Is Wendy’s About to Revolutionize Fast Food with Dynamic Pricing?
Wendy’s: Pioneering a New Era of Variable Pricing in Fast Food
The Strategy Shift in Visiting Wendy’s
In the near future, choosing the perfect time to grab a meal at Wendy’s could be more than just about avoiding the lunchtime rush—it might also mean snagging the best price. The fast food giant is setting the stage for a groundbreaking shift in how it offers its menu items to customers.
Digitalisation and Dynamic Pricing
Kirk Tanner, Wendy’s new helmsman, recently unveiled plans during an analyst briefing that the company will be channeling funds into the adoption of digital menu boards that can showcase prices that change throughout the day. A considerable $20 million is earmarked to furnish all company-run U.S. restaurants with these boards by the year 2025.
Investing in a Smarter System
But Wendy’s ambition doesn’t end there; the chain is poised to inject an extra $10 million over the next couple of years to augment its global operations. This investment will bolster menu upselling, refine order precision, and support other initiatives that could revolutionize the customer experience.
Advanced Features on the Horizon
Wendy’s spokesperson confirmed with media that tests will soon commence for an array of advanced features on these new digital platforms, such as adaptive pricing, tailored offerings depending on the time of day, as well as predictive selling informed by various factors like the current weather.
What is Dynamic Pricing?
But what exactly is dynamic pricing? Simply put, it’s a flexible pricing strategy that allows prices to rise and fall based on demand at different times. This strategy is already prevalent across various industries, from hospitality to public transport, where prices are adjusted in response to numerous market factors.
Why Dynamic Pricing Matters for Wendy’s
With this model, a Wendy’s hamburger might fetch a premium during the peak hours and be more affordable during slower times, offering customers attractive prices that could boost sales and manage congestion. Other dining outlets are also watching this trend, gauging its viability for wider adoption in the restaurant sector.
Prospects and Challenges
Wendy’s leap into variable pricing is a gutsy move that, if successful, may enhance efficiency and profitability. However, it also comes with the risk of customer pushback due to their multiple dining choices. Positive outcomes in some fast-casual tests point to an openness amongst consumers to accommodate such a pricing model, potentially easing the load on staff during high-traffic periods and furnishing diners with more control over their spending.
Enhancing All-Day Appeal
A beyond-dynamic-pricing effort, Tanner has also highlighted Wendy’s plans to expand its breakfast offerings, supported by a robust $55 million advertising campaign. This push aims to ratchet up breakfast sales by 50% in the two years to come, which might also bring enticing price deals for early risers.
As the fast food landscape evolves, so do the strategies employed by chains like Wendy’s to attract and retain customers. Only time will tell if this bold move will set a new standard in the industry or if it will need further tweaking to align with consumer expectations.
