Wendy's backtracks on surge-pricing after CEO touched off firestorm with 'dynamic pricing' announcement
'We didn’t use [surge-pricing] phrase, nor do we plan to implement that practice,' Wendy's spokesperson says
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Fast food staple Wendy's claimed that it will not use "surge pricing" at its restaurants after a controversy over variable pricing was reported in media outlets.
"Wendy’s will not implement surge pricing, which is the practice of raising prices when demand is highest," a spokesperson for the company told Fox News Digital. "We didn’t use that phrase, nor do we plan to implement that practice."
Dynamic pricing, also known as surge pricing, is when the price of a product or service fluctuates according to demand or other factors, such as calling for an Uber ride during rush hour or at a highly attended event.
WENDY'S TO ROLL OUT UBER-STYLE SURGE-PRICING, WITH MENU PRICES FLUCTUATING BASED ON DEMAND
Fast food staple Wendy's claimed that it will not use "surge pricing" at its restaurants after a controversy over variable pricing methods was kicked up by media outlets. (Getty Images / Wendy's Restaurants LLC)
The company issued a statement on Tuesday, pointing to "digital menuboards" in U.S. locations. "We said these menuboards would give us more flexibility to change the display of featured items," the statement continues. "This was misconstrued in some media reports as an intent to raise prices when demand is highest at our restaurants. 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," according to the statement. "Digital menuboards 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."
According to The New York Post, Wendy's CEO Kirk Tanner also referred to these digital menu boards at a Feb. 5 conference.
"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," Tanner reportedly said.
Wendy's did not respond specifically as to how it defines "surge pricing" vs. dynamic pricing. (REUTERS/Mike Blake/File Photo / Reuters Photos)
"Wendy’s is the most expensive fast-food chain in the U.S. after menu costs rose 35% due to inflation between 2022 and 2023, according to data from consumer transparency platform PriceListo," The Post reported.
Wendy’s will reportedly spend $20 million to implement new features like digital menu boards that would reflect fluctuating prices in real time.
A spokesperson previously confirmed to Fox News Digital that the company will be using AI to assist with its menu system.
"Beginning as early as 2025, we will begin testing a variety of enhanced features on these digital menu boards like dynamic pricing, different offerings in certain parts of the day, AI-enabled menu changes and suggestive selling based on factors such as weather," the spokesperson said.
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Fox News' Alexander Hall contributed to this report.
