Wendy’s, $WEN, is planning Uber-style ‘surge pricing’ where burger prices fluctuate based on demand
Wendy’s, $WEN, is planning Uber-style ‘surge pricing’ where burger prices fluctuate based on demand.
Wendy’s CEO Kirk Tanner, who assumed the role earlier this month, revealed the plan for a new pricing system in a call with investors. The company aims to begin testing the dynamic pricing menu in 2025.
Under this new model, prices for Wendy's signature Dave’s Single quarter-pound burger, currently priced at $5.99 in a Newark, NJ, Wendy's, could increase by up to $1 during lunchtime. Conversely, prices could drop below $5.99 by as much as $1 during slower periods in the mid-morning and late afternoon, as reported by the Daily Mail.
To implement these constant pricing shifts, Wendy's will rely on "digital menu boards," according to Tanner. The initial cost of implementing these high-tech menus is expected to be $20 million. However, once in place, the company will be able to update prices in real-time without incurring additional overhead costs.
Already, the price of a Dave’s Single varies by location. For example, the Newark, NJ, location charges $5.99, while a Wendy's outpost in Times Square charges $8.19.
With the introduction of dynamic pricing, New Yorkers could potentially pay nearly $10 for a cheeseburger during lunchtime, not including additional items like drinks or fries.
Data from the consumer transparency platform PriceListo indicates that Wendy's became the most expensive fast-food chain in the US, with menu costs rising by 35% due to inflation between 2022 and 2023.
It remains unclear if Wendy's prices will fluctuate by more than $1 under the new system next year. Wendy's representatives, representing over 6,000 locations nationwide, did not immediately respond to The Post's request for comment.