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Wendy’s has walked back the proposed implementation of “surge pricing” following a wave of backlash on social media. The company initially announced plans to introduce dynamic pricing, allowing them to adjust menu prices based on demand, via digital menu boards starting as early as 2025.
Numerous news outlets reported on the information that Wendy’s released during their recent earnings call when CEO Kirk Tanner brought up the proposal on February15th to a group of investors. He said: “We will begin testing more enhanced features like dynamic pricing and daypart offering, along with AI-enabled menu changes and suggestive selling.”
The announcement immediately drew criticism from consumers and social media users as the move was perceived as unfair, suggesting that the model promotes price gouging. Since the news broke, many have been comparing the model with the stock market, and how customers would face such challenges as standing on line at Wendy’s only to find out when they get to the counter that the price of a Baconator had increased by $5 in the five minutes it took for them to be
Even U.S. Senator Elizabeth Warren got in the mix, posting to “X”, calling the plan “price gouging plain and simple.”
And just like that, Wendy’s did damage control, issuing a statement by spokesperson Heidi Schauer as told to The Post: “To clarify, Wendy’s will not implement surge pricing, which is the practice of raising prices when demand is highest. We didn’t use that phrase, nor do we plan to implement that practice. (There are) no plans to do that and would not raise prices when our customers are visiting us most.”
As to what else Wendy’s actually meant when they proposed “dynamic pricing” is anyone’s guess…as the term generally defines pricing models like Ubers surge pricing to meet supply and demand during peak hours. Either Wendy’s walked back the idea after the internet exploded with vitriol (and hilarious memes) or the chain meant something completely different. Something that is as yet…unknown. What do you think, is Wendy’s just doing damage control?
