Dynamic surge pricing for Wendy’s

 [[{“value”:”“Beginning as early as 2025, we will begin testing more enhanced features like dynamic pricing and daypart offerings, along with AI-enabled menu changes and suggestive selling,” he said. “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
The post Dynamic surge pricing for Wendy’s appeared first on Marginal REVOLUTION.”}]] 

“Beginning as early as 2025, we will begin testing more enhanced features like dynamic pricing and daypart offerings, along with AI-enabled menu changes and suggestive selling,” he said. “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.”

Here is one story of many, remember USA Today?  (Should they not be the go-to source for a Wendy’s story?)

I predict this will fail.  For one thing, “we will have discounts for Tuesdays at 3 p.m.” would have been better marketing.  Furthermore, many Wendy’s buyers are not wealthy, and they care a good deal about predictable prices.  Perhaps the higher prices will stick in their memories more?  The pitch: “I know I can go to Wendy’s and get my favorite meal there for xxxx” is a powerful meme.  I don’t even know what those numbers for “xxxx” should be!  Which I guess is part of the point.

Update from Ryan Bourne: Wendy’s already has backed down.

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 Economics, Food and Drink, Uncategorized 


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