Wendy's to test surge pricing

[barkley]

One more reason to avoid greasy, overpriced food and cook at home. Unless grocery stores start surge pricing, too. Hate the idea.

I wonder what the term is for the opposite of surge pricing? Enticement pricing? I have never heard a specific phrase used for the automatic lowering of prices to try to generate business or spread out customer demand.

pre-surge pricing maybe?

it's not advertised or even displayed in the pricing signage but it's pretty common knowlege that one of locally owned grocery chains with a VERY popular pre-made hot and cold food section has different pricing at different times. on weekdays their surge of shoppers happens between about 5 and 7 p.m. when people are on their way home from work and stop to grab items for dinner/lunch the next day (they make some realy good hot and reheatable items). yet...if you wander in during the afternoon when they are madly preparing and packing the heated and cold holding areas or after 7:30 when they are straightening it out and restocking-the identical items ring up for $2-$4 less at the registers. i get it if we are talking about later in the evenig when there's stuff left they want to clear out but nope, walk in at 4:45 and pick up something and walk through checkout will have if paying less than if you delay and checkout at 5

 

[Magical2017]

pre-surge pricing maybe?

it's not advertised or even displayed in the pricing signage but it's pretty common knowlege that one of locally owned grocery chains with a VERY popular pre-made hot and cold food section has different pricing at different times. on weekdays their surge of shoppers happens between about 5 and 7 p.m. when people are on their way home from work and stop to grab items for dinner/lunch the next day (they make some realy good hot and reheatable items). yet...if you wander in during the afternoon when they are madly preparing and packing the heated and cold holding areas or after 7:30 when they are straightening it out and restocking-the identical items ring up for $2-$4 less at the registers. i get it if we are talking about later in the evenig when there's stuff left they want to clear out but nope, walk in at 4:45 and pick up something and walk through checkout will have if paying less than if you delay and checkout at 5

Wow, I had not realized this. The only hot food I buy at the grocery store is an occasional rotisserie chicken, but it is always the same price as advertised so I never noticed.

 

[fla4fun]

But people can't often switch out when they can eat. By it's nature, fast food is something you grab on your way somewhere. Or on a lunch break at work. And I'm not waiting to have dinner so I can get a lower price on a fast food burger.

I agree, although everywhere I have worked there were people who would go to lunch at 11:30 or at 1:00 to avoid the crowds at restaurants, without any price incentive to do so. If Wendy’s decides to offer an incentive to those who choose to dine outside of the 12:00-1:00 lunch period, perhaps more people would do so. If I knew my lunch would be cheaper at 11:30 than at 12:00, I would certainly try to take advantage of the opportunity.

I know there are some employers who have assigned or unchangeable lunch periods, and their emplotees would not be able to take advantage of a setup like that. Of course, we also don’t know exactly what Wendy’s will actually be doing with their prices either. It’s all a guess until it actually happens.

 

[Micca]

The only way for this to work is if all the FF places do it, I can't see that happening.

 

[BrianL]

The only way for this to work is if all the FF places do it, I can't see that happening.

Oh, and I can totally see the competitors making fun of it in thier ads. "Come to McDoanlds for the same great value all day, every day! Ba da ba ba ba!"

 

[_19disnA]

I think most people eat lunch around noon. Having a lower price @ 9am or 3pm isn't likely to change when people each lunch.............LOL. Similarly if they jack up their prices around the normal lunch hour I would suspect people will go elsewhere. Every fast food place is competing against all of the other brands who sell basically the same thing. Panera raised their prices a few years ago and the food isn't any better, despite their clever marketing, it just costs more. Haven't eaten there in a long time either.

Wendy's salads used to be good but haven't eaten there in several years, no idea what they currently sell.

 

[jimmymc]

I feel like this could work. If you show up to the drive thru, see a burger costs $1 more than yesterday, how many people would actually turn around and leave? I think most people are just going to pay and not bother changing their habits. Prices have gone up so much for fast food anyway that it seems like people are willing to pay for the convenience.

 

[Smugpugmug]

Panera raised their prices a few years ago and the food isn't any better, despite their clever marketing, it just costs more. Haven't eaten there in a long time either.

Panera is hospital cafeteria food that somehow costs $30.

 

[soccerdad72]

I feel like this could work. If you show up to the drive thru, see a burger costs $1 more than yesterday, how many people would actually turn around and leave? I think most people are just going to pay and not bother changing their habits. Prices have gone up so much for fast food anyway that it seems like people are willing to pay for the convenience.

That's what I was thinking too. I still wonder what the breakever point will be. I suppose Wendy's might find out.

 

[barkley]

Panera raised their prices a few years ago and the food isn't any better, despite their clever marketing, it just costs more. Haven't eaten there in a long time either.

seems like they've lost loads of customers. i like certain foods they make but while i could occasionaly justify snagging it they were never the least expensive option. i'm now seeing panera being used as the example in articles about needless spending that adds up, debt reduction and wasting money (starbucks must be happy).

never sign up for their app-you get constantly harrassed to join their unlimited sip club

 

[jimmymc]

I think most people eat lunch around noon. Having a lower price @ 9am or 3pm isn't likely to change when people each lunch.............LOL. Similarly if they jack up their prices around the normal lunch hour I would suspect people will go elsewhere. Every fast food place is competing against all of the other brands who sell basically the same thing. Panera raised their prices a few years ago and the food isn't any better, despite their clever marketing, it just costs more. Haven't eaten there in a long time either.

Wendy's salads used to be good but haven't eaten there in several years, no idea what they currently sell.

Panera lost all interest when I realized their soups and pastas are exactly the same as what they sell in grocery stores. They just take it out of a bigger bag and heat it up. Other places have better sandwiches.

 

[Uncle Coaster]

Not exactly the same but not terribly different than an early bird special, really.

 

[White Cat]

I like Wendy’s and fast food in general. I really don’t mind or care that they are doing this. I order and really don’t care if it’s a few more dollars.

 

[mom2rtk]

Not exactly the same but not terribly different than an early bird special, really.

But this isn't an early bird special. More like a late bird fleecing.

 

[soccerdad72]

But this isn't an early bird special. More like a late bird fleecing.

To be fair, as others have pointed out, nothing so far has indicated that pricing will increase during peak hours. We've all just assumed it. Wendy's hasn't stated with the "dynamic pricing" would involve.

 

[Genie+]

I think the risk is changing people’s habits. Going up in price opens the field of competition. For $15 each I’ll do that Mediterranean place instead, or do the chinese takeout that’s cheaper and has enough for 2 people.

Another risk is perceived value. A mediocre meal is less satisfying at a higher cost.

 

[kdonnel]

I wonder what the term is for the opposite of surge pricing? Enticement pricing? I have never heard a specific phrase used for the automatic lowering of prices to try to generate business or spread out customer demand.

Isn't that a sale?

 

[Genie+]

Could this be marketing genius? Surge pricing captures people’s attention. With relevance increased, they then switch to the message that prices are lower at certain times. That could create more interest and awareness than just saying they have late afternoon deals or something like that. It’s setting people up to remember.

 

[Kennywood]

Somewhere, Dave Thomas is rolling his eyes and shaking his head.....

 

[Cannot_Wait_4Disney]

I like Wendy’s and fast food in general. I really don’t mind or care that they are doing this. I order and really don’t care if it’s a few more dollars.

Consider this one marked if you go grouching about inflation. Just sayin......