Wendy's said it wanted to “clarify” its plans to introduce digital menu boards that can change the prices of burgers and fries throughout the day – and insisted that Uber-style “price hikes” were not part of the plan.
The burger giant's CEO Kirk Tanner told analysts this month that new digital menu boards next year would allow the chain to introduce “dynamic pricing” – the term Uber uses to describe its model that drives prices increased when demand increases.
But after reports of Tanner's comments caused an uproar this week, Wendy's spokeswoman Heidi Schauer sought to dismiss them in a Wednesday statement to The Post.
“For the avoidance of doubt, Wendy's will not implement price increases, which is the practice of raising prices when demand is highest. We have not used this expression and do not intend to implement this practice,” she said.
A spokesperson told The Post on Wednesday that it “will not be implementing any price increases” and has “no plans” to increase prices during peak hours. The note contradicts a previous statement about its alleged “dynamic pricing model,” which is said to be being tested starting in 2025. SOPA Images/LightRocket via Getty Images
Schauer added that there are “no plans to do so and we will not increase prices when our customers visit us most often.”
This comes after the chain said in a statement earlier this week: “Dynamic pricing can allow Wendy's to be competitive and flexible in pricing, motivate customers to visit, and give them great food they love.” Price to offer.”
When asked specifically Monday about concerns that Wendy's would drive up burger prices during peak lunch and dinner times, the company declined to comment specifically.
“We will test a number of features that we believe will provide an improved customer and crew experience,” the company had responded. “We cannot share any further information at this time.”
Before Wendy's moved away from its so-called “dynamic pricing model,” reports that Wendy's would introduce constantly changing prices sent shockwaves through the restaurant industry.
The Post revealed this week that dozens of establishments nationwide – including barbecue chain Tony Roma's and popular ice cream franchise Carvel – have already benefited from the price hikes.
Wendy's also posted a news update on its website Tuesday that made no mention of its pricing model and instead focused on the company's investments in digital menu boards.
Tanner told investors on the Feb. 5 conference call that the Ohio-based company would invest $20 million in high-tech menu boards capable of updating prices in real time without incurring additional overhead costs .
“As we continue to demonstrate the benefits of this technology in our company-owned restaurants, franchisee interest in digital menu boards should continue to grow, supporting sales and profit growth across the system,” said Tanner, who ascended to the leadership role earlier this month .
Wendy's CEO Kirk Tanner updated investors on the dynamic pricing model earlier this month. Wendy's The fast food giant announced it would invest $20 million in digital menu boards. Returning to his statements about dynamic pricing, a spokesperson for Wendy's emphasized the company's investments in its “digital business.” Wendy's
Las Vegas-based casual restaurant Rachel's Kitchen generated an “additional annual profit of $64,000 in three,” according to data from Sauce Pricing, a startup backed by founding members of Sweetgreen, Uber, Airbnb and several private equity firms Branches”.
Sauce Pricing said in a blog post that restaurants “have the opportunity to increase item prices by 10% to 20% during the lunch rush, meaning customers may pay $1 to $2 more for a $10 item.”
Still, experts in the field warned that Wendy's should expect a backlash because many consumers “see dynamic pricing as a rip-off,” restaurant analyst Mark Kalinowski told The Post.
Restaurant consultant Arlene Spiegel added, “It's not going to fly and guests are going to be very upset.” You can't surprise a guest by saying, “Your meal will cost another 50 cents or $1 today.”
According to consumer transparency platform PriceListo, Wendy's is already the most expensive fast food chain in the U.S. after menu costs rose 35% between 2022 and 2023 due to inflation.