American fast-food giant Wendy's has faced criticism over its announcement to introduce dynamic pricing and AI menu features at its locations in 2025. Reports about the potential "surge pricing" test prompted a backlash online, with some calling for boycotts of the popular chain.

Responding to the uproar, Wendy's clarified that it does not intend to raise prices based on demand during peak hours. Instead, the company plans to offer discounted prices during slower times of the day. While this approach may still involve some form of dynamic pricing, Wendy's emphasized that it aims to provide an enhanced customer experience.

Wendy's CEO and president, Kirk Tanner, disclosed that the company will invest approximately $20 million to install digital menu boards capable of displaying real-time variable prices at its U.S. locations. An additional $10 million will be dedicated to enhancing Wendy's global system to improve order accuracy and promote additional menu items.

The initiative is part of Wendy's broader strategy to modernize its operations through technology and drive profits. This includes previous testing of FreshAI, an artificial intelligence system for handling orders, and plans for AI-enabled menu changes and suggestive selling based on factors such as weather conditions.

Dynamic pricing, a common practice in various industries, may present a new frontier in the fast-food sector. While some restaurants have tested this approach successfully, the response from Wendy's customers remains uncertain.

As Wendy's moves forward, questions arise about how dynamic pricing will impact food delivery services like Uber Eats and Doordash. It remains to be seen how these platforms will integrate with Wendy's dynamic pricing system.

In addition to its pricing strategy, Wendy's is also testing a new menu item called "Saucy Nuggets" at select locations near its Ohio headquarters. Notably, this menu addition does not involve artificial intelligence technology.