FROM WENDY'S WONDERING,
IS THIS COMING FOR YOUR BURGER
NEXT?
THE LATEST BACONATOR ISN'T THE
ONLY NEW ITEM HITTING THE MENU.
PLANNING TO TEST OUT DYNAMIC
PRICING AS EARLY AS 2025.
IT IS A PRACTICE THAT CHARGES
DIFFERENT PRICES FOR THE SAME
ITEMS BASED ON DEMAND THROUGHOUT
THE DAY.
FOR EXAMPLE, A CHEESEBURGER AND
FRIES COULD COST YOU MORE DURING
THE LUNCH RUSH THAN DURING A
DIFFERENT PERIOD.
WENDY'S CEO KIRK TANNER SAYS HIS
COMPANY WILL INVEST $20 MILLION
ON DIGITAL MENU BOARDS, ALLOWING
CUSTOMERS TO SEE THE UPDATED
PRICES.
>> BEGINNING IN EARLY AS 2025,
WE WILL BEGIN TESTING MORE
ENHANCED FEATURES LIKE DYNAMIC
PRICING ALONG WITH AI ENABLED
MENU PRICES AND SUGGESTED
SELLING.
>> Reporter: FAST FOOD
RESTAURANTS ALREADY DEALING WITH
BLOWBACK FROM THEIR CUSTOMERS AS
STORIES OF $18 BIG MACs WENT
VIRAL.
>> I DON'T THINK ANYONE WILL PAY
EXTRA FOR THE EXACT SAME THING
THEY WERE GETTING FOR LESS.
>> Reporter: IN FACT, ONE SURVEY
FINDING 36% OF CONSUMERS WOULD
ORDER LESS OFTEN FROM
RESTAURANTS ADOPTING THE
PRACTICE.
YOU HAVE TO BE REALLY CAREFUL
ABOUT ANGRY CONSUMERS THAT ARE
ALREADY INFLATION WARY.
>> THAT MADE THE INDUSTRY
HESITANT TO DIVE IN.
THERE ARE RISKS INVOLVED, AND
THEY REALLY DON'T WANT TO ANGER
CUSTOMERS.
>> Reporter: BUT THESE DRAMA.
>> WE SPENT $899 PER TICKET.
DYNAMIC PRICING IS THE WORST!
>> Reporter: AND RIDE SHARES
LIKE LYFT AND UBER NOTORIOUSLY
FACED BACKLASH WHEN RIDERS SEE
UNEXPECTED COSTS.
>> USING UBER IS LIKE $8, $10.
TONIGHT IT WAS LIKE
$50-SOMETHING.
LITTLE DID I KNOW ABOUT SURGE
PRICE.
>> Reporter: BUT EXPERTS SAY
THIS IS A RARE MOVE FROM THE
FAST FOOD INDUSTRY, WHICH HAS
BEEN HESITANT TO SINK ITS TEETH
INTO VARYING PRICES.
>> IT'S REALLY GOING TO DEPEND
ON HOW CUSTOMERS REACT.
IF CUSTOMERS ARE OKAY WITH IT,
YOU WILL SEE MORE OF IT.
IF WENDY'S TEST DOESN'T WORK FOR
WHATEVER REASON, YOU MIGHT NOT
SEE THAT IT OFTEN.
>> Reporter: WE REACHED OUT TO
WENDY'S.
THEY SAID IT CAN ALLOW WENDY'S
TO BE COMPETITIVE AND FLEXIBLE
WITH PRICING, MOTIVATE CUSTOMERS
TO VISIT AND PROVIDE THEM WITH
THE FOOD THEY LOVE AT A GREAT
VALUE.
>> EH.
>> IT LEAVES A BAD TASTE IN YOUR
MOUTH.
>> IT FEELS LIKE WE'RE
CONSTANTLY BEING TAKEN ADVANTAGE
OF AS CUSTOMERS.
IS IT REASONABLE TO BELIEVE THAT
IF WENDY'S DOES THIS, THEN
EVERYONE ELSE WILL FOLLOW SUIT?
>> IT IS A TEST THAT BEGINNING
IN 2025.
KFC SAYS IT HAS NO PLANS AT THIS
TIME TO TRY DYNAMIC PRICING ON
ITS MENU.
THE FAST FOOD INDUSTRY HAS BEEN
RETICENT TO DO THIS IN THE PAST.
WE WILL SEE IF THESE NEW MENU
BOARDS -- LOOK, IF THE BURGER IS
CHEAPER LATER IN THE DAY, THAT
MIGHT ENTICE ME, TO BE HONEST.
>> IF YOU WORK A SHIFT AND YOUR
LUNCH HOUR IS BETWEEN 12:00 AND
1:00, AND YOU JUST HAVE TIME TO
GRAB A BURGER AND THAT'S WHEN
THE PRICE IS HIGHEST, THAT WOULD
BE INCREDIBLY FRUSTRATING.
>> I DON'T LIKE IT.
>> I DON'T THINK OF FAST FOOD
LIKE AN AIRLINE TICKET.
I DON'T.
THAT'S THE SAME KIND OF MODEL.
>> THANKS.