Earlier this week, it was revealed during a Wendy’s earnings call that the company would be implementing “Dynamic pricing” for its menu items where customers might have to pay more during times when there’s a higher demand.
CEO Kirk Tanner said “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.”
The “Dynamic pricing”, also known and called “Surge pricing” was mentioned when Tanner stated the following to investors during the call. “We are planning to invest approximately $20 million to roll out digital menu boards to all U.S. company-operated restaurants by the end of 2025, and approximately $10 million over the next two years to support digital menu board enhancements for the global system.”
Tanner added it is believed the digital menu boards will improve order accuracy, grow sales with upselling and merchandising, and improve the crew experience.
“Beginning as early as 2025,” he said, “we will begin testing more enhanced features like dynamic pricing and daypart offerings along with AI-enabled menu changes and suggestive selling.” They have already started AI testing in some locations.
Within our Tri-county area of Charles, Calvert and St. Mary’s we currently have 10 Wendy franchise locations.
The full statement released yesterday can be read below.
“Earlier this month we issued our fourth quarter and full year 2023 earnings results and included an update on investments we are making in our digital business. One initiative is digital menuboards, which are being added to U.S. Company-operated restaurants. We said these menuboards would give us more flexibility to change the display of featured items.
This was misconstrued in some media reports as an intent to raise prices when demand is highest at our restaurants. We have no plans to do that and would not raise prices when our customers are visiting us most. Any features we may test in the future would be designed to benefit our customers and restaurant crew members.
Digital menuboards could allow us to change the menu offerings at different times of day and offer discounts and value offers to our customers more easily, particularly in the slower times of day. Wendy’s has always been about providing high-quality food at a great value, and customers can continue to expect that from our brand.”
