Wendy's to add surge pricing to menu items.

[Aerides]

I skimmed the article, but it wasn't clear how a customer would know the price was (much?) higher than when they were ready to order. - IE, drive there, at the counter/drive thru? That's too late.

via the App? Put me out of my misery, please, before I feel the need to download a fast food app...

 

[Midpack]

Certainly sounds annoying, but consumers have accepted surge pricing for decades on some products/services. Gasoline prices are the best example, with not only seasonal but micro adjustments like weekends/holidays. Airline tickets, sports/concert tickets, hotel prices, car prices, private tolls, many retail/grocery stores change prices weekly and more recently ride sharing and food delivery.

If it hurts business, you can be sure Wendy's won't roll it out across the board. While the average price will presumably go up, we may find that there are discounts at low periods that you can't get today. Might allow them to level demand during the day and reduce labor costs by avoiding peaks. I don't blame them for trying in test markets.

 

[GrayHare]

It's an interesting experiment but much of the public has no understanding of supply and demand. Still, it might work because many plastic users won't even realize the total is different this time: their payment effort remains the same single swipe or tap. Meanwhile, FIRE types will be able to buy at off hours and save money.

 

[athena53]

As mentioned earlier, this isn't that different from "early bird rates" meant to get people into the restaurant at off-peak hours, or a separate, lower-priced lunch menu (although the latter may also have smaller portions). They just didn't market it very well.

I don't do much fast food except Subway and I do see more deals being sent to me by e-mail that apply only if you order ahead on-line and pick up in store. I suppose it's a more efficient way to use the people they have behind the counter.

 

[Jerry1]

Thankfully, I can’t remember the last time I went to a fast food restaurant. From what I hear from my daughter (with kids), they’ve already priced theirselves out of the market. There’s no way I’d pay that much for a burger, or whatever, when I can go to a local bar and get a good burger for not much more. And, I can always cook one better at home for far less.

The bottom line though is that my system just can’t tolerate that type of food anymore. Too salty, too much nasty oil, practically no fruit and/or vegetables. Sorry, those days of eating that are gone.

 

[Chuckanut]

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’m thinking only ChickFilA and In and Out Burger could pull this off. Maybe.

 

[GrayHare]

Now a burger competitor can have a CGI Clara Peller visit one of the "surge" Wendy's and demand, "What's the price?!"

 

[razztazz]

Do they still make brown paper bags? If this gets any traction and starts to spread they might be a reasonable investment as more people brown bag it.
Actually I don't have that much faith in people.

 

[GalaxyBoy]

Haven't eaten at Wendy's since they quit busing your table.

 

[winger]

Will employees get surge wages?

 

[sengsational]

What garbage. What a great way to annoy your customers.

This.

As mentioned earlier, this isn't that different from "early bird rates" meant to get people into the restaurant at off-peak hours, or a separate, lower-priced lunch menu (although the latter may also have smaller portions). They just didn't market it very well.

Although it might have a similar effect to early bird rates I don't think the two are very similar. Early bird is an advertised lower price, whereas surge pricing is likely to be a well-disguised penalty for eating at busy times. The idea that yet another industry might abuse customers with this kind of pricing policy makes me want to just say no; they do this, I'm out.

 

[jollystomper]

There is a startup company, Sauce Pricing, that provides the technology to allow restaurants to implement "dynamic pricing". Their website: https://www.saucepricing.com/

They list the customers that employ their technology, identify several use cases for that their technology can implement (e.g. unique prices for lunches, dinners, happy hours, holidays, etc.), have a video demo, and highlight some possible integrations into several industry aggregator and POS systems.

As someone who is any curious about "how is this implemented behind the scenes", I find it interesting . I am not surprised, as "surge pricing" has already been in place for things like special days when many eat out (e.g. Mothers Day, St. Valentine's Day, St. Patrick's Day), and the technology now makes it possible to go beyond that in an efficient manner. Whether that's good or not will depend on where and when one chooses to eat .

 

[MC Rider]

No Wendys near here. No Mickey D, just BK. Meh to them all.

Not a fan of In N Out. I wish we had a Fatburger.
But we don't so I grill my own, or go to local place, not a chain.

 

[FI_RElater]

There is a startup company, Sauce Pricing, that provides the technology to allow restaurants to implement "dynamic pricing". Their website: https://www.saucepricing.com/

They list the customers that employ their technology, identify several use cases for that their technology can implement (e.g. unique prices for lunches, dinners, happy hours, holidays, etc.), have a video demo, and highlight some possible integrations into several industry aggregator and POS systems.

As someone who is any curious about "how is this implemented behind the scenes", I find it interesting . I am not surprised, as "surge pricing" has already been in place for things like special days when many eat out (e.g. Mothers Day, St. Valentine's Day, St. Patrick's Day), and the technology now makes it possible to go beyond that in an efficient manner. Whether that's good or not will depend on where and when one chooses to eat .

I looked at that companys website- only Tony Romas was even familiar, didn't recognize any other one.. probably all either east coast or west coast places, and haven't seen a Tony Romas in decades as they left the areas we lived at (decent ribs, but I found better)

AFA Wendys, they still do coupons where I'm at and if they failed to accept the price on those... well, that's a class action waiting to happen and I know they'd lose.

If they drop coupons and start "surge pricing" then they are dead to us, although we haven't been to one in years unless on the road traveling. If they try it then, we'll just keep driving....

 

[kgtest]

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.

Lol, me neither. I can't remember the last time I had one of those tasty Frosty's but its been over 10 years. Never was a fan of the burgers but there was one growing up by the boat launch we took our boat to, so I had Wendys hamburgers a lot in the summer growing up.

Dip the fry in the frosty...come on Ronstar you know you've done it!

I actually drove by a Wendy's and almost got a Frosty yesterday, but I kept driving.

 

[kgtest]

Thankfully, I can’t remember the last time I went to a fast food restaurant. From what I hear from my daughter (with kids), they’ve already priced theirselves out of the market. There’s no way I’d pay that much for a burger, or whatever, when I can go to a local bar and get a good burger for not much more. And, I can always cook one better at home for far less.

The bottom line though is that my system just can’t tolerate that type of food anymore. Too salty, too much nasty oil, practically no fruit and/or vegetables. Sorry, those days of eating that are gone.

They did price themselves out. I have 3 little kids, and we used to get chicken nuggets in a pinch. But 2 of our 3 kids don't like basically anything at McDonalds, and I don't like the prices. It was almost $40 to feed my family there so we literally just stopped going. Their loss, not ours. It was super convenient and is the closest "fast food" to us...but we don't miss it.

 

[ERD50]

Uber does surge pricing and it works. ...

The big difference with Uber is that they have lots of part time drivers. Surge pricing brings in more drivers, which helps bring the supply/demand more in balance.

It's not the same with a fast food place, but as others have said, the "Early Bird" deal is a form of it, an attempt to level the demand side, while supply side is not so flexible.

It's all in how they implement it. It could work, but I think people have an expectation of what to pay, so I think it would need to be a rather simple 'Time of Day' style pricing, like with some electric rates. I just don't see an Uber style working for a fast food place. Can you imagine the manager saying that half the staff called in sick, so we are raising prices until half of you walk out?

In my somewhat limited experience with Uber, it seems they were always so much cheaper than a Taxi, and far more convenient than public trans. So if a surge occurred, I'd probably be expecting it (an event at a specific time), so wouldn't be surprised, so I'd just accept it, or decide to wait for a few hours until the rates came down.

-ERD50

 

[Koolau]

Wendy's is my favorite burger joint, but I've quit going due to the ALREADY high prices (same for BK and McD, etc.) I just won't pay the prices though I can certainly afford it. I don't see the value for the money. YMMV

 

[audreyh1]

Yeah, the food supplies are already in the store. They schedule the staff based generally on time of day demand and I would assume the volume already compensates for it. You would think that the busiest times would be the most economically efficient due to fixed overhead.

But no extra charge for slack times when the fast food restaurant is less efficient?

Hmmmmm……. doesn’t really add up to me.

 

[Andre1969]

As mentioned earlier, this isn't that different from "early bird rates" meant to get people into the restaurant at off-peak hours, or a separate, lower-priced lunch menu (although the latter may also have smaller portions). They just didn't market it very well.

To me, it's totally different. The early bird specials are a way to get new customers in, during a normally dead period, and increase your business. The surge pricing is simply trying to fleece the customers you already have.

 

[punkinhead]

Sadly, I think it will work and spread. I watch in amazement at the number of Doordash deliveries in my little cul-de-sac. If these grown adults will pay double to get crappy General Tso's chicken delivered right to their door from the restaurant that's failed a Health Department check every year since it opened they'll certainly pay $1 more for a nearly inedible burger.

 

[Andre1969]

I rarely eat out, but this past Saturday I was running errands, and decided to Blow That Dough. I went to Wendy's, and got a Triple Baconator, with regular fries and a regular (but decent-sized) drink. Sucker set me back something like $15.03. But, I'll say this much for it...it was GOOD! And filling.

 

[Badger]

Sadly, I think it will work and spread. I watch in amazement at the number of Doordash deliveries in my little cul-de-sac. If these grown adults will pay double to get crappy General Tso's chicken delivered right to their door from the restaurant that's failed a Health Department check every year since it opened they'll certainly pay $1 more for a nearly inedible burger.

I never used Doordash and doubt I ever will unless I am bed bound and single.
In Florida there is no requirement to post the Health Department rating so no matter what restaurant you go to you won't know as you walk in. Rising prices, mediocre quality of food, lack of a relaxing environment, loud background music and conversations, uncontrolled children, no or lack of outdoor seating, etc. are all reasons I prefer to prepare my own meals.

 

[DuluthGA]

Chick-fil-a could probably do it.

 

[punkinhead]

In Florida there is no requirement to post the Health Department rating so no matter what restaurant you go to you won't know as you walk in.

We don't have a state requirement but some cities do and they're published in the local paper. But after decades of observation I can safely say that if they have General Tso's chicken you can be reasonably sure they have the lowest score possible.