Wendy’s to start rolling out surge pricing with ‘AI-enabled menu changes’

globalnews.ca:

Wendy’s is planning to roll out dynamic pricing for its fast-food offerings starting as early as next year.

The chain will start testing the new pricing system “in some U.S. restaurants,” Wendy’s said in a statement to Global News. There are currently no plans to introduce this system in Canada — at least, not yet.

Dynamic pricing, also known as surge pricing, is the practice of setting flexible prices for products and services, meaning the price paid by customers can fluctuate based on market demands. Uber is a high-profile company that famously employs dynamic pricing. During busy times, the price of an Uber car-share ride is generally higher than during lower-traffic periods.

“We are making a significant investment in technology to accelerate our digital business,” Wendy’s said of the change. “In addition to evolving our loyalty program, one of the other benefits of these investments will be the flexibility to change the menu more easily and to offer discounts and value offers to our customers through innovations such as digital menuboards.”

The company says this new policy is aimed at driving sales “during slower parts of the day” and “based on factors such as weather.”

“As early as 2025, we plan to test a number of features such as AI-enabled menu changes and suggestive selling based on factors such as weather that we think will provide great value and an improved customer and crew experience,” Wendy’s states.

Wendy’s CEO Kirk Tanner discussed the policy during a conference call earlier this month.

“As we continue to show the benefit of this technology in our company-operated restaurants, franchisee interest in digital menu boards should increase, further supporting sales and profit growth across the system,” he