Burger chain to test ‘surge pricing’ based on demand
A US burger chain will test charging more for its menu items based on demand throughout the day, implementing a strategy used by ride-sharing companies and ticket sellers.
Wendy's burger chain will test surge-pricing depending on demand. Photo: AAP
Wendy’s CEO Kirk Tanner said that the Ohio-based burger chain will start testing dynamic pricing, also known as surge pricing, as early as next year.
“Beginning as early as 2025, we will begin testing more enhanced features like dynamic pricing and day-part offerings, along with AI-enabled menu changes and suggestive selling,” he said.
“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.”
Wendy’s Co plans to invest about $US20 million ($A31 million) to launch digital menu boards at all of its US company-run restaurants by the end of 2025.
It also plans to invest approximately $US10 million over the next two years to support digital menu enhancements globally.
– AAP
