Wendy’s Is Rolling Out Uber-Style ‘Surge Pricing’ Next Year

Update: CNN reported that Wendy's new pricing plan is not "surge pricing." In a blog post on, the fast-food chain explained that its test of new menus with prices that change throughout the day is not meant to cost more for customers.

"This was misconstrued in some media reports as an intent to raise prices when demand is highest at our restaurants," the company statement read. "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."

CNN, wrote that surge pricing refers to dynamic pricing which is a way for businesses to charge more (or less) based on how many people want their products at any given time.

ORIGINAL POST BELOW:

Ordering food from Wendy's is about to get a bit complicated. In early February, Kirk Tanner, the new CEO and president of Wendy's, shared with analysts his various plans to increase company profits. This includes investing in digital menu boards that can display dynamic pricing that fluctuates throughout the day by 2025. Basically, your favorite Wendy's item could cost more, or less, depending on what time you order.

According to Nation's Restaurant News, Tanner said, "We are planning to invest approximately $20 million to roll out digital menu boards to all U.S. company-operated restaurants by the end of 2025." Tanner added that Wendy's will also invest an additional $10 million over two years to enhance its global system, help upsell other menu items, and improve order accuracy.

Food & Wine reported that beginning as early as 2025, Wendy's will begin testing more enhanced features like dynamic pricing and daypart offerings along with AI-enhanced menu changes and suggestive selling.

According to Investopedia, dynamic pricing allows companies to set variable pricing that can fluctuate up and down throughout the day, depending on demand. For example, "surge pricing" on your Uber app, is dynamic pricing.

Investopedia explained that "Businesses are able to change prices based on algorithms that take into account competitor pricing, supply, and demand, and other external factors in the market." They also mentioned that dynamic pricing is a common practice in several industries such as hospitality, travel, entertainment, retail, electricity, and public transport. "Each industry takes a slightly different approach to repricing based on its needs and the demand for the product," they added.

It seems risky, seeing that customers have many choices for food nowadays. So, customers can simply choose to go somewhere else if they're not a fan of the pricing at that time. On the other hand, rideshare companies are limited, and people are only given a few options.

But only time will tell if this concept will be successful for the fast food chain.

Lately, the subject of first dates occurring at chain restaurants has garnered significant attention. A recent survey asking women about their least preferred venues for first dates has ignited a debate on the internet. This list, which was shared on Instagram by @DuvalPromo, is reportedly the result of polling women to determine their least favored first-date locations.

Among the 28 establishments on the list are restaurant chains such as Applebee's, Chili's, and Denny's are featured. The top spot for the most unsuitable first date location is occupied by The Cheesecake Factory, followed by Applebee's, Chili's, Chipotle, and Olive Garden, rounding out the top five. It's worth noting that the list includes not only restaurants but also specific first-date situations, including "your house," family functions, a bar solely for drinks, and church.

Whether it's a first date or a casual meal, the question arises: Why do some people have reservations about restaurant chains?

According to Farm Credit Canada, a chain restaurant is defined as a business with four or more locations. These restaurants are typically large-scale operations with multiple branches, sometimes spanning different countries or continents.

The expansion of chain restaurants did not occur overnight. Many of them have humble origins in smaller, local establishments. For instance, the Cheesecake Factory, which currently operates over 300 restaurants in the U.S. and Canada, began as a small bakery in Detroit and eventually evolved into The Cheesecake Bakery in Los Angeles in 1972, according to their website. It wasn't until the late '90s and early 2000s that additional locations began to appear.

Critics often express their reservations about chain restaurants, and there are valid reasons for their concerns. Many people prefer supporting local businesses over large corporations, as chain restaurant food is often mass-produced and served uniformly across various locations. Dining exclusively at upscale or independent establishments offers a sense of social prestige, something to brag about, and the feeling of indulging in a unique experience. However, ultimately, it's all about eating a meal.

There's something comforting about knowing that, for the most part, you can find something familiar to eat at any time and almost anywhere. Maybe that's why singer Walker Hayes dedicated his song Fancy Like, to the simple joys of eating a chain like Applebee's. So, let's chat about some of the reasons people actually enjoy dining at chain restaurants.

One of the advantages of dining at a chain restaurant is the predictability that comes with it. Local, independent establishments can be more hit-or-miss, often offering a more limited menu selection, which makes them a riskier choice for a date or group outing. When you open the menu, you can expect to find the same menu items prepared and presented consistently. Chain restaurants usually follow uniform recipes and they use the same ingredients, equipment, and standardized training procedures. You can expect a consistent experience whether you're in one part of the country or another. Restaurant chains are like your reliable pals on a road trip. You spot their logo on an exit sign, and you know it's there. It's that simple convenience that makes chain restaurants a go-to option, no matter where you are.

For many people, chain restaurants served as the primary dining option simply because they were the most accessible. You know how the place will look, how the wait staff is dressed, and how you are expected to dress at chain restaurants, ensuring a familiar dining experience wherever you go. Many diners have a soft spot for the food we know and love. It's like a comforting experience. Chain restaurant grub often brings back memories of late-night munchies after Friday night football games, college hangouts, and road trips.

Chain restaurants tend to be easier on the wallet compared to standalone establishments with more specialized menus and daily chef's specials. Most of us keep an eye on our dining budget and wouldn't want to feel like we've emptied our pockets for a single meal. That's why diners appreciate restaurant chains with Happy Hour, Budget Menus, and Late-Night deals.

Many local places struggle to seat larger groups, especially if you've got more than four people in your party. Unless you've made a reservation or a special request, you might end up waiting a while for enough room to open up, regardless of the size of your party. Additionally, local establishments sometimes arrange tables in closer proximity to maximize their limited space. Not everyone's a fan of dining elbow-to-elbow with strangers and involuntarily eavesdropping on neighboring conversations throughout their meal.