Wendy’s to test dynamic pricing as part of investment in digital menu boards |

Wendy’s, the popular fast-food chain that currently has more than 6,500 restaurants in the United States and 29 countries and territories around the world, plans to introduce dynamic pricing to its menu, a practice similar to Uber’s surge pricing. The company announced in its recent earnings call that it will begin testing this pricing model in 2025. The move is part of a $20 million investment in new digital menu boards across all U.S. stores, allowing the company to adjust prices to meet demand.

Wendy’s CEO Kirk Tanner said the new menu will allow the company to experiment with dynamic pricing and daytime offerings. The menu also facilitates AI-powered changes and suggested sales. Tanner expects these digital boards to improve order accuracy, improve the crew experience, and drive sales growth through upsells and consistent merchandising execution. Masu.

The concept of dynamic pricing is not new, with companies like Ticketmaster and Uber already using sophisticated algorithms to adjust prices based on demand. Movie theater chains like AMC, Regal, and Cinemark have also recently started implementing surge fees. However, its use in the restaurant industry was limited because it took time and effort to change the menu. However, digital menus and apps make it easy to update prices, making it easy for fast food chains to implement dynamic pricing.

Wendy’s isn’t the only fast food chain considering dynamic pricing. McDonald’s also experimented with this pricing model and new order suggestion features in some of its upgraded drive-thru locations and in its app. However, inconsistent pricing at franchise locations has sparked controversy over the affordability of its food.

High pricing could be a turning point for the restaurant industry. If Wendy’s model is successful, other chains could follow suit. However, surge pricing also comes with the potential for backlash from consumers if prices are perceived to have increased during busy periods.

Wendy’s has a history of innovation. For example, last August, the company announced the opening of its first global next-generation restaurant and completed the design of a new high-capacity kitchen in response to high customer demand. These digital-first designs are intended to improve the experience for customers, staff and franchisees, and accelerate growth across Wendy’s global restaurant footprint.

The first Wendy’s Global Next Generation restaurants with modern design, optimized layouts and next-generation technology have opened in Kansas and Oklahoma, with more than 200 more planned to open this year. The new design includes a double-sided kitchen layout and increased equipment capacity for increased order processing capacity.

Abigail Pringle, Wendy’s president, international and chief development officer, said the global next-generation design will increase digital order processing capacity by 400 times and accelerate the company’s digital growth. The fact that he successfully opened these restaurants within a year of unveiling the design demonstrates Wendy’s commitment to digital expansion.