Wendy's will soon copy Uber's pricing strategy. This means the American fast-food giant's menu price will depend on the demand levels of consumers.
As of writing, fast-food consumers are used to paying for food with prices that are stable, meaning that if they order a burger today, then they would pay the same price if they purchase another one tomorrow.
However, this is about to change for Wendy's customers since the food company will soon implement surge-pricing as soon as 2025. Here are the latest details that consumers need to know.
Wendy's To Copy Uber's Pricing Strategy!
Wendy's CEO Kirk Tanner confirmed the pricing change during an earnings call earlier this February, saying that the plan will commence as early as 2025.
"Beginning as early as 2025, we will begin testing a variety of enhanced features on these digital menu boards like dynamic pricing," said a Wendy's spokesperson via Fox Business.
The official stated that Tanner confirmed that consumers will soon see different offerings in certain parts of the day. Aside from these, there would also be AI-enabled menu adjustments, as well as suggestive selling based on factors, such as demand, weather, etc.
"At Wendy's, we're focused on providing great tasting, fresh, high-quality food and doing it in a way that brings value to our customers," added the official.
The Wendy's spokesperson said that they are making a significant investment to accelerate their digital business.
"In addition to evolving our loyalty program, we are leveraging technology even more with the rollout of digital menu boards in some U.S. restaurants," added the fast-food company's official.
Pros & Cons of Wendy's New Pricing Strategy
The Guardian reported that if the new pricing strategy of Wendy's works, then it would greatly increase their sales and potentially improve their margins.
However, if the surge-pricing tactic doesn't work, many consumers will start moving to the fast-food giant's competitors, which can drastically decrease their sales.
George Washington University's Associate Professor Steven Suranovic warned that Wendy's "could shoot themselves in the foot" if they continue their new pricing strategy.
Steven added that if customers feel that Wendy's is gouging their money out, they would definitely not going to take the new pricing strategy lightly.
