(DailyDig.com) – The fast-food chain Wendy’s is planning to implement a new pricing model, known as surge pricing, by next year. According to Kirk Tanner, Wendy’s CEO, their dynamic pricing model will feature prices that change according to demand, weather, location, and time of day.
Tanner stated that they plan to start by testing several features to increase profits and add value to their customers’ experiences. They will invest in menu boards that can be digitally updated in real time as conditions change. AI will run the board as price conditions change.
According to Wendy’s spokesperson, they will continue to provide high-quality, fresh, and great-tasting food. They are evolving their technology to keep up with their business and bring their customers the value they expect. This change will allow them to be flexible and competitive, which will allow their customers to purchase their food at a value that is beneficial to them.
The spokesperson stated that they will begin testing in limited locations. The testing will be regarding various features they expect to provide for Wendy’s crew and customers to have an enhanced experience.
The CEO of oXYGen, a wealth management agency, Ted Jenkin, stated that worries about rising prices of goods and services will impact this attempt to change prices depending on certain variables, such as time of day, which is not something Wendy’s customers are going to embrace. He said that customers may have to change their lunch hours just to be able to afford to eat.
Another criticism from a professor of economics, Steven Suranovic, came as he stated that Wendy’s could fail by using changing pricing, which would appear to their customers as taking their hard-earned money to enrich the company’s bottom line. When the customers feel that they are victims of price-gouging, they will not return.
According to industry experts, people are currently suffering from inflation. They would rather eat at home than risk paying higher prices for fast food.
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