Inflation is driving up food prices all over the nation, especially groceries and fast food. It’s gotten to the point that many see purchasing groceries as a higher expense than eating out. As if the increased prices weren’t enough of a pain, one fast food company has come up with an idea that is just horrible. And we do mean horrible, this idea is the worst!
During a conference call in early February, Wendy’s CEO Kirk Tanner unveiled the company’s plan to test out “dynamic pricing” in 2025. “Dynamic Pricing,” better known as Surge Pricing, is the same concept rideshare companies and ticket sellers operate on. Wendy’s will implement Artificial Intelligence (AI) controlled menu boards that will adjust the price for items throughout the day. This would mean increased item prices during “peak” hours, depending on the restaurant location.
“Beginning as early as 2025, we will begin testing more enhanced features like dynamic pricing and daypart offerings, along with AI-enabled menu changes and suggestive selling,” Tanner 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 is planning on investing $20 million to launch these new digital menu boards in all company-operated locations by the end of 2025. The company will also invest $10 million over the next two years to support these digital menu enhancements globally. Tanner, a previous PepsiCo executive, took over as the Wendy’s CEO in early February. The previous CEO and President, Todd Penegor, held the position since 2016.
Personally, this decision reeks of corporate greed to me. How, in a time of inflation crisis, did this seem like something that would benefit the average American?
UPDATE
Wendy’s has now walked back their plan, and will NOT be implementing surge pricing.
