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Wendy's Plans to Introduce Surge Pricing

Wendys Plans to Introduce Surge Pricing
The company plans to introduce dynamic pricing as early as 2025 along with digital menu boards that would reflect price changes, Wendy’s chief executive said during a February earnings call.
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Surge Pricing for Burgers and Shakes? Wendy’s Will Give It a Whirl.

The company plans to introduce dynamic pricing as early as 2025 along with digital menu boards that would reflect price changes, Wendy’s chief executive said during a February earnings call.

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A cyclist rides in front of a Wendy's fast food restaurant.
Wendy’s new chief executive said the chain would alter prices based on demand starting in 2025.Credit...Hiroko Masuike/The New York Times
Lola Fadulu
Feb. 27, 2024, 3:48 p.m. ET

Maybe you are the type who enjoys biting into a warm, spicy chicken nugget from Wendy’s, and at $5.99 for a 10-piece in Midtown Manhattan, it is a tempting treat.

Soon, you may want to consider what time it is before you satisfy such a craving, because the fast-food chain is going to price those crispy chunks of meat and other menu items differently, depending on demand.

The company plans to begin testing dynamic pricing as early as 2025, Wendy’s president and chief executive, Kirk Tanner, said during a February earnings call.

In other words, the prices of a Wendy’s Vanilla Frosty and other menu items will rise and fall based on demand. The feature will be rolled out along with digital menu boards that would reflect the price changes; the company plans to invest approximately $30 million in those initiatives.

“We are always focused on improving the customer and crew experience, and in that spirit, we are leveraging technology in our restaurants even more,” Mr. Tanner said.

Mr. Tanner, who became the Wendy’s chief executive last month after a long career at PepsiCo, did not offer many details during the call on how much prices could rise, or exactly how the dynamic pricing model would work.

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