On Feb. 15, Wendy’s president and CEO, Kirk Tanner, discussed “dynamic pricing” during a public earnings call.
Many news outlets reported that Tanner was talking aboutsurge pricingwhich involves raising prices based on demand, a common practice in industries like hospitality and ride-sharing.
Even though this wasn't Tanner's intention, it caused a lot of commotion among Wendy’s customers.
Wendy's provided a clarification on what dynamic pricing means.
During the controversial call, Tanner referred to dynamic pricing as fluctuating prices that can go up or down.
On Feb. 27, Wendy’s issued a clarification regarding its CEO's statement, stating that they have no intention of implementing surge pricing and raising prices when customers visit. posted a clarification of what its chief executive was saying in the call. “We have no plans to do [surge pricing] and would not raise prices when our customers are visiting us most,” the statement says.
However, the announcement didn’t stop reputation-damaging rumors from spreading.
To Combat Negative Publicity, Wendy's Offers $1 Burgers
To improve its image, Wendy’s offered free Cinnabon Pull-Aparts, a variation of a classic cinnamon roll, during breakfast hours. on Leap Day during breakfast hours.
Then, it came up with an even better deal for March Madness. If you install the Wendy’s app, you can score a $1 Dave’s Single or a $2 Dave’s Double throughout the month and into April. The offer ends on April 10.
A Dave’s Single is a quarter-pound of beef with American cheese, tomato, lettuce, pickles, and onions. The Double has two patties, as the name suggests.
Wendy’s rewards members can use the deal once without any additional purchase. The chain will also offer additional discounts during the college basketball tournament.
Wendy's Plans To Use Digital Menu Boards
Wendy’s statement about its pricing also mentioned the use of digital menu boards in its U.S. restaurants for promotions and offers.
“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,” Wendy’s statement reads.
Other fast food chains have also used digital menu boards, so this doesn't imply anything nefarious. McDonald’s introduced menu boards in some locations in 2015.
The Chain Is Putting AI on the Menu
Wendy’s also plans to use AI to suggest changes on the digital menu boards it will implement next year.
The company hasn’t explained exactly how it will use AI, except to effect “menu changes and suggestive selling based on factors such as weather.”
The AI will take into account factors like outside temperature and inclement weather to suggest menu items such as Wendy's famous chili.
Burger King Took a Swing at Wendy's Dynamic Pricing Announcement
After Wendy’s dynamic pricing announcement was misunderstood in the media as “surge pricing,” Burger King mocked Wendy's by giving out free hamburgers from Burger King with a purchase of $3 or more from Feb. 28 to March 2.
Burger King said they don't charge more for hungry customers, making a clear reference to Wendy’s. They added, “It's a good thing the only thing increasing at BK is our flame!”
We'll need to see if the $1 burger can make Wendy’s fans forget about the fake surge pricing issue this March.
