Uber has had a massive impact on the world since its inception a little over 10 years ago. Private-jet companies have launched Uber-style apps while everyone’s nutritional game has taken a hit thanks to the oh-so-tempting treats that Uber Eats delivers right to your door…
What you might be surprised to hear, however, is that Uber is now influencing the way that long-standing franchises are pricing their products: Wendy’s, one of America’s biggest fast food chains, is set to test an “Uber-style” surge-pricing model that has sparked intrigue and outrage in equal measure amongst customers.
The new strategy will see the cost of menu items fluctuate based on demand throughout the day, so a ‘Dave’s’ burger’ could cost significantly more during peak lunch or dinner hours, for example. Set to roll out next year, the launch will be coupled with the installation of digital menu boards that update item prices in real-time…
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Wendy’s new CEO Kirk Tanner announced the company’s plans to invest US$20 million into high-tech menu boards but failed to specify exactly how much prices could acutally spike at any given moment under the dynamic pricing model, or whether prices would subsequently drop during slower periods.
Wendy’s, which operates over 6,000 locations across the States, claims that dynamic pricing will allow it to remain competitive and flexible. And yet, the move has been met with predictably fierce criticism from industry experts and consumers alike…
Ted Jenkin — CEO of Atlanta-based wealth management firm oXYGen Financial — expressed justified concern over the outsize impact on customers who may not have the flexibility to adjust their meal times. Restaurant consultant Arlene Spiegel warned of further backlash:
“You can’t surprise a guest with, ‘Your meal will cost another 50 cents or $1 today.'”
Arlene Spiegel
The move comes amid rising fast-food costs, with Wendy’s pushing out a 35% menu price increase, they say, due entirely to inflation rises between 2022 and 2023. Franchise owners argue that dynamic pricing is more about easing the burden on kitchen staff during peak hours rather than maximizing profits.
“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…”
Wendy’s Spokesperson
While the news may shock some customers, this has actually been something discussed by the wider industry for many years after seeing success in the airline, hotel, and transportation sectors. Competitors like McDonald’s and Burger King are expected to monitor Wendy’s results closely and, if they like what they see, are liable to follow close behind…
Do you think this is the future of fast food? Or an outright disgrace? Let us know…