WENDY’S ARE NOT GOING TO ‘SURGE PRICING’
DALLAS, Feb 28 (Reuters) – Wendy’s said on Wednesday it has no plans to raise menu prices at times of peak demand, after the burger chain was scorched on social media sites for comments its CEO made earlier this month suggesting the chain may start testing “dynamic pricing.”
CEO Kirk Tanner told investors on a call this month that starting as early as 2025, Wendy’s would begin testing features including “dynamic pricing and daypart offerings”.
Dynamic pricing refers to surge pricing based on demand, especially during peak hours of the day. Many people
associate it with shifting airline ticket prices or how ride-hailing service Uber adjusts fares at busy times.
associate it with shifting airline ticket prices or how ride-hailing service Uber adjusts fares at busy times.Tanner’s comment sparked an online backlash this week, with some vowing to stack their freezer with the company’s signature “Frosty” milkshakes to hoard for summer months. U.S. Senator Elizabeth Warren, in a post on the social media platform X on Wednesday, called it “price gouging plain and simple.”
Wendy’s backtracked, saying in a statement to Reuters on Wednesday that it “would not raise prices when our customers are visiting us most.”
Its initiative to add digital menuboards to certain stores would allow Wendy’s to offer discounts to customers more easily, “particularly in the slower times of day,” the company said.
Wendy’s also claimed the menuboards would provide more flexibility to change the display of featured items, saying the comments were “misconstrued” in media reports to raise prices during periods of high demand. “We have no plans to do that,” the company said.
