Wendy’s planning Uber-style ‘surge pricing’ where burger prices fluctuate based on demand

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Wendy’s is preparing to test an “Uber-style” surge-pricing model where prices will fluctuate throughout the day based on demand — meaning a Dave’s burger will cost more during the lunchtime rush.

Wendy’s CEO Kirk Tanner — who rose to the chief role earlier this month — announced the new system on a call with investors, noting that the pricing menu will begin testing in 2025

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With the dynamic pricing model, the chain’s iconic Dave’s Single could increase by as much as $1 at lunchtime and drop down by the same amount after the lunch rush.

With constant pricing shifts, Wendy’s will rely on “digital menu boards,” Tanner said.

After an initial $20 million in the high-tech menus, the Ohio-based company will be able to update its prices in real-time without incurring additional overhead costs, according to Tanner.

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With the dynamic pricing model, New Yorkers could expect to shell out nearly $10 for a cheeseburger at lunchtime — not including a drink or fries.

Data from consumer transparency platform PriceListo has already determined that Wendy’s is the most expensive fast-food chain in the US after menu costs rose 35% due to inflation between 2022 and 2023.

https://nypost.com/2024/02/26/business/wendys-planning-surge-prices-based-on-fluctuating-demand/