Wendy's Clarifies No Plans for Surge Pricing After Backlash
ICARO Media Group
Wendy's, a popular US burger chain with over 6,500 restaurants globally, faced controversy after investors were informed about plans to introduce dynamic pricing at its outlets through new digital menu displays. The term "dynamic pricing" involves rapidly changing posted prices and drew quick criticism, with accusations of "price gouging" being hurled at the fast-food giant. This sparked outrage online, causing customers to threaten taking their business elsewhere.
However, Wendy's swiftly responded to the backlash, clarifying that the purpose of the digital menu boards was to provide more flexibility in displaying featured items, with the intention to offer discounts during slower periods and not to raise prices during peak demand times. The company emphatically denied any plans to implement surge pricing, a strategy popularized by Uber and utilized by other industries like airlines and hotels.
The issue also caught the attention of left-wing Senator Elizabeth Warren, who criticized the potential move, asserting that it could result in customers paying higher prices despite the cost to Wendy's remaining the same. Wendy's reassurance that they do not intend to adopt surge pricing seems to have assuaged some of the concerns raised by critics, emphasizing that their aim is to provide customers with better options at their restaurants.