Why The Cost Of Your Dave’s Double And Frosty Is About To Start Fluctuating

Fast food customers have been dealing with a bit of sticker shock lately, with widespread complaints about the rise in cost of meals that used to be much more affordable. But while McDonald’s risks losing value-conscious customers with prices hitting as high as $18 for a Big Mac meal, one of its top competitors is taking a different approach.

Embracing the Uber model

In a statement this week, Wendy’s confirmed that it would be unveiling new digital menus by next year that will allow locations to increase or lower prices based on how busy they are. Food delivery and ride-sharing apps have been using so-called “surge pricing” for years, so anyone familiar with these platforms should be familiar with the concept.

But it’s unheard of in the fast-food industry and could signal the direction in which other restaurants will be heading in order to meet demand and maintain profits.

Here’s how it’s will work

Although Wendy’s hasn’t issued an official statement about the new pricing structure, reports indicate that customers should be prepared to spend more for their favorite meals if they visit a Wendy’s location during peak hours (like dinner rush).

On the flip side, you could potentially save a few bucks if you’re willing to order your meal during a period when business is slower.

The new digital menus will instantly reflect price changes, allowing restaurants to update information on the fly.

More than just new menus

While CEO Kirk Tanner told investors that the $20 million investment in digital menus for U.S. locations “will drive immediate benefits,” the chain is also planning some other major projects, including:

• Another $10 million to update menus in international locations
• A $15 million boost to its mobile app and loyalty program
• Major expansions of its fledgling AI-enabled drive-thru experience

Chris Agee February 28th, 2024

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