Wendy's has recently clarified its stance on surge pricing for menu items following CEO Kirk Tanner's comments that sparked widespread reports and backlash. In a statement released on Tuesday, the company assured customers that they will not be implementing surge pricing, stating that it is not their practice to raise prices when demand is highest.

The controversy arose after Tanner mentioned during the company's fourth-quarter earnings call that they would begin testing dynamic pricing and daypart offerings as part of a $20 million investment to install digital menu boards at all US restaurants by 2025. This caused concerns that prices at Wendy's could fluctuate based on demand, similar to models seen at companies like Uber and Lyft.

Following the backlash on social media and inquiries from media outlets, Wendy's spokesperson, Heidi Schauer, clarified that the digital menu boards would focus on changing featured items more easily and offering discounts to customers, especially during slower times of the day. The company emphasized that any new features would be aimed at benefiting the customer.

In addition to the investment in digital menu boards, Wendy's is also spending $15 million this year to enhance its mobile app and loyalty program, with plans to increase global digital sales to $2 billion by 2024. The company is continuing to expand its AI-enabled drive-thru and aims to implement AI menu changes and suggestive selling based on factors like weather by 2025.

The announcement from Wendy's comes after concerns and confusion regarding the potential implementation of surge pricing for menu items. The company's commitment to offering discounts and value offers to customers, particularly during off-peak hours, reassures customers that Wendy's remains focused on providing a positive dining experience.

The development marks one of several technological advancements by Wendy's as they strive to become more tech-savvy in the competitive fast-food industry.