Wendy's Will Test Uber-Style Surge Pricing & It's Getting A Frosty Reception Online
Same fast food, different prices.
Wendy's food.
If you’ve ever tried to book a last-minute flight, jump in an Uber during a rainstorm or land tickets to a Taylor Swift concert, you know all about surge pricing. And you probably hate it.
Well, too bad, because it sounds like Wendy’s wants to make surge pricing a thing in fast food, too.
The burger chain’s CEO recently said he plans to test surge pricing at Wendy’s locations in the United States, and while he hasn't specifically said when it might happen in Canada, he has set aside money for some international testing.
“Beginning as early as 2025, we will begin testing more enhanced features like dynamic pricing and daypart offerings, along with AI-enabled menu changes and suggestive selling,” Wendy's CEO Kirk Tanner said on a call, per Yahoo Finance. “As we continue to show the benefit of this technology in our company-operated restaurants, franchisee interest in digital menu boards should increase, further supporting sales and profit growth across the system.”
He explained that Wendy's will test digital menu boards that can be changed remotely under the dynamic pricing model. According to Tanner, they'll put US$20 million into the project in the United States and another $10 million into global testing over the following two years.
A Wendy's spokesperson also told CBS News that AI will suggest prices based on a variety of factors, including weather. Although Wendy's hasn't shared specific details, you could certainly imagine them charging more for a Frosty on a hot day.
Surge pricing is a thing for travel and concert tickets, but this would be a first in the fast food industry.
AMC Theaters tried to make surge pricing happen last year in the United States, but that plan collapsed after about half a year.
Internet users were quick to rip Wendy's for the idea on Tuesday, with many pointing out that unlike with airlines or Uber, one can easily just buy a burger from another store.
"Sorry, you're in fast food. You're not an amusement or theme park. I go for quick, cheap food on the run, if needed. I will not be paying for surge pricing," wrote one critic on X.
"I didn't even know this was a thing," added another. "What a horrible idea."
Exact dates for the test have not been announced.