(WBBM NEWSRADIO) -- The price of items on the menu at Wendy’s could fluctuate as the hamburger chain introduces Uber-style “surge” pricing.
But will it fly in a space that has been known for consistency and stability?
“It certainly is a unique approach, and something that a few fast-food chains have talked about, but I think there’s been some reluctance to actually pull the trigger on surge pricing,” RJ Hottovy, head of analytical research at foot traffic analysis firm Placer.AI, told the Noon Business Hour on Tuesday. “Then, again, too, we’re dealing with a new reality in terms of consumer behavior.”
Hottovy said he’s not sure consumers will tolerate price fluctuations, at least not extreme ones.
“It’s a dangerous strategy right now,” he said. But Hottovy added it could become a trend with Wendy’s competitors if the chain enjoys success.
Earlier this month, Wendy's CEO Kirk Tanner said that the Dublin, Ohio-based burger chain will start testing dynamic pricing as early as next year.
Wendy's Co. plans to invest about $20 million to launch digital menu boards at all of its U.S. company-run restaurants by the end of 2025. It also plans to invest approximately $10 million over the next two years to support digital menu enhancements globally.
The chain and its franchisees operate about 7,000 restaurants worldwide.
Shares of Wendy's fell slightly in Tuesday morning trading.
Contributing: The Associated Press
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