Wendy's to Test "Surge Pricing" for Burgers

[chromedome]

"Uber Eats" indeed...

https://arstechnica.com/information-technology/2024/02/wendys-plans-ai-powered-menu-to-change-food-prices-based-on-demand-weather/

[blue_dolphin]

2 hours ago, chromedome said:

"Uber Eats" indeed...

https://arstechnica.com/information-technology/2024/02/wendys-plans-ai-powered-menu-to-change-food-prices-based-on-demand-weather/

 

I'm not a fast food eater but I'm curious how this will work. If I'm waiting in line in the drive-thru and I see the prices go up, is there an off-ramp I can use to exit and go somewhere else?

Seems like it could backfire if they're effectively charging people higher prices for the privilege of waiting in line for a longer time!

[chromedome]

I would like to think that this is the "bridge too far," the place where people will draw the line and say "[expletive] this [expletive]" and spend their money elsewhere. To my eye, an ideal outcome would be a backlash that impacts their revenues not only in the test market, but across the entire chain.

 

They won't miss my "once every few years" custom (I don't darken the door of a burger chain very often), but they've lost it for what that's worth.

[rotuts]

its been mentioned on the internet that Wendy's is the most expensive FF joint

 

of the large vendors.

 

no idea if true or click-bait.

 

doubt prices will go up in the middle of a rush

 

but more like the beginning of a rush.

 

might not matter to the type that goes there

 

and the increase probably won't be dollars.

 

interesting to see if it works out.

[Tropicalsenior]

Wendy's opened four or five locations in Costa Rica about 15 years ago. My complaint about them was their deceptive advertising. I never got anything that remotely resembled what I thought I had ordered. Apparently I wasn't the only one unhappy about Wendy's because they closed their doors and left about 5 years ago.

[blue_dolphin]

Instead of “Surge Pricing,” they could have framed it as reducing prices at off-peak hours to encourage customers to visit during slower hours. Of course, there’d likely be an initial price increase so they could knock something off during the slow times but it could be rolled out as a bargain time rather than a penalty. 
 

 

[chromedome]

1 hour ago, rotuts said:

its been mentioned on the internet that Wendy's is the most expensive FF joint

 

of the large vendors.

 

no idea if true or click-bait.

 

doubt prices will go up in the middle of a rush

 

but more like the beginning of a rush.

 

might not matter to the type that goes there

 

and the increase probably won't be dollars.

 

interesting to see if it works out.

I had to look that up.

In Canada, at least, their prices seem in line with the other chains; you're going to pay somewhere around $14-$16 dollars for a burger combo at Wendy's, McDonald's, Burger King or A&W. That's not the "value" combo, mind you, that's a Big Mac or Quarter Pounder, a Whopper, a Baconator, etc. The mainstream burger.

[rotuts]

https://www.today.com/food/restaurants/wendys-surge-pricing-rcna140601

 

' up-sell '

 

[blue_dolphin]

Damage control!

 

[Tropicalsenior]

Sounds to me like too much damage is already done.

[rotuts]

Fast Foodies [ sic ] 

 

won't notice.

 

the three  major food groups

 

right in front of you , and fast :

 

saturated animal fat , sugar , and salt .

 

and hot .

[Tropicalsenior]

Ah, but also right in front of you are 10 other fast food chains with just as much fat, sugar, and salt and consistent prices.

This probably won't destroy Wendy's but it will hurt their bottom line for a while.

[rotuts]

one might then study the Dynamic

 

and Buy Low.

[gfweb]

I'm sure  that they modeled the heck out of this and decided it was a winner.

 

Their announcement though was pretty ham-fisted.

[rotuts]

FF conglomerates are probably very sensitive to their menu's price.

 

the niche of ' cheap' is cheap no longer

 

for their customer base.  

 

the conglomerates hope

 

using the digital menu

 

is not so much to gouge the Hungry Crowd

 

but to move what's not moving 

 

"""   The digital boards are meant to improve order accuracy and increase sales by upselling certain menu items  ""

 

"""   Any features we may test in the future would be designed to benefit our customers and restaurant crew members. Digital menu boards could allow us to change the menu offerings at different times of day and offer discounts and value offers to our customers more easily, particularly in the slower times of day.” ""

 

this assumes they gather accurate data and understand what to do with it

 

this might also help eliminate waste , a subject rarely discussed publicly 

 

and probably closely held by the company.

 

the margins in the FF industry are probably razor thin.

 

drop the price on what's not moving , rather than raise the price of what's moving.

 

this assumes intelligence somewhere .  they may have it

 

or they may not.

Edited February 28 by rotuts (log)

[gastropod]

13 hours ago, blue_dolphin said:

Instead of “Surge Pricing,” they could have framed it as reducing prices at off-peak hours to encourage customers to visit during slower hours. Of course, there’d likely be an initial price increase so they could knock something off during the slow times but it could be rolled out as a bargain time rather than a penalty. 

 

12 hours ago, rotuts said:

https://www.today.com/food/restaurants/wendys-surge-pricing-rcna140601

Quote

Digital menu boards could allow us to change the menu offerings at different times of day and offer discounts and value offers to our customers more easily, particularly in the slower times of day

It sounds like in their clarification they're saying exactly that