Wendy’s has issued a clarification after Tuesday reports that the fast food giant intended to initiate Uber-style dynamic pricing depending on fluctuating demand.
“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,” a Wendy’s spokesperson reportedly said Tuesday.
The news caused a firestorm on social media, leading the restaurant chain to walk it back on Wednesday.
“We have no plans to do that and would not raise prices when our customers are visiting us most,” the company announced in a new media statement.
The reports of dynamic pricing first arose out of comments regarding new menu boards made by Wendy’s CEO Kirk Tanner during a call with investors.
“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.
It was purported that the boards would respond to demand and update prices before customers in real time, and many were quick to criticize the alleged change.
“@Wendys is planning to try out ‘surge pricing’ — that means you could pay more for your lunch, even if the cost to Wendy’s stays exactly the same,” Sen. Elizabeth Warren (D-MA) said in a statement posted to X.
“It’s price gouging plain and simple, and American families have had enough,” Warren wrote.
Wendy’s attempted to clarify the intentions of the boards in its latest media statement.
“Earlier this month we issued our fourth quarter and full year 2023 earnings results and included an update on investments we are making in our digital business. One initiative is digital menuboards, which are being added to U.S. Company-operated restaurants,” the statement reads. “We said these menuboards 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.
“Digital menuboards 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 continues.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
Any changes tested by Wendy’s are designed for the benefit of staff and customers, according to the chain.
“Wendy’s has always been about providing high-quality food at a great value, and customers can continue to expect that from our brand,” the statement reads.
