TAMPA, Fla. (WFLA) – Fast food giant Wendy's may adopt a “surge pricing” model similar to that of ride-sharing companies, the company hinted during an earnings call last week.
During a call with investors on February 15, CEO Kirk Tanner said the company plans to spend about $20 million to roll out digital menu boards in all restaurants by the end of 2025.
He says the new menu boards will allow restaurants to experiment with “surge pricing,” meaning customers can pay more for the same items depending on demand and time of day.
Testing will begin as early as 2025, Tanner said.
“We will begin testing more enhanced features such as dynamic pricing and daypart offerings, along with AI-powered menu changes and suggestive selling,” Tanner said.
He did not go into detail about the pricing structure or how much a customer could cost for a burger during the lunchtime rush compared to later in the afternoon.
The company recently rolled out Wendy's FreshAI platform in some restaurants to allow its employees to focus more on making fresh foods, Tanner said.
FreshAI will automate the driving experience in hopes of improving speed, accuracy and consistency, the company said in a blog post detailing the technology in December.
Uber uses a “surge pricing” model that causes some prices to rise significantly depending on the level of demand and the amount of drivers available. Lyft is also known for similar practices, however, the company said it plans to scale back the practice, according to Engadget.
