Wendy's to add surge pricing to menu items.

[Andre1969]

It's simple. Just realize that corporate will do whatever they *think* will net more profit, and then ask yourself how they might accomplish this without outright lying...

Increase all prices by 30% (or whatever). Then start applying discounts to the inflated prices, maxing the discounts at 30% (or 25%, or maybe 35% - see, we *lowered* prices!). It's dynamic pricing, not surge pricing! We care about *you*, our valued customer!!

You would think that that corporate would have realized that the American customer isn't going to be fooled by this kind of trickery, and that the concept of it is as old as the hills.

Heck, I remember an episode of "Little House on the Prairie" where Mrs. Oleson wanted to jack up prices at the mercantile, and then advertise a "sale price" that was still more than the original price.

But, I guess in some instances it works. Otherwise, corporate wouldn't keep trying it.

 

[Midpack]

The Today show on NBC is still reporting Wendy’s plan to adopt surge pricing this morning (Wed 3/6), 9 days after Wendy’s issued a corrected statement. WTH?

 

[CaptTom]

I think most of us assume the original statement was the more accurate. A slip of the tongue, maybe. But once they realized they'd let people know what they really had in mind, they did some backpedaling and PR firefighting.

It's all corporate double-speak. Not a very convincing retraction, IMHO.

As for the American consumer not being fooled, I have even less confidence in that than a corporation speaking plainly and honestly.

 

[sengsational]

^ True, that. They'll do whatever is required to improve the quarter, all the while assuming consumers have a short memory and are overall, pretty dim. I was thinking there should be an app that tracks pricing to keep them honest...no just less deceitful.

 

[CaptTom]

And you can get a deal -

In order to get your $1 or $2 burgers, customers will need to add either a Dave’s Single or Dave’s Double to an order in the Wendy’s app, before going to the Wendy’s offers page and adding the discount to the order. You’ll also need to sign up for a Wendy’s account – or log in to an existing account — to claim this deal. (The fine print also says that you can only get one $1 or $2 burger at a time, and each Wendy’s account can only redeem the offer once before April 10.)

To plagiarize a bit...

Not gonna happen!

 

[MichaelB]

I have no doubt Wendy’s will continue trying to implement dynamic pricing (aka surge). Once embraced and announced by the exec, even flawed new initiative stake a long time to die.

The American consumer should not be doubted. She is not stupid, knows when prices are higher and can find better deals. There will be no shortage of alternatives.

The time to raise prices was back when inflation was over 5% and consumers had restricted choices. We are now entering a phase where bargains rule.

 

[Midpack]

The time to raise prices was back when inflation was over 5% and consumers had restricted choices. We are now entering a phase where bargains rule.

+1, let’s hope.

 

[JohnML]

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.

Best comment. I've already plagiarized it.

 

[CaptTom]

I have no doubt Wendy’s will continue trying to implement dynamic pricing (aka surge)...

Agreed.

The American consumer should not be doubted. She is not stupid, knows when prices are higher and can find better deals.

I hope you're right. But from long experience and observation of buyers, I remain skeptical. I honestly believe most US consumers don't shop on price.

Just look at how popular those "order by number" meals, which include high-profit, low-value items like fries and a soft drink, are.

Go down the snack aisle of any supermarket these days. The prices are so wildly disconnected from reality that it's hard to believe anyone would buy a bag of chips. But swing by the register and you'll see customers loading up on them.

Look at how brand names are priced way above, sometimes multiples of, the less-advertised brands. And how well they sell.

I think it's hard to argue that most consumers are not gullible. A good ad campaign brings a bigger return than offering a good value.

Finally, there's the BTD crowd who want to spend more. They want to brag about how much they paid. They want to be seen in the latest designer fashions. They want to buy "premium" gas even though their car manufacturer doesn't recommend it. It's not uncommon to see a corner with two gas stations across the street from each other, selling at different prices. And somehow, the one with the higher price still has customers coming and going.

Granted, Wendy's isn't the trendiest place to be seen spending your money. But that's all the more reason why some people order the more expensive items. It's all about not wanting people to think they care about cost.

 

[MichealKnight]

hehe

Will the corporate managers, and A.I experts be on hand, especially in tertiary areas......to explain to irate customers why their price is higher than they thought it would be, or wanted it to be?

Answer....

Prolly not.

Franchisees will get dinged for it.

Upside: interesting YouTube videos will be generated via all this.

 

[GenXguy]

This was rolled back by Wendy's - not going to happen.

https://www.today.com/food/restaurants/wendys-surge-pricing-rcna140601

No, it wasn't rolled back. They stated they were never planning it and that the media misconstrued it, as reported multiple times in this thread already.
https://www.early-retirement.org/fo...icing-to-menu-items-121120-7.html#post3060575

 

[Chuckanut]

The electronic signs that only show a partial menu at any given time must make last miniute price switching a huge temptation. Hmmm.. eveybody wants a chocolate shake today? Add 20¢ to the price the next time it shows up on the screen. Cow tongue burgers not selling well? Cut the price by 35$ during to see if we can get rid of the nasty stuff.

 

[Koolau]

I'm still amazed that companies allow such communications to slip out occasionally. Accidentally open and honest about pricing? What's up with that?

 

[MichaelB]

I'm still amazed that companies allow such communications to slip out occasionally. Accidentally open and honest about pricing? What's up with that?

Right. If you want open, transparent and honest pricing look to the health care industry.

Just in case, the above is a poke at the least price transparent business in the world.

 

[MichaelB]

I think focusing on the app is a real opportunity. The app can do things that the clerk behind the counter cannot, such as upsell based on marginal price and promote specific items or combinations.

 

[sengsational]

I think focusing on the app is a real opportunity. The app can do things that the clerk behind the counter cannot, such as upsell based on marginal price and promote specific items or combinations.

If they employed what we used to call a "build to plan" environment (where you make X Big Dave's Deluxe's to cover the noon to 1pm rush, in advance of expected orders), then the app could reduce the risk of having leftovers by upselling those leftovers on the app after the rush, but before the burgers in the bin hit expiration time. Perhaps a win-win if the offer is for a lower price. They're free to keep the drive-through moving at a break-neck speed during the rush, and then not having to throw away the burgers made in advance. Although I might recall that Wendy's claim to fame is that they are a "build to order" supplier?

 

[Koolau]

If they employed what we used to call a "build to plan" environment (where you make X Big Dave's Deluxe's to cover the noon to 1pm rush, in advance of expected orders), then the app could reduce the risk of having leftovers by upselling those leftovers on the app after the rush, but before the burgers in the bin hit expiration time. Perhaps a win-win if the offer is for a lower price. They're free to keep the drive-through moving at a break-neck speed during the rush, and then not having to throw away the burgers made in advance. Although I might recall that Wendy's claim to fame is that they are a "build to order" supplier?

No comment on the gist of your post: Over the years, I have been informed by two knowledgeable people (one a former Wendys manager) that "left over" burgers are not a problem to Wendys. Wendy's (according to her) always had burgers "ahead" at rush time to speed the lines. If the burgers got more than "so many" minutes unsold, they were (wait for it) cut up into pieces for the Wendys Chili. No wasted pre-cooked burgers. I don't recall the time limit but I do recall being very surprised at just how short a time it was (maybe 3 minutes?) It was a VERY short time.

I believe this is why my favorite fast foods are from Wendys. (heh, heh, not sure what that would have to do with my love of Wendys Frosty, but...)

Returning you now...

 

[Chuckanut]

I thought we had put a stake through the heart of this idea but Today's online WSJ there is this:

If you are hungry for barbecue on a Saturday night this month, a delivery of a pulled-pork sandwich from Cali BBQ could cost you around $18.
Or you could hold off a few days and order the same sandwich delivered on a weekday afternoon for around $12.

Shawn Walchef, Cali BBQ’s owner, said that variable pricing attached online to the pulled-pork sandwich boosted the four-unit chain’s $30,000 in monthly delivery sales by $1,500 since the company began testing it in early 2023.

Dozens of restaurant brands use Juicer’s technology to change their prices based on demand trends, with an average swing of up to 15%, Patterson said. Delivery services such as Uber Eats and technology platforms like Tock also allow restaurants to bump prices up or down.

Here's an alternative point of view:

Dine Brands, the parent of Applebee’s and IHOP
, looked at the technology but passed because their customers are price sensitive, Chief Executive John Peyton said in an interview. “We don’t think it’s an appropriate tool to use for our guests at this time,” he said.

 

[audreyh1]

That does it!

I don’t eat at those places anyway and since I smoke meat/poultry as a hobby I’m afraid few BBQ joints get my business anymore.

But these guys are going to overdo this and pi$$ a lot of customers off! Media will also have a hey day over this.

Dine Brands will save themselves a lot of grief and be able to turn it around as a major selling point.

 

[Trooper]

I've already instructed my broker to buy hamburgers at 4 am and sell at noon.

That's hilarious! Well done...no pun intended.

 

[punkinhead]

I thought we had put a stake through the heart of this idea but Today's online WSJ there is this:

Here's an alternative point of view:

It's interesting that they only mention the pricing changes for delivery customers. I'm guessing that customers who are willing to pay for someone to deliver their food aren't price sensitive. I wonder if they raise prices on the weekends for eat-in or carryout customers or if this is just an online ordering thing.

 

[audreyh1]

It's interesting that they only mention the pricing changes for delivery customers. I'm guessing that customers who are willing to pay for someone to deliver their food aren't price sensitive. I wonder if they raise prices on the weekends for eat-in or carryout customers or if this is just an online ordering thing.

Yeah, that makes more sense.

 

[Time2]

I guess I have lost that fast food craving.

I would add my own fixings to that thin burger.
3 oz uncooked burger works better for me then 4 oz these days anyway.


It's still a free country. Eat what you want.

My 30 year old kids still talk about my frugal(?) wife taking the them to McDonald's as young children, she wouldn't let them get cheese on their burgers. They had to wait until they got home to put cheese on from the fridge.
I have bought a to go salad by the pound from Golden Coral, skipped the garbanzo beans, and added them from a can when I got home. I could buy enough salad for 2 meals for about $5.30. Not anymore!

 

[Time2]

The American consumer should not be doubted. She is not stupid, knows when prices are higher and can find better deals. There will be no shortage of alternatives.

I'm not so sure! My daughter has a dental office, the ladies in her office order Starbucks Coffee with delivery service. Recently she pointed out to them that they paid an extra fee for the delivery, plus the high cost of the coffee from Starbucks. They didn't know about the extra delivery fee. They also have coffee in the office they can drink.


P.S. I visited her office last Friday and had a crown installed. Only 279 more crowns, and we will be even for her tuition cost.

 

[Andre1969]

My 30 year old kids still talk about my frugal(?) wife taking the them to McDonald's as young children, she wouldn't let them get cheese on their burgers. They had to wait until they got home to put cheese on from the fridge.
I have bought a to go salad by the pound from Golden Coral, skipped the garbanzo beans, and added them from a can when I got home. I could buy enough salad for 2 meals for about $5.30. Not anymore!

When I was a kid, I remember McDonald's being a special treat, as we rarely ate out. 1979-80 was an especially rough time, as Mom bought a house down in White Plains, MD, and money was tight. Mom got paid every other week, and I can remember every other Wednesday, we'd go to McDonald's. There was one in Waldorf, and one in LaPlata, and we'd alternate between the two.

There's also been times, in my adult years, when I would notice how much more a burger or sandwich cost with cheese, vs without it, and would just skip the cheese.