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Buffalo March 1, 2024 11:26AM HT
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FOOD AND DINING


WENDY'S WILL START TESTING DYNAMIC PRICING ON ITS MENU IN 2025, SAYS IT WON'T BE
USED TO RAISE MENU PRICES

By Susan Carpenter New York City
UPDATED 1:55 PM ET Feb. 28, 2024 PUBLISHED 11:06 AM ET Feb. 27, 2024 PUBLISHED
11:06 AM EST Feb. 27, 2024
SHARE


The prices for a Dave's Single, Baconator or classic Frosty dessert could
fluctuate based on demand under a new plan that the Wendy's chief executive
mentioned during an earnings call earlier this month.

The Ohio-based fast food company, which operates about 7,100 restaurants in the
U.S., plans to start testing its dynamic pricing menu next year.

--------------------------------------------------------------------------------

WHAT YOU NEED TO KNOW

 * WENDY'S WILL EXPERIMENT WITH DYNAMIC PRICING ON ITS MENU IN 2025
   
   
 * THE FAST FOOD CHAIN ANNOUNCED THE PLAN DURING AN EARNINGS CALL EARLIER THIS
   MONTH
   
   
 * THE DYNAMIC PRICING PLAN IS PART OF A $20 MILLION INVESTMENT THE COMPANY IS
   MAKING IN DIGITAL MENUS
   
   
 * WENDY'S OPERATES ABOUT 7,100 LOCATIONS IN THE U.S.

--------------------------------------------------------------------------------

It’s one component of a $20 million digital menu investment that will enable
Wendy’s operators to experiment with altering prices based on how much traffic
they have. The company also plans to change its menu based on time of day.

“We are making a significant investment in technology to accelerate our digital
business,” a Wendy’s spokesperson told Spectrum News.

One of the benefits of the investment “will be the flexibility to change the
menu more easily and to offer discounts and value offers to our customers
through innovations such as digital menu boards, which will roll out in some
U.S. restaurants.”

The spokesperson said it expects the move to drive traffic by “providing value
during slower parts of the day.”

Starting in early 2025, Wendy’s will also test AI-enabled menu changes and
so-called suggestive selling, where customers are offered recommendations based
on factors such as weather.

A spokesperson for Wendy's later sought to clarify that they "have no plans" to
raise prices during peak times.

"We said these menuboards would give us more flexibility to change the display
of featured items," the spokesperson said. "This was misconstrued in some media
reports as an intent to raise prices when demand is highest at our restaurants.
We have no plans to do that and would not raise prices when our customers are
visiting us most.

"Any features we may test in the future would be designed to benefit our
customers and restaurant crew members," they added. "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."

NOTE: This article has been updated to reflect new comment from a Wendy's
spokesperson.





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