Popular fast-food restaurant Wendy’s announced it will introduce Uber-style price surging to its menu based on daily demand.
In a recent earnings call, the company said the policy change, dubbed dynamic pricing, will start hitting stores in 2025. The new model will feature new electronic menu screens in stores and at drive-thrus that will update item prices based on demand.
“We expect our digital menu boards will drive immediate benefits to order accuracy, improve crew experience and [boost] sales growth from upselling and consistent merchandising execution,” Wendy’s CEO Kirk Tanner said on the call.
The electronic menus are part of a new $20 million investment program by Wendy’s to introduce artificial intelligence-powered menus to its stores in the U.S.
Once implemented, the menus will be able to shift the prices of certain items throughout the day as business picks up or slows down.
Some customers have spotted the menus already in operation, featuring automated voices and menus that suggest add-ons.
The plan to introduce dynamic pricing means the price-surging policies used by ride-sharing companies such as Lyft and Uber will be coming to the fast-food market. Wendy’s hopes the change benefits its bottom line significantly. The company expects digital sales to reach $2 billion this year, with room to grow once the new menus are implemented.
However, the change might not be altogether popular. Consistency and affordability in pricing are key reasons so many customers choose fast-food outlets like Wendy’s. If prices are higher at dinnertime, customers may choose to opt out.