Wendy's to Test Demand-Based Pricing in 2023, Joining Growing Trend of Surge Pricing
-
Wendy's plans to test dynamic, demand-based pricing for menu items starting in 2023 to increase revenue. Prices could fluctuate lightly for items like chicken nuggets and Frostys.
-
Dynamic pricing is becoming more common, allowing companies to charge higher prices during peak demand. Airlines, hotels, and Uber already surge prices.
-
Online retailers like Amazon use algorithms and AI to frequently adjust prices based on competitor pricing, customer demand, and individual customer data.
-
While some price changes go unnoticed, consumers view sharp hikes as unfair, especially for staple goods. Backlash caused Coca-Cola to end temperature-based drink pricing.
-
Price-sensitive customers can use dynamic pricing to their advantage by purchasing during off-peak hours. But the model likely won't work for all businesses.