Wendy's to test surge pricing

[BrianL]

They've clarified, they don't mean surge pricing and charging more during busy times.

https://qz.com/wendys-surge-pricing-burgers-uber-dynamic-pricing-1851292583

“Dynamic pricing” is widely understood to mean changing prices as demand fluctuates to maximize revenue. But after an initial backlash from customers, Wendy’s says Tanner didn’t mean “surge pricing” when he said “dynamic pricing.” The company spokesperson told NBC there are “no plans” to raise prices at high-demand times.

“We said these [digital] menu boards would give us more flexibility to change the display of featured items. This was misconstrued in some media reports as an intent to raise prices when demand is highest at our restaurants,” the Wendy’s spokesperson said. “We have no plans to do that and would not raise prices when our customers are visiting us most.”

“Any features we may test in the future would be designed to benefit our customers and restaurant crew members,” the spokesperson sadded. “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's damage control, but it's good to hear it. I think they may have tossed this little nugget out there to see the reaction - easy to pivot after the backlash.

 

[MillauFr]

It's damage control, but it's good to hear it. I think they may have tossed this little nugget out there to see the reaction - easy to pivot after the backlash.

I think they found out that any publicity is good publicity. Look what happened to Coke sales after the so called New Coke debacle. Sales increased.

 

[BrianL]

I think they found out that any publicity is good publicity. Look what happened to Coke sales after the so called New Coke debacle. Sales increased.

I still believe that New Coke was a ploy. It did exactly what it was supposed to do - remind everyone why they loved Coca-Cola in the first place. Some call it a debacle, but it may have actually been genius!

 

[Dan Murphy]

BK response on their app today.

 

[BayouQueen]

I do think the media's use of the word "surge" is unfortunate. It makes it sound like Uber where you pay a fortune for a ride on a holiday. I don't think that's what Wendy's has in mind.
Now I'm off for a spicy chicken san.

 

[mom2rtk]

BK response on their app today.

View attachment 837553

Hah! That didn't take long.

Someone needs to do a "where's the surge?" campaign.

There's just so much competition in this, there's no way Wendy's plan will work.

 

[Uncle Coaster]

What’s Wendys’ plan?

 

[Praying Colonel]

The company spokesperson told NBC there are “no plans” to raise prices at high-demand times after having been called on it.

Wanted to clean up that PR quote.

Well done, everybody!

 

[Imzadi]

They've clarified, they don't mean surge pricing and charging more during busy times.

https://qz.com/wendys-surge-pricing-burgers-uber-dynamic-pricing-1851292583

“Dynamic pricing” is widely understood to mean changing prices as demand fluctuates to maximize revenue. But after an initial backlash from customers, Wendy’s says Tanner didn’t mean “surge pricing” when he said “dynamic pricing.” The company spokesperson told NBC there are “no plans” to raise prices at high-demand times.

“We said these [digital] menu boards would give us more flexibility to change the display of featured items. This was misconstrued in some media reports as an intent to raise prices when demand is highest at our restaurants,” the Wendy’s spokesperson said. “We have no plans to do that and would not raise prices when our customers are visiting us most.”

“Any features we may test in the future would be designed to benefit our customers and restaurant crew members,” the spokesperson sadded. “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.”

I sniff backpedaling. WHY would Wendy's need to announce at all that they are switching to digital menu boards? McDonalds did it a while ago and didn't have to make any sort of announcement.

Unless it's an AI board that has digital face recognition and speaks out suggestions: "Hello again customer #482316! Welcome back to Wendy's! Do you want another single with cheese, hold the pickles and onions again? I can add that onto your order along with the large Coke, no ice, you ordered last time you were here." Now THAT would be worth advertising.

 

[Imzadi]

What’s Wendys’ plan?

It's being re-tooled as we speak.

 

[cabanafrau]

I feel like Disney is different since there really isn't any other product like it and Disney knows that, which is why they charge the prices that they do. Wendy's, on the other hand, is just another fast food chain. People have a way easier time abandoning Wendy's and moving to a competitor vs. Disney.

IMO Disney is and has been coasting on the reputation of the Disney difference for several years now. For my money we now live in the era of Disney is different.

The tides definitely seem to have shifted in recent years and the seas seem to be quite choppy for several companies who thought their status in public preferences was securely anchored. McDonald's, Coca Cola, Budweiser and other well-established bellwethers are all looking for ways to adapt to changing habits and preferences of consumers. It's actually surprising that, whatever Wendy's announcement may have actually meant, it wasn't smothered long before being made public.

 

[Smugpugmug]

IMO Disney is and has been coasting on the reputation of the Disney difference for several years now. For my money we now live in the era of Disney is different.

The tides definitely seem to have shifted in recent years and the seas seem to be quite choppy for several companies who thought their status in public preferences was securely anchored. McDonald's, Coca Cola, Budweiser and other well-established bellwethers are all looking for ways to adapt to changing habits and preferences of consumers. It's actually surprising that, whatever Wendy's announcement may have actually meant, it wasn't smothered long before being made public.

That conversation is for another thread (which will be made or has been made already) but all I was saying is that it's harder for people to jump ship and go to a competitor that is exactly like Disney than for people to shift what fast food restaurant they go to. Wendy's is not doing anything special in the market.

It seems like they're currently doing major backpedaling regardless, which is both hilarious and to be expected.

 

[Mle8308]

They've clarified, they don't mean surge pricing and charging more during busy times.

https://qz.com/wendys-surge-pricing-burgers-uber-dynamic-pricing-1851292583

“Dynamic pricing” is widely understood to mean changing prices as demand fluctuates to maximize revenue. But after an initial backlash from customers, Wendy’s says Tanner didn’t mean “surge pricing” when he said “dynamic pricing.” The company spokesperson told NBC there are “no plans” to raise prices at high-demand times.

“We said these [digital] menu boards would give us more flexibility to change the display of featured items. This was misconstrued in some media reports as an intent to raise prices when demand is highest at our restaurants,” the Wendy’s spokesperson said. “We have no plans to do that and would not raise prices when our customers are visiting us most.”

“Any features we may test in the future would be designed to benefit our customers and restaurant crew members,” the spokesperson sadded. “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.”

Walking it back, except it's still the same thing, just said in a different way. Items will be cheaper when lower demand, or as they say "offer discounts and value offers to our customers more easily particularly in the slower times of the day" - so when it's not slower, no discounts. So yes, it is surge pricing, they are just trying not to call it that. It's really no different from what hotels and airlines and rideshares do, it's just the first time a fast food chain has come out and detailed what they are doing. PR move after the initial bad press. I am in MA and that is one of the states they said they were going to try it. Was all over the news yesterday and people were not happy. In this case, I don't think it was to their advantage.

 

[PollyannaMom]

As mentioned a couple times, nowhere that I've read does it say (from Wendy's) that they're implementing "surge" pricing. That was a term used by the media outlets reporting this, not from Wendy's. Everyone's speculating at this point.

But you'd think their marketing team would have reviewed the plan for "what can the media do with this?" - kind of like parents reject potential names based on "what will the other kids change this to at recess?"

I think they found out that any publicity is good publicity. Look what happened to Coke sales after the so called New Coke debacle. Sales increased.

That's a valid point. - We are all talking about Wendy's now. Whether that will make anybody actually go is another question.

I do think the media's use of the word "surge" is unfortunate. It makes it sound like Uber where you pay a fortune for a ride on a holiday. I don't think that's what Wendy's has in mind.
Now I'm off for a spicy chicken san.

If it was all just meant for surprise discounts in the slow hours, they really could have come up with a better way to announce/advertise it.

 

[cabanafrau]

That conversation is for another thread (which will be made or has been made already) but all I was saying is that it's harder for people to jump ship and go to a competitor that is exactly like Disney than for people to shift what fast food restaurant they go to. Wendy's is not doing anything special in the market.

It seems like they're currently doing major backpedaling regardless, which is both hilarious and to be expected.

You raised the point, I responded and suddenly you want it not to be discussed? I no longer believe Disney has proper claim as king of the castle, or princess of the castle in Disney's case, as they once did. When it's no longer a given that innovation, customer service, creativity, cleanliness, comfort, atmosphere, maintenance will always be superior, more and more people begin to assess value for price paid much more closely. The fact that it's a conversation instead of the slam dunk of the past is of concern.

Wendy's is well aware they have to fight for every millimeter in order to retain their lane. Surely they have a lot of eyes going over campaign ideas before they greenlight them for public viewing. Nobody raised the idea this approach might not be poorly received from the jump?

 

[Mle8308]

You raised the point, I responded and suddenly you want it not to be discussed? I no longer believe Disney has proper claim as king of the castle, or princess of the castle in Disney's case, as they once did. When it's no longer a given that innovation, customer service, creativity, cleanliness, comfort, atmosphere, maintenance will always be superior, more and more people begin to assess value for price paid much more closely. The fact that it's a conversation instead of the slam dunk of the past is of concern.

Wendy's is well aware they have to fight for every millimeter in order to retain their lane. Surely they have a lot of eyes going over campaign ideas before they greenlight them for public viewing. Nobody raised the idea this approach might not be poorly received from the jump?

Guess not!

 

[Smugpugmug]

You raised the point, I responded and suddenly you want it not to be discussed? I no longer believe Disney has proper claim as king of the castle, or princess of the castle in Disney's case, as they once did. When it's no longer a given that innovation, customer service, creativity, cleanliness, comfort, atmosphere, maintenance will always be superior, more and more people begin to assess value for price paid much more closely. The fact that it's a conversation instead of the slam dunk of the past is of concern.

Wendy's is well aware they have to fight for every millimeter in order to retain their lane. Surely they have a lot of eyes going over campaign ideas before they greenlight them for public viewing. Nobody raised the idea this approach might not be poorly received from the jump?

I wasn't the one that initially brought up Disney, that was the poster I was responding to.

 

[Nancyg56]

That conversation is for another thread (which will be made or has been made already) but all I was saying is that it's harder for people to jump ship and go to a competitor that is exactly like Disney than for people to shift what fast food restaurant they go to. Wendy's is not doing anything special in the market.

It seems like they're currently doing major backpedaling regardless, which is both hilarious and to be expected.

I agree. When it comes to fast food choices, there are so many to choose from. You can ignore those that you want, patronize those that you find to be a value, and look for entirely different options just because. Fast food is not a necessity or a rite of passage.

Disney is an entirely different animal. My family has chosen not to go in recent years, but that does not mean that we don't have heartstrings tugging at us. Memories of trips gone by, coupled with nieces and nephews who now want to take their own youngsters and want us to join them, make it difficult to plan go elsewhere. Disney is Disney. I know that we are not discussing them with regards to cost vs value, but as you said, it is another discussion and one that my family has had a few times in the past few years. We will not when it is time to go with the newest set of young ones. My husband is a firm believer in WDW for kids, and since it is my godchild who wants us to go, we are going.

 

[cabanafrau]

I wasn't the one that initially brought up Disney, that was the poster I was responding to.

I responded to your statement regarding Disney being different: stated why I disagreed. Our opinions and viewpoints are different and that's okay. No need to declare a gag order on differing opinions.

 

[wabbott]

https://www.msn.com/en-us/money/com...r-after-backlash-no-surge-pricing/ar-BB1j3MeV

Wendy’s Makes It Clear After Backlash: No Surge Pricing
The fast-food company says its dynamic-pricing strategy was misconstrued

By Joseph De Avila
Updated Feb. 28, 2024 2:22 pm EST

Wendy’s won’t be beefing up the price of a lunchtime burger after getting salty feedback.

On a mid-February earnings call, the fast-food chain’s new CEO Kirk Tanner had said Wendy’s would “begin testing more enhanced features like dynamic pricing” as early as next year.

To do so, Wendy’s was investing about $20 million to roll out artificial intelligence-enabled digital menu boards in U.S. restaurants, and $10 million to support such efforts globally, he said.

The dynamic-pricing detail didn’t catch much attention at the time. But about two weeks later, the headlines started, comparing Wendy’s strategy to Uber. The ride-hailing company is known for its surge-pricing strategy, when prices rise due to heavy demand.

On social media, people poked fun at the chain and complained about paying sky-high rates at lunchtime for a burger.

People even jokingly raised the prospect of arbitrage trading—a market strategy of profiting off tiny differences in the price of an asset.

“Engaging in burger arbitrage by buying burgers when cheap and then reselling at below peak Wendys prices during the lunch rush,” said one post on X.

Politicians got involved in the commentary. Massachusetts Sen. Elizabeth Warren, a Democrat, said Wendy’s plan was “price gouging plain and simple.”

Dynamic pricing often entails charging higher rates at times of high demand, and such strategies are commonplace in many industries. Airlines and gas stations have long used it. In recent years, it became more widespread among retailers as a response to higher costs. The practice has even crept into gyms, golf courses and bowling alleys.

Sometimes consumers push back. When AMC Entertainment started charging more for the best seats in theaters during prime viewing times, some moviegoers complained. The theater company reversed course months later.

Wendy’s, which has been facing sluggish comparable-sales growth in the U.S., scrambled to course-correct. It posted a statement on its website Tuesday saying its dynamic-pricing plan has been misconstrued, and it wouldn’t raise prices at the busiest times.

Instead, Wendy’s pointed to better deals for customers. It said new digital menus could allow it to change menu items during the day and offer discounts, particularly at slower times.

On Wednesday, the company specifically disavowed surge pricing. “We didn’t use that phrase, nor do we plan to implement that practice,” Wendy’s said.

Write to Joseph De Avila at joseph.deavila@wsj.com