After users on social media were angered over the possibility of a surge pricing test pilot program at select Wendy’s locations, the fast food chain quickly responded, claiming it was never their intention to raise prices but only to offer discounts at select times.
On Tuesday, Wendy’s wrote in a blog post that the planned experiment was “misconstrued.” Rather than adjusting menu prices based on demand, the intention was “to change the menu offerings at different times of day and offer discounts and value offers to our customers more easily, particularly in the slower times of day.”
The planned experiment resembles the business model typically employed in the ride-hailing services industry, whereby fares fluctuate depending on customer demand and driver supply. However, Wendy’s insisted the pricing scheme would only be used to lower prices when demand is slow and not to raise prices when demand is high.
Before Wendy’s had a chance to clarify the new strategy, posters on social media had already pounced on the brand, with many users calling for a boycott.
“While Wendy’s plans to price gouge you with Uber-style surge pricing, it’s simultaneously enriching wealthy shareholders with a $500 million stock buyback program. That’s the thing about corporate greed: It’s shameless. They’ll just keep pushing to see how far they can go,” Berkeley professor and former Secretary of Labor Robert Reich posted on X on Tuesday.
Wendy’s version of “dynamic pricing,” as it is known, was first announced on an earnings call. The initiative was part of the company’s $20 million investment in new digital menu boards. CEO Kirk Tanner said the state-of-the-art menus will allow the fast food giant to trial “more enhanced features like dynamic pricing and day-part offerings along with AI-enabled menu changes and suggestive selling.”
