Bitch Wendy’s changes stance on ‘dynamic pricing’ after widespread blowback

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Wendy is having a roller coaster of a week, and it’s all her own doing. On Monday morning, reports emerged that Wendy’s new CEO revealed on an investor phone call that the company is considering following a “dynamic pricing” model starting in 2025. The company confirmed the leak and most people equated it to Uber’s surge. Pricing, meaning the cost of Wendy’s food will fluctuate depending on current demand for the product, time of day, and location of the store. The Wendy’s statement also shared that they plan to introduce daypart offerings (menu items that are only available at certain times of the day, such as breakfast) and make menu changes based on factors like weather and “indicators.” Use AI for “Sales”. Example. As you can imagine, people were *not* happy with the dynamic pricing idea. We got beef,Wendy’s! This was along with raising your price.

Obviously, Wendy was dragged too hard. Even Senator Liz Warren got into action, exposing their corporate greed. There was such an uproar that Wendy’s quickly backtracked, dismissing the old “fake news” narrative and accusing the media of misrepresenting her own words.

Wendy’s said Wednesday it has no plans to raise menu prices during times of peak demand, as the burger chain came under criticism on social media sites in the wake of comments made by its CEO earlier this month that suggested was that the chain may begin testing “dynamic pricing”.

CEO Kirk Tanner told investors on a call this month that as early as 2025, Wendy’s will begin testing features including “dynamic pricing and daypart offerings.”

Dynamic pricing refers to surge pricing based on demand, especially during peak hours of the day. Many people link it to changes in airline ticket prices or ride-hailing service Uber adjusting fares during rush hour.

Tanner’s comments sparked an online backlash this week, with some people vowing to stock their freezers with the company’s signature “Frosty” milkshakes for the summer months. US Senator Elizabeth Warren on Wednesday

“We will not be raising prices when our customers are coming to us the most,” Wendy’s said in a statement to Reuters on Wednesday.

Its initiative to add digital menuboards in some stores will allow Wendy’s to more easily offer discounts to customers, “especially during slower times of the day,” the company said.

Wendy’s also claimed that the menuboard would provide more flexibility to change the display of featured items, adding that comments in media reports were “misunderstood” for raising prices during periods of high demand. “We have no plans to do so,” the company said.

Tanner’s comments were a hot topic at a restaurant conference in the Dallas area on Wednesday, with many executives reacting cautiously to the idea that customers — already anxious after recent price hikes — might see price fluctuations. Will welcome.

“I don’t think it’s going to start anytime soon,” said Victor Fernandez, a senior analyst at restaurant analytics firm Black Box Intelligence.

Michael Lukianoff, CEO of SignalFlare.ai, who has consulted with restaurants about pricing for years, said that “dynamic pricing” has been a huge success in other industries like airlines, but won’t work in restaurants. Customers will shop elsewhere,” he said.

[From Reuters]

Here’s a free tip for Wendy’s executives and marketing team: If you don’t plan to raise prices based on demand, Don’t look at it as a pricing module that literally means raising prices based on demand, Let’s be real here. When they confirmed their “dynamic pricing” plan, they fully intended to try surge pricing. It was just a terrible idea that turned into a PR nightmare and they had to come up with the whole, “We meant to say that food would be cheaper during off-hours, not that food would be more expensive during prime hours!”

What did those restaurant consultants say about it not taking off? Yes, no customer will shop anywhere else. That being said, and I hate to be destructive here, but it feels like we are at a crossroads and headed down a slippery slope. This only works in the airline industry because consumers have no weird choice, as every airline harasses us with dynamic pricing. Wendy’s may have held back for now, but now that the cat is out of the bag of bad corporate ideas, I have a feeling that dynamic pricing could give rise to a new era of capitalism. It feels like it’s only a matter of time before someone else tries to raise the prices but package it differently. Sure, right now, competing in fast food may seem like a safe place to be, but if someone tries it and the new model is deemed successful, you can bet your bottom dollar that it’s only a matter of time. When *all* fast food restaurants start doing this, too.

Photo by Celebitchy Note: These are actual memes of Wendy’s on Instagram, as well as a photo from Clara Peller’s Where’s the Beef ad. Tear out. Credit via Getty and YouTube


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