Is Wendy’s food that good for all this?
Wendy’s customers will be paying a little more for their tasty burgers as the company is implementing a price surge to its menu.
The strategy is similar to ride-sharing company, Uber, adding pricing, known as surge pricing, that fluctuates product prices based on factors such as the weather or the time of day.
The company hopes that the massive investment will give them “flexibility to change the menu more easily,” assist with drive-thru traffic and provide more value during slower parts of the day.
Experts like George Washington University economics professor Steven Suranovic say plans like this aren’t new for other industries, but being tested in fast food elevates technology.
“This has been around in a few industries already, but in the context of fast food, it’s a new development and is pushing the technology to new places,” Suranovic said.
While the spokesperson said the new pricing will “allow Wendy’s to be competitive,” Suranovic thinks some customers will get the low end of the stick. “Dynamic pricing enables them to take that surplus away from consumers and put it into the firm’s pocket,” he said.
“Ultimately, the biggest losers would be lunchtime customers. If people feel like they’re getting gouged, they’re not going to take kindly to this dynamic pricing strategy.”
“Pummeled by inflation, they’re eating at home more frequently as grocery prices come down.”
Source: Black Enterprise
