During a conference call, Wendy’s announced it was introducing dynamic prices to its business model. That means the cost of menu items would change throughout the day. Although the burger chain feels this move will pay off, investors and customers are not so sure…
Wendy’s is Investing a Lot to Charge Us More
The idea of Wendy’s prices being higher or lower depending on the time of day is not such a big stretch…
Ride-sharing companies use this practice successfully all the time. Furthermore, other fast food eateries like Chipotle have thrived by raising their prices.
However, the brand known for square-shaped patties is investing millions of dollars in this initiative.
$20 MILLION IN DIGITAL MENU BOARDS TO START WITH.
AP News reported that Wendy’s CEO, Kirk Tanner, said this about the company’s plans…
“Beginning as early as 2025, we will begin testing more enhanced features like dynamic pricing and daypart offerings, along with AI-enabled menu changes and suggestive selling. 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.”
On top of that, Wendy’s has put another $15 million into developing its app.
The hopes of the company are high for this move but so are the stakes…
Investors Unsure of Dynamic Wendy’s Prices…
Not only was there social media backlash — similar to McDonald’s higher prices — after Wendy’s announced dynamic prices…
SHARES OF THE COMPANY’S STOCK FELL AS WELL.
As a whole, it looks like fast food chains are in a tough position. The cost of supplies is going up across the board. Yet, consumers are not willing to pay luxury prices for their fast food fixes.
Restaurants like Wendy’s will have to strike a balance with their prices.
After all, how much are you willing to pay for a Frosty at the end of the day?
Be Great,
GCTV Staff
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