautious optimism. "That don’t even sound right," said customer Caroyln Easterly. "I think it's more of a ripoff, too, that they benefiting and we still losing out." Meanwhile, Nicholas Toth noted the potential upside if prices are indeed lower sometimes, but admitted, "Usually, I get the same thing every time when I come here, so if it’s more one day than it is the other day, (then) I don’t know how I’ll feel about that honestly.”
Experts are chiming in too. Dartmouth's Tuck School of Business professor Rob Shumsky told NPR that while dynamic pricing can be a complex dance, it could lead to lower prices for customers at off-peak times. Still, the practice has historically rubbed customers the wrong way in several industries, fostering confusion and even driving them toward the competition. Shumsky warned, "If you can't depend on a price being at a certain level, you're going to hesitate to go back."
Amid the back-and-forth of what "dynamic pricing" may entail, Wendy's assures its patrons that the changes are rooted in giving customers more, for less, when they can. According to WDSU, the company stated, "Digital menuboards could allow us to change the menu offerings at different times of day and offer discounts and value offers to our customers more easily, particularly in the slower times of day,"
