Wendy’s To Introduce Uber-Like Price Surging For The First Time Ever
For the first time ever, a fast food restaurant will test the use of dynamic pricing and customers are less than pleased with the new business tactic.
Earlier this month, Wendy's announced an updated financial strategy that will utilize Uber's well-known price surging practices.
The prices listed on the menu can fluctuate based on the time of day, current demand, location, or even the length of the drive-thru line.
The surges — currently an inconvenience for Uber and Lyft ride share customers everywhere — was reportedly presented by the CEO of Wendy's, Kirk Tanner, during a company earnings call.
"Beginning as early as 2025, we will begin testing more enhanced features like dynamic pricing," he stated.
According to The Guardian, the cult-favorite food chain would invest $20 million in digital menu boards, which would allow pricing to change automatically according to the algorithm.
As per the timeline, "roll out digital menu boards to all US company-operated restaurants by the end of 2025," spending "approximately $10m over the next two years to support digital menu board enhancements for the global system."
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Tanner, 52, who was PepsiCo's Chief Executive Officer for over 30 years, became the new chief executive of Wendy's as of Feb. 5 amid attempts to increase share prices and ease pressure from activist investors.
The "old-fashioned" burger hub cites a slowdown in low-income customer spending resulting in shares falling 14% over the past year, tanking the market cap down to $3.97 billion.
"We expect our digital menu boards will drive immediate benefits to order accuracy, improve crew experience and sales growth from upselling and consistent merchandising execution," Tanner said during the meeting.
Wendy's hasn't released any details regarding the exact date of the rollout or how much prices will increase.
