Wendy’s sets the record straight on surge pricing: ‘No plans to do that’

UPDATE: Wendy’s is setting the record straight after reports that it would introduce surge pricing, or pricing that fluctuates based on consumer demand.

In a Feb. 27 statement, the fast-food chain said its new digital menu boards will allow more “flexibility” to change the display of certain items.

“This was misconstrued in some media reports as an intent to raise prices when demand is highest at our restaurants,” a Wendy’s spokesperson told McClatchy News in a statement. “We have no plans to do that and would not raise prices when our customers are visiting us most.”

The clarification comes after company CEO Kirk Tanner said the burger chain planned to implement “enhanced features like dynamic pricing and day-part offerings” during a February earnings call.

The original story continues below.

Your go-to Wendy’s meal could soon cost more as the fast-food chain teases the arrival of dynamic pricing, or “surge” pricing, on its menu, multiple news outlets reported.

Some customers have beef with the change, however.

Wendy’s will begin testing the practice in early 2025, company CEO Kirk Tanner said on a recent earnings call, according to Business Insider. The roll out is a first for fast-food, where customers could see menu prices fluctuate depending on the time of day.

The move is part of a $20 million push to be more tech-savvy, with plans for new digital menu boards that change prices based on demand, CNN reported.

“In addition to evolving our loyalty program, one of the other benefits of these investments will be the flexibility to change the menu more easily and to offer discounts and value offers to our customers through innovations such as digital menuboards, which will roll out in some U.S. restaurants,” a Wendy’s spokesperson told McClatchy News in a statement.

It wasn’t long before fast-food lovers sounded off on the changes.

“I haven’t passed a Wendy’s with a line at the drive thru in years, it’s usually a guess to if it’s even open,” one user posted on X, formerly known as Twitter. “I love the baconator but I’m not playing guess the price ever.”

It’s not clear which menu items will be affected or how much more customers can expect to pay.

McClatchy News reached out to Wendy’s for more information Feb. 27 and was awaiting a response.

What’s surge pricing?

Wendy’s customers may want to rethink ordering during the lunch rush.

That is, if they don’t mind paying more.

“Surge pricing is directly linked to increases in demand,” Arnd Vomberg, a digital marketing professor at the University of Mannheim Business School in Germany, told the BBC last year. “In periods of high demand, the scarce goods are more valuable, and companies can increase their prices.”

The variable pricing model is new to the fast-food industry, though customers have likely encountered if they’ve hailed a ride through Lyft or Uber.

On its website, Uber notes that prices “surge” when there’s an uptick in ride requests. Inclement weather, special events and rush hour traffic may also drive up prices.

“Some riders will choose to pay, while some will choose to wait a few minutes to see if the rates go back down,” according to the company’s website.

In addition to changing prices, Wendy’s teased other changes including AI-enabled menus and technology that makes menu suggestions — like a Frosty on a hot summer day.

“Wendy’s has always been about providing high quality food at a great value to our customers and this recent investment will continue that by driving traffic and providing value during slower parts of the day,” the spokesperson said.

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