Wendy's to add surge pricing to menu items.

Chuckanut

Chuckanut

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Taking a hint from airlines, power companies, ride-sharing companies, etc.

https://www.usatoday.com/story/mone...rge-pricing-dynamic-pricing-uber/72755552007/

Wendy's is planning to roll out a dynamic pricing model similar to ride-sharing companies as soon as next year, CEO Kirk Tanner said on an earnings call earlier this month. This means Wendy's prices would fluctuate based on time, location and demand.
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"As early as 2025, we plan to test a number of features such as AI-enabled menu changes and suggestive selling based on factors such as weather that we think will provide great value and an improved customer and crew experience," the statement concludes.
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What could possibly go wrong? :rolleyes:
 
Thinking about this, the only way I see it working is that they post their regular prices as "$XXX or less" and the surge pricing is implemented as a discount at the slow times. So their posted prices are peak lunch prices.
 
French Fries - Market Price


Maybe they won't even tell you until you've ordered your meal. If I have to ask I probably can't afford it.
 
I've already instructed my broker to buy hamburgers at 4 am and sell at noon.
 
So will the AI refuse to even offer you french fries based on your cholesterol level
or just jack the price to deter you from buying them?
Will there be a methane or carbon surcharge if you don't buy the unmeat burger?
 
USGrant1962 said:
Thinking about this, the only way I see it working is that they post their regular prices as "$XXX or less" and the surge pricing is implemented as a discount at the slow times. So their posted prices are peak lunch prices.
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Why post prices ?

Just have displays like McD that change constantly with the price for that moment , which I hate as I'm reading the display behind the counter and it changes on me :mad:

But with displays and website pages and kiosks , the displayed price can change at any time.

Like Amazon or Airlines.
 
This is a great thread. Many laughs - thanks. Looking forward to my discounted Frosty, just need to find out what time I'll be eating it.
 
Diners do something similar, with “early bird pricing for seniors”. They don’t increase the price during surge hours, however, they just cut the price a bit during hours when the employees are all working, the tables are empty, and the marginal cost of a meal is low.

If this really is surge pricing, where the price rises during peak hours, it’s not gonna work. Surge pricing only works when 2 conditions are met: all suppliers do it and consumers don’t have an easy alternative. Fast food is extremely competitive and there are outlets everywhere.
 
Uber does surge pricing and it works. But folks have a choice pay or walk and the distance is almost always too far to walk, so no choice.

But restaurants can't really have surge pricing, I think folks are just going to refuse to buy a $30 hamburger from Wendy's.
I'd eat a PB & Jam sandwich before I'd pay even $10 for a Wendy's hamburger.
 
Lots of meetings going on in the corporate world these days trying to scheme new ways to get more money from their "valued" customers.

It's kind of funny that years ago before Covid, some car dealers went to the "everyone pays the same price" model in an effort to attract customers that were sick of dickering. I guess CarMax and Carvana and some others still subscribe to that model.

Now you can't even count on the price of a hamburger being the same, different hours of the same day.
 
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Waiting for the finance plan to roll out when fast food gets a bit more expensive.

I will gladly pay you 110% Tuesday for a hamburger today
 
Fermion said:
Waiting for the finance plan to roll out when fast food gets a bit more expensive.

I will gladly pay you 110% Tuesday for a hamburger today
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Reminding a little of the stories I heard as a boy about the price of a loaf of bread in Germany in the 1920's. Prices rose so fast the guy at the back of the line paid twice as much as the guy at the front of the line had.
 
Given the dearth of customers I see at our Wendy’s as I drive by, I doubt our Wendy’s will be raising prices. But I’ll never know.
 
Chuckanut said:
"As early as 2025, we plan to test a number of features such as AI-enabled menu changes and suggestive selling based on factors such as weather that we think will provide great value and an improved customer and crew experience," the statement concludes.
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What garbage. What a great way to annoy your customers.
 
USGrant1962 said:
Thinking about this, the only way I see it working is that they post their regular prices as "$XXX or less" and the surge pricing is implemented as a discount at the slow times. So their posted prices are peak lunch prices.
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No. The prices will be electronically displayed and automatically changed on a schedule. Cash register prices will be changed at the same time. Odds are the customers will only be told something like: "Discount prices in effect 9:30-11AM, 1:30-4PM." And regular prices will be raised of course.
 
I doubt I'll be going. I haven't been to Wendy's since I went through the drive-thru for the 50 cent Frosties a few years back.

Scored a good deal on a Whopper and ice cream for $1 at Burger King yesterday, though, using the BK app.
 
pb4uski said:
I can just see it now, someone standing in line and has decided what they want and the prices change before they get to the register to order their meal.
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Or even more fun... after parking in the drive-through line, folks finally see the pricing board and bail on their desire to order. The logistics of exiting the line at that point are going to be interesting :popcorn:
 
Sunset said:
But restaurants can't really have surge pricing, I think folks are just going to refuse to buy a $30 hamburger from Wendy's.
I'd eat a PB & Jam sandwich before I'd pay even $10 for a Wendy's hamburger.
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If they charge $30 for a burger or even $10 they will be out of business in a year, probably less.

I am curious if they will try fixed time of day prices such as adding 10% for burger bought from 11:30 to 2:00 PM. If they change prices on the fly simply because today is busier than usual, I think that will drive away many customers. The last thing people want is to play guessing games over the price of a burger. I'd rather break out the PB&J fixings.


There's a lot in this idea that could backfire badly. I can't fly myself to Denver if the airfare goes up $50. But, I can make my own burger at home. I hope they do a good job testing it.
 
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Chuckanut said:
There's a lot in this idea that could backfire badly. I can't fly myself to Denver if the airfare goes up $50. But, I can make my own burger at home. I hope they do a good job testing it.
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There's a McD, BK, or other fast-food place right next to the Wendy's that folks can just as easily pull into. Even better, Shake Shack, Chipotle and others are now building locations with drive-thru.

I think that's what most folks will do - just pass Wendy's and go someplace else. I really can't see how they envision this will generate more sales. It's an experiment, and one that I think will end just as quickly as they put it in place. When they see the terrible press it gets and social media ripping it apart they may have second thoughts and can it before it even see the light of day. It will be interesting to see how it progresses.
 
I’ll probably surge right on past Wendy’s during prime time pricing. Actually I can’t remember the last time I dined there.
 
I don’t see how they can make this work, but since I don’t buy food at fast food restaurants I won’t see the outcome.
 
"That's two singles, fries and a frosty ordered during our premium "convenience" noon hour. Would you like to pay for that all now or as three easy payments?":LOL:
 
This sounds like an idea that originated from the very top, no one has the fortitude to call it out as for what it is.
 
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