Wendy's to Invest $20 Million to Pilot Dynamic Pricing by 2025

Dynamic pricing is a tried-by-fire fix in the ride-hailing business. Wendy's intends to spend $20 million implementing digital menus by 2025 so that burgers can also follow dynamic pricing.

Founded by American Dave Thomas in Ohio in 1969, Wendy's is represented by "Wendy," a mascot fashioned after Wendy Thomas, daughter. Wendy's has regularly ranked as either the second or third biggest hamburger fast-food brand worldwide in recent years.

Wendy's CEO Kirk Tanner told investors on an earnings call earlier this month that the firm will spend $20 million on digital menus, which may change product prices depending on real-time demand.

Tanner said, "We intend to start testing dynamic pricing and other advanced capabilities as early as 2025. By the end of 2025, we want to have digital menu boards rolled out across all of the U.S. company-operated restaurants with an estimated $20 million expenditure."

For ride-hailing customers, dynamic pricing works since, although understanding that rates are higher during peak periods, they still require a ride and will push the "pay" button after some reluctance.

Imagine yourself standing in line to get a Wendy's burger. The menu displays the present burger price—$4. The burger cost goes to $4.20 when you advance one position forward.

The line shifts once more; today the price is $4.40. Ahead of you still remain five clients. What action should you take? Would you keep waiting or would you change restaurants?