Wendy’s said it wants to “clarify” its plans to roll out digital menu boards that can change prices for burgers and fries throughout the day — and insisted that Uber-style “surge pricing” isn’t part of the plan.
The burger giant’s CEO Kirk Tanner told analysts this month that new digital menu boards next year would enable the chain to enact “dynamic pricing” — the term Uber uses to describe its model that moves fares higher when demand spikes.
But after reports of Tanner’s comments sparked an uproar this week, Wendy’s spokesperson Heidi Schauer sought to walk them back in a Wednesday statement to The Post.
“To clarify, Wendy’s will not implement surge pricing, which is the practice of raising prices when demand is highest. We didn’t use that phrase, nor do we plan to implement that practice,” she said.
Schauer added that there are “no plans to do that and would not raise prices when our customers are visiting us most.”
That’s after the chain earlier this week said in a statement that “Dynamic pricing can allow Wendy’s to be competitive and flexible with pricing, motivate customers to visit and provide them with the food they love at a great value.”
Asked pointedly on Monday about concerns that Wendy’s would jack up burger prices during peak lunch and dinner hours, the company had declined to comment specifically.
“We will test a number of features that we think will provide an enhanced customer and crew experience,” the company had responded. “We don’t have any additional information to share at this time.”
Before backpedaling on its so-called “dynamic pricing” model, reports that Wendy’s would implement ever-shifting prices sent shockwaves through the restaurant industry.
The Post revealed this week that dozens of nationwide establishments — including barbecue chain Tony Roma’s and popular ice cream franchise Carvel — have already been reaping the benefits of surge pricing.
Wendy’s also posted a news update to its website on Tuesday, which failed to mention any type of pricing model at all and instead focused on the company’s digital menu board investments.
Tanner told investors on the Feb. 5 conference call that the Ohio-based company would invest $20 million on high-tech menu boards that will be able to update prices in real-time without incurring additional overhead costs.
“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,” said Tanner, who rose to the chief role earlier this month.
Las Vegas-based casual eatery Rachel’s Kitchen, earned $64,000 in “additional annual profit across three stores,” according to data from Sauce Pricing, a startup backed by founding members of Sweetgreen, Uber, Airbnb, and several private equity firms.
Sauce pricing said in a blog post that restaurants “have the opportunity to increase item prices by 10% to 20% during the lunch rush so customers might pay an extra $1 to $2 for a $10 item.”
Still, experts in the field warned that Wendy’s should expect backlash, as many consumers “view dynamic pricing as a ripoff,” restaurant analyst Mark Kalinowski told The Post.
Restaurant consultant Arlene Spiegel added: “It won’t fly and guests will be very upset. You can’t surprise a guest with, ‘Your meal will cost another 50 cents or $1 today.’”
Wendy’s is already the most expensive fast-food chain in the US after menu costs rose 35% due to inflation between 2022 and 2023, according to data from consumer transparency platform PriceListo.
