TAMPA, Fla. (WFLA) — Fast food giant Wendy’s may adopt a “surge-pricing” model similar to that of ride-sharing companies, the company hinted during an earnings call last week.
During a Feb. 15 investor call, CEO Kirk Tanner said the company plans to spend about $20 million to roll out digital menu boards to all restaurants by the end of 2025.
The new menu boards, he says, will allow restaurants to experiment with “surge pricing,” meaning customers could pay more for the same items depending on demand and time of day.
Tanner said the testing will begin as early as 2025.
“We will begin testing more enhanced features like dynamic pricing and daypart offering, along with AI-enabled menu changes and suggestive selling,” Tanner said.
He didn’t go into detail about the pricing structure or how much more it could cost a customer for a burger during the lunchtime rush compared to later in the afternoon.
The company also recently rolled out its Wendy’s FreshAI platform to some restaurants to allow its employees to focus more on making fresh food, Tanner said.
FreshAI will automate the drive-thru experience in hopes of improving speed, accuracy, and consistency, the company said in a blog post detailing the technology in December.
Uber uses a “surge-pricing” model which results in some prices becoming significantly higher depending on the level of demand and amount of available drivers. Lyft is also known for similar practices, however, the company said it plans to cut back on the practice, according to Engadget.