Wendy's, the popular fast-food chain, is set to introduce surge pricing on its menu items by 2025 as it implements digital menus across all its US locations. This new pricing model will see menu items fluctuate in price depending on demand during the time of order, similar to how ride-share apps like Uber and Lyft operate.
Currently, a Wendy's Baconator burger is priced at $9.79, but with surge pricing in place, the cost may increase during peak hours such as 6 p.m. in the evening rush. Wendy's has not disclosed which items will be affected or how much prices may vary.
The company plans to invest $20 million to install digital menu boards in all US restaurants by 2025, making it easier to change the menu and offer discounts to customers. Additionally, Wendy's will spend $10 million to upgrade digital menu boards worldwide over the next two years.
CEO Kirk Tanner stated that the digital menu boards are expected to drive immediate benefits for the company. Wendy's is also investing $15 million in 2024 to enhance its mobile app experience and loyalty program, with the goal of reaching $2 billion in global digital sales by 2024.
Furthermore, Wendy's will continue to expand its AI-enabled drive-thru service, which was launched in June. The company plans to implement AI menu changes and suggestive selling based on factors like weather by 2025.
Overall, Wendy's is making strides to become more tech-savvy and enhance the customer experience through digital innovations and personalized offerings. The introduction of surge pricing may be a shift in the fast-food industry, but it aligns with the company's commitment to leveraging technology to drive growth and improve efficiency.