Wendy’s is getting ready to change up the burger game as the fast food company prepares to use a surge-pricing model, where the cost of menu items will fluctuate throughout the day based on demand, like an Uber, hotel room, or plane ticket.
The pricing model sees burgers get pricier during the lunch and dinner rush when more people visit the restaurants while bottoming out when traffic is slow in “off-peak” hours.
Wendy’s new CEO, Kirk Tanner, said the new system will be tested next year while speaking with investors on a call this week.
Along with the new pricing style, Tanner said the company would be investing $20 million on high-tech menu boards that update the prices in real-time.
“As we continue to show the benefit of this technology in our company-operated restaurants, franchisee interest in digital menu boards should increase further, supporting sales and profit growth across the system,” Tanner said.
When it comes to how high the new pricing model would put burgers, fries, and frosties, the company didn’t share, though a spokesperson for the fast food chain told the New York Post that they are planning on testing “a number of features that we think will provide an enhanced customer” experience.
“Dynamic pricing can allow Wendy’s to be competitive and flexible with pricing, motivate customers to visit, and provide them with the food they love at a great value,” the Wendy’s spokesperson told The Post.
According to an analysis from PriceListo, Wendy’s is already the most expensive fast-food chain in the US after its prices jumped 35% from 2022 to 2023 because of inflation.