In Wendy’s fourth quarter earnings update, they announced they will be rolling out new digital menu boards at its fast-food locations to have more flexibility in changing the display of featured items. Some of this information has been misinterpreted in media reports claiming that they will incorporating surge pricing during peak hours which is not factual. Wendy’s said in a statement: “We have no plans to do that and would not raise prices when our customers are visiting us most. Any features we may test in the future would be designed to benefit our customers and restaurant crew members. Digital menu boards could allow us 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.”
Dynamic pricing is an enhanced pricing strategy without resorting to surge pricing tactics. By focusing on dynamic pricing without surge pricing, Wendy’s is aiming to provide customers with fair and transparent pricing while also maximizing revenue and customer satisfaction. This enables them to offer different items on their boards that are more popular, for example, depending on weather or time of day. This approach could represent a shift towards more personalized and responsive pricing models in the fast-food sector and create a new trend for the food service industry as a whole. It will be interesting to see how these boards function in real time and create a win-win for both the customer and Wendy’s fast-food chain.
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Wendy’s considers dynamic pricing pilot without ‘surge pricing’ | Chain Store Age
About The Author: Jeff Dervech
Jeff Dervech is a Tampa local commercial real estate agent, specializing in the arena of retail strip center and shopping centers.
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