Wendy's to test surge pricing

[MillauFr]

Where I used to live, McDonald's was charging a dine in tax.

I wonder if that was just to prevent the restaurants from becoming homeless day shelters like they did in Seattle. Most of the McDonalds have closed and those that do remain don't allow in person dining. The Chipotles that are right next to the McDonalds are perfectly fine.

 

[MillauFr]

I feel like Disney is different since there really isn't any other product like it and Disney knows that, which is why they charge the prices that they do. Wendy's, on the other hand, is just another fast food chain. People have a way easier time abandoning Wendy's and moving to a competitor vs. Disney.

Aren't they just trying to shift demand to down periods?

 

[Imzadi]

It just occurred to me, several years ago, when McDonalds ice cream machines were routinely broken around the country, people created an app or posted on social media when an ice cream machine in their area was broken and when it was working.

I'm sure someone will do the same for Wendy's. Or people will create (multiple) Twitter/X/Facebook accounts for various areas. Others will post in those area when the prices go up and what time the prices go back down. And if they change the prices as people flood in during a cheaper price time, people will post AGAIN.

"Prices just went up at 4:32 at the Wendy's on Main St and Center St, Mayberry, IA."

"Prices are back down at 4:47 as everyone walked out of the Wendy's on Main St and Center St, Mayberry, IA."

Maybe once these restaurants see people will literally walk out and wait for the lowered prices, or they only "catch" 2-3 customers at the higher prices, Wendy's will finally abandon this stupid pricing plan.

 

[MillauFr]

They should have just raised all prices and then offered Happy Hour pricing from 2p - 5p.

 

[DodgerGirl]

I am a Wendy's fan and if I was on a desert island Wendy's would be the one fast food restaurant I could survive on. But what I think Wendy's is trying to do is try to compete with Jack In The Box and McDonald's because those two fast food restaurants have dollar deals on their menu and with this new surge pricing Wendy's thinks they can compete with Jack In The Box and McDonald's. When I eat at Wendy's I get a plain hamburger and my mom gets the Baconator and Dad gets a Dave's Double and when you get the general picture this is a great deal better than the Biggie Bag that Wendy's offers all the time. But due to this news I think Wendy's will begin to lose customers and will soon go belly up in the future. Because other fast food restaurants such as Arby's and The Habit Burger Grill have had deals that are better than Wendy's but I think Wendy's will try to develop a cheaper menu like McDonald's did with their Dollar Menu and Mini-Meals

 

[BayouQueen]

This may not come to pass, guys. The idea was tossed out there and I'm seeing very vocal negative feedback all over the place from the fans.
Maybe they'll come up with a better idea.

 

[loves to dive]

The only thing I eat at Wendy's is the occasional salad and that's not very often. I used to like their fries but they changed them. We live out in the middle of nowhere but about 20 min. down the road in one direction is "town" and the other an exit to I75 (which is fast food heaven) so we have plenty of options if we want to get in the car and drive for 20 min. I'll get my salad from Zaxby's, I like theirs better any way.

 

[Babs Johnson]

I can’t remember the last time I went to a Wendy’s. It must be at least 10 years. Surge pricing won’t bring me back.

 

[Uncle Coaster]

It wouldn't change my mind that time. I'd pay for my food, eat it, and grumble (or, more likely, listen to DH grumble ) but the next time we were picking a place to stop on a road trip, you bet it would be somewhere else.


But the perception is vastly different. A discount for going at a certain time is a bonus. - If you know the regular price, don't know about the discount, and happen to go there at the right time, you feel like the universe smiled on you. Yet a surge at particular time, higher than the "regular" price you are familiar with, will make you feel like you're being treated unfairly.

True. But nobody from Wendy’s said that this is what is going to happen. They never used the word surge. They used dynamic. While the article claims they are one and the same, they are not.

 

[sam_gordon]

Really, this is not unusual. Restaurants and bars have "happy hours"... discounted drinks/apps at certain times. Disney charges differently based on the day/park you choose. To say nothing about hotels, airlines, gas prices, etc. I remember going to various buffet restaurants (occasionally still do), and they charge more on a weekend or for dinner for the exact same food.

It's just technology is now allowing Wendy's to do the change "in real time".

I like Wendy's. If this comes to pass, I will avoid them during the normal "rush" times. As far as them going out of business because of this? Really? If it does cause sales to drop, they'll simply go back to how they used to do it. Remember when JC Penny's said "we're not having sales anymore!"? The prices consumers paid never changed, it just wasn't a "sale". People stopped buying. Penny's reversed, marked up everything again and put it on sale. Businesses change marketing all the time.

 

[TippyThomas]

It seems a lot of the people who don't like this either don't go to Wendy's or go so seldom that it really won't make much of a difference to Wendy's if you stop going. I'd imagine this will work itself out by either being a huge marketing blunder or the smartest thing they ever did, or something in between. I'm betting on something in between.

 

[Micca]

Yeah I wish it would have failed at Disney. The place would be empty by now.

"Nobody goes there anymore, it's too crowded." --YB

 

[Nancyg56]

This appears to be a major marketing blunder.

LOL! They dont seem to be able to comprehend their error. They have now stated that they are implementing "fluctuating" prices. Not Surge. Ummmmm?

 

[mom2rtk]

This may not come to pass, guys. The idea was tossed out there and I'm seeing very vocal negative feedback all over the place from the fans.
Maybe they'll come up with a better idea.

I agree. It's very possible this was a trial balloon.

I don't think it's that remarkable though that they are moving to electronic order boards. McDonalds has had those for a while now. They could go to dynamic pricing pretty easily but I just don't see it happening. For now, I'm sure they like the convenience of being able to update the ice cream to "not available" as often as necessary.

 

[soccerdad72]

LOL! They dont seem to be able to comprehend their error. They have now stated that they are implementing "fluctuating" prices. Not Surge. Ummmmm?

As mentioned a couple times, nowhere that I've read does it say (from Wendy's) that they're implementing "surge" pricing. That was a term used by the media outlets reporting this, not from Wendy's. Everyone's speculating at this point.

 

[Moliphino]

They've clarified, they don't mean surge pricing and charging more during busy times.

https://qz.com/wendys-surge-pricing-burgers-uber-dynamic-pricing-1851292583

“Dynamic pricing” is widely understood to mean changing prices as demand fluctuates to maximize revenue. But after an initial backlash from customers, Wendy’s says Tanner didn’t mean “surge pricing” when he said “dynamic pricing.” The company spokesperson told NBC there are “no plans” to raise prices at high-demand times.

“We said these [digital] menu boards would give us more flexibility to change the display of featured items. This was misconstrued in some media reports as an intent to raise prices when demand is highest at our restaurants,” the Wendy’s spokesperson said. “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,” the spokesperson sadded. “Digital menu boards 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.”

 

[Nancyg56]

As mentioned a couple times, nowhere that I've read does it say (from Wendy's) that they're implementing "surge" pricing. That was a term used by the media outlets reporting this, not from Wendy's. Everyone's speculating at this point.

We will see. Surge? Dynamic? Fluctuating? I have stayed away from fast food restaurants lately because i no longer see their value. IMO, they have begun to outprice their convenience, and while I am not "cheap" I am testy when it comes to having buyers remorse over a burger and fries. I do take the girls when they want to go, so I cannot say that I would boycott any one of these businesses, (I actually do not boycott many places, but i do tend to avoid the ones that cost more than I believe they are worth)

I plan to see what they actually do vs what they say them meant. A happy hour or early bird special discount is not the same thing as an increase in the normal price during a busy time.

 

[MillauFr]

We will see. Surge? Dynamic? Fluctuating? I have stayed away from fast food restaurants lately because i no longer see their value. IMO, they have begun to outprice their convenience, and while I am not "cheap" I am testy when it comes to having buyers remorse over a burger and fries. I do take the girls when they want to go, so I cannot say that I would boycott any one of these businesses, (I actually do not boycott many places, but i do tend to avoid the ones that cost more than I believe they are worth)

I plan to see what they actually do vs what they say them meant. A happy hour or early bird special discount is not the same thing as an increase in the normal price during a busy time.

Happy hour is the exact same thing as dynamic pricing.

 

[MillauFr]

It seems a lot of the people who don't like this either don't go to Wendy's or go so seldom that it really won't make much of a difference to Wendy's if you stop going. I'd imagine this will work itself out by either being a huge marketing blunder or the smartest thing they ever did, or something in between. I'm betting on something in between.

They just need to call it happy hour pricing and people would be all over it.

 

[Nancyg56]

Happy hour is the exact same thing as dynamic pricing.

Yes. As i said, I will watch and see if their version is to allow discounts during specific times, or if they choose to bump prices up. For me the end result is key. Personally, I think that many FF restaurants may not have an accurate idea of how people view them. Convenience, necessity? I don't know, but some may find that their importance in the lives of the folks who have patronized them is diminished when those folks begin to feel taken advantage of.

I tend to take the girls to Red Robin. It is a 25 minute drive vs a 3 minute drive, but for about the same money they get their meals, I get mine. We enjoy endless fries. We have a server and eat off of plates, drink out of glassware, and if I want a cocktail I can have it. My fries are hot. I am not scraping them out of a paper bag after they were tossed in sideways.

Subway is another one that baffles me. I get the girls gift cards there because they can get a sandwich after school before they walk to the library. If there was anywhere else within walking distance for them, I would do that. The cost of that weaselly sandwich when compared to our local sub shop is the same, but the quality is way different.