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Wendy's is preparing to test an "Uber-style" model in which prices would fluctuate based on demand, with higher costs during the restaurant's busiest lunch or dinner hours, the New York Post reports.
Wendy's CEO Kirk Tanner, who began his position with the company earlier this month after previously serving the same role at PepsiCo, revealed the company's plan during a call with investors, which will include a $20 million investment on high-tech menu boards featuring updated prices in real-time.
“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,” Tanner said via the Post.
Tanner didn't specify how much the pricing model could spike based on surge periods or whether items could decrease lower than the base price during slower periods, nor did a Wendy's spokesperson who spoke directly to the Post amid the company's plans.
“Dynamic pricing can allow Wendy’s to be competitive and flexible with pricing, motivate customers to visit and provide them with the food they love at a great value,” the spokesperson said. “We will test a number of features that we think will provide an enhanced customer and crew experience.”
Wendy's is already the most expensive fast-food chain in the U.S. after its average prices increased by 35% between 2022 and 2023 due to inflation, according to data shared by PriceListo, a consumer transparency platform, via the Post.