Wendy's to try "Dynamic Pricing"

[Pat Germain]

So did CBS news get it wrong? Because their report used the words "so-called dynamic pricing — also known as surge pricing" per the OP. Maybe they will offer discount pricing when traffic is low to try and attract more business but if no one knows when the discounts are in effect they will be mmmm ineffective. Better to just advertise discount prices when historically traffic is low and donate the $20 million in products to local foodbanks and get the benefits of the goodwill.

It wasn't just CBS. A lot of news outlets reported the same thing. What is still up in the air is if the CEO's comments weren't clear or if Wendy's simply panicked and backtracked based on extreme, negative reaction from the public.

[Steve Wurster]

Dynamic pricing isn't new. It's standard practice for airline tickets, hotel prices, lots of retail things, and of course rideshare companies (Uber, Lyft). This might just be the first time it's been talked about for food. That being said, this take on it is hilarious:
wendys.jpg

[andrew whicker]

So did CBS news get it wrong? Because their report used the words "so-called dynamic pricing — also known as surge pricing" per the OP. Maybe they will offer discount pricing when traffic is low to try and attract more business but if no one knows when the discounts are in effect they will be mmmm ineffective. Better to just advertise discount prices when historically traffic is low and donate the $20 million in products to local foodbanks and get the benefits of the goodwill.

I'm thinking the same thing. If the nominal price is the max price okay. Makes sense. However the customers will need an app to keep track or maybe Google maps.

But let's be honest, who trusts any mega corp? This will be another way to sneakily increase prices for them. They can then use the extra profit margin to lobby against workers and taxes.

Very American version of win win.

[Derek Meyer]

There is an article on Ars Technica today about Wendy's pricing plans. They clarified that they do NOT plan on raising prices during peak hours.

https://arstechnica.com/information-...emand-weather/

Time of day price variation is common at lots of eateries. Think happy hour or late night discounts. It sounds to me like Wendy's is trying to take it to the next level to make these adjustments based on other factors. Weather could easily affect foot traffic in their stores, so lowering prices during bad weather would be a way to entice more customers to visit during those times.

Derek

[roger wiegand]

Added motivation to not eat in fast food joints sounds like a real win for consumers, both from a financial and health point of view. We quit about 25 years ago, haven't missed it a bit. Eat much more delicious food now, and saved a small fortune in the process.

[Stan Calow]

I dont think it's an inherently evil or greedy thing to suggest. Let the marketplace decide.

[Doug Garson]

It wasn't just CBS. A lot of news outlets reported the same thing. What is still up in the air is if the CEO's comments weren't clear or if Wendy's simply panicked and backtracked based on extreme, negative reaction from the public.

I pick door number 2, panicked when they saw the negative public reaction.

[Edward Weber]

Most places that use this tactic/marketing strategy, don't announce it ahead of time.
Better to find out now and avoid all the backlash

[Steve Demuth]

Most places that use this tactic/marketing strategy, don't announce it ahead of time.
Better to find out now and avoid all the backlash

I think it's a particularly tough thing to implement in a place like a fast food counter - from day one, you're going to have people standing in line when the price on the board changes, and that's NOT going to go over well. Can imagine being the counter manager?

On the other hand, we're probably not far from fully automated fast food joints becoming the norm, where there will be no body to complain to - only person in the joint will be behind closed doors managing and maintaining the machines.

[Steve Demuth]

I had the same experience with the Taco Bell kiosks. I'm not a fan of the "Taco Hell", but Mrs. Pat likes it sometimes. I'm an IT guy and, the first time I tried to use the kiosk, I got nowhere. It just kept erroring out. Luckily, there was a young person behind the counter who could take my order. That person was busy because absolutely nobody could get any of those kiosks to work. I went back a second time months later. Same story. Why were those stupid kiosks even powered on? They served as a time-waster and nothing more.

We spent millions at the clinic where I last worked installing self check in kiosks at every desk. The theory is that patients will have their clinic app on their smart phone with their itinerary on it, and can check in at each desk as they go through the lab, radiology, various specialties, for each appointment without nurses help. Lots and lots of patients struggled with the kiosk check in.

I would put that down to the fact that patients tend to be old people and sick people with things other than kiosks and smart phones on their mind, but then I had to help my wife through the whole rigamarole, as she was diagnosed and treated for leukemia. I was the Chief Technology Officer for the whole hospital / clinic system, and the damned things defeated me more than once.

In the end, at one department after another, the clinic had to move one of the nurses from behind the check-in desk to a mini-desk beside the kiosk, to check patients in, because the kiosks defeated so many of us. I think after some years, it now actually yields some efficiency and patient satisfaction improvement, but it was a struggle.

[Bruce Page]

We spent millions at the clinic where I last worked installing self check in kiosks at every desk. The theory is that patients will have their clinic app on their smart phone with their itinerary on it, and can check in at each desk as they go through the lab, radiology, various specialties, for each appointment without nurses help. Lots and lots of patients struggled with the kiosk check in.

I would put that down to the fact that patients tend to be old people and sick people with things other than kiosks and smart phones on their mind, but then I had to help my wife through the whole rigamarole, as she was diagnosed and treated for leukemia. I was the Chief Technology Officer for the whole hospital / clinic system, and the damned things defeated me more than once.

In the end, at one department after another, the clinic had to move one of the nurses from behind the check-in desk to a mini-desk beside the kiosk, to check patients in, because the kiosks defeated so many of us. I think after some years, it now actually yields some efficiency and patient satisfaction improvement, but it was a struggle.

The medical complex I go to has 8-10 self-check-in kiosks. At the far end of them is a warm body. That’s where I check in.

[Sam Force]

Our local Steak n Shakes have all went to using kiosks for ordering. Instead of a restaurant full of customers and probably 12-15 employees they now have maybe 6 customers and 3-4 employees. We use to go at least once a week, some weeks twice. Now not at all, keep wondering when they will go back to the old way of business or close the door. They had hired local high school employees for years, now just a couple cooks and a "assistant manager" sad to see the chain of restaurants close as they cannot keep going at this pace

[Keith Westfall]

They must have thought there was a buck or two it, 20 million investment is not a small thing. If they can invest that much and still make money, I'm probably not getting any kind of a deal....

Can't remember the last time I ate at Wendy's, and won't now for sure.

Last time I went to MD, the food tasted terrible. Wasn't sure if t was the food or my body rejecting it, as I don't eat at any of them anymore...

[Monte Milanuk]

Local corner convenience store recently went through and removed all the prices on individual items - soda, candy bars, chips, whatever. You only get the total price when they ring you up at the counter.

Haven't been back since.

[Rich Engelhardt]

I pick door number 2, panicked when they saw the negative public reaction.

I'll pick door number three.
I'm thinking this came as a surprise to the franchisees

The OP article said:
""As we continue to show the benefit of this technology in our company-operated restaurants, franchisee interest in digital menu boards should increase""