The concept of “fixed price” could soon be a thing of the past. Wendy’s is attempting to use “surge pricing” to up-charge during peak hours, and discount during empty times.
The “surge” concept was pioneered by Uber. It mimics the concepts of supply and demand, hiking up pricing during busy times to encourage more drivers to get on the road. Fox Business says:
Wendy’s is expected to roll out a dynamic pricing model similar to Uber’s surge-pricing as soon as next year.
“Beginning as early as 2025, we will begin testing a variety of enhanced features on these digital menu boards like dynamic pricing, different offerings in certain parts of the day, AI-enabled menu changes and suggestive selling based on factors such as weather,” a spokesperson confirmed to Fox News Digital after Wendy’s CEO Kirk Tanner announced it on an earnings call earlier this month.
This model for changing prices throughout the day would be treating a fast food menu like the stock market. Fixed prices have major appeals: people being able to budget ahead of time, and consistency makes customers happy.USA Today says:
More fast-food joints, restaurant chains and brick-and-mortar retailers are taking advantage of technological advances to tap into real-time trends and swiftly adjust prices, sometimes in seconds.
It’s a tempting proposition for big businesses that can dramatically increase revenue with slight pricing changes.
Customers are already upset about price increases with inflation. Adding algorithms could make companies who use them more popular. However, offering discounts and lower prices could make those companies more popular.
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