Wendy’s plans to test a new dynamic pricing system in the US which will see prices fluctuate according to demand.
CEO Kirk Tanner said the new pricing approach will rely on digital menu board technology, with a $20m initial investment.
The concept, also known as surge pricing, and popularised by ride hailing apps like Uber, means Wendy’s could update prices in real time in reaction to demand.
The digital strategy aims to optimize customer flow and manage product demand, which could lead to higher sales and profits for Wendy’s as the company reacts in real time to developments.
Dynamic pricing is also standard in the airline industry, but there is much less precedent for it in the foodservice.
Analysts warned the move could backfire and cause confusion if consumers felt like the company was price gouging.
