Burger chain Wendy’s looking to test surge pricing at restaurants as early as next year

Wendy’s wants to test whether the prices of its menu items can fluctuate throughout the day based on demand, implementing a strategy that has already taken hold among ride-sharing companies and ticket sellers

Wendy’s wants to test whether the prices of its menu items can fluctuate throughout the day based on demand, implementing a strategy that has already taken hold among ride-sharing companies and ticket sellers.

During a conference call earlier this month, Wendy’s CEO Kirk Tanner said the Dublin, Ohio-based hamburger chain will test dynamic pricing, also known as surge pricing, as early as next year.

“As early as 2025, we will begin testing enhanced features such as dynamic pricing and part-day deals, along with AI-enabled menu changes and suggestive sales,” he said. “As we continue to demonstrate the benefits of this technology in our own restaurants, franchisee interest in digital menu boards should increase, further supporting sales and profit growth across the system.”

Wendy’s Co. plans to invest approximately $20 million to launch digital menu boards in all its U.S.-operated restaurants by the end of 2025. The company also plans to invest approximately $10 million over the next two years to support digital menu improvements globally.

Tanner, a longtime director of PepsiCo, became CEO of Wendy’s earlier this month. He succeeded Todd Penegor, who had served as president and CEO of Wendy’s since 2016.

Last year, Penegor announced a restructuring aimed at speeding up decision-making and investing more in the development of new restaurants, especially abroad. The chain and its franchisees operate approximately 7,000 restaurants worldwide.

Shares of Wendy’s fell slightly in trading Tuesday morning.