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

farquhar

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Jan 25, 2019
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https://www.bnnbloomberg.ca/burger-...t-restaurants-as-early-as-next-year-1.2039899

Wendy's is looking to test having the prices of its menu items fluctuate throughout the day based on demand, implementing a strategy that has already taken hold with ride-sharing companies and ticket sellers.

During a conference call earlier this month, Wendy's CEO Kirk Tanner said that the Dublin, Ohio-based burger chain will start testing dynamic pricing, also known as surge pricing, as early as next year.

“Beginning as early as 2025, we will begin testing more enhanced features like dynamic pricing and daypart offerings, along with AI-enabled menu changes and suggestive selling,” he said. “As we continue to show the benefit of this technology in our company-operated restaurants, franchisee interest in digital menu boards should increase, further supporting sales and profit growth across the system.”
Let me get this right....you are proposing to raise the menu prices during the morning, lunch, and dinner rush, when customers want to come to your restaurant? And drop the menu prices outside the rush hours?

How does this benefit the customer? And why shouldn't the customer just go to your competitor across the street who doesn't engage in this bullshit?

I don't know where this Kirk Tanner guy went to school, but he sounds like a fucking idiot. Hopefully the franchisees revolt against this harebrained scheme.
 

OpXXX

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Nov 21, 2023
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Not really dynamic pricing but it's already happening with DoorDash, Skip and I think even Uber. I've seen a +30% price difference on the same items comparing the restaurant menu to the delivery menu. On top of that, they charge delivery, and other fees. Still see a stream of deliveries at our lobby every night.
 

explorerzip

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Jul 27, 2006
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This is new for fast-food places, but not for most other restaurants. Many have similar if not identical food yet charge more during dinner hours. Mandarin Buffet has been doing this forever and also charges more during holidays.

The change will certainly turn off the regulars, but the occasional customers likely won't notice.
 

rhuarc29

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Apr 15, 2009
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This methodology is applied elsewhere, too. Like hydro. And obviously Uber. The idea is to reduce peak demand and inflate off-peak demand. Consistency is way more efficient. Staff won't be as overstressed, nor will their schedules be as erratic. Could save the company money too by reducing staff. And can make for a better customer experience by reducing waits.

I consider it a noble idea, but I have my doubts about its success. Unlike hydro, and to a lesser extent Uber, Wendy's has a ton of competition. What'll most likely happen isn't the intended shift of their customers from peak time to off-peak time, but rather from them to a competitor (during peak teams). This sort of thing normally only works properly in monopolies, or if the industry as a whole were to adopt it.
 
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NotADcotor

His most imperial galactic atheistic majesty.
Mar 8, 2017
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In theory it is a good idea, if you are at capacity that is, which... are they?
However it's annoying and as they said above, it will just push people somewhere else.

Now for things like the Don Valley Parking lot...

Annoying like small businesses that have a different closing time for almost every night. Instead of trying to keep track, fuck it, just stop going at all at night.
 

thumper18474

Well-known member
Oil Companies and gas stations have been doing it for years
Raise prices on Fridays
Drop on Mondays...during the summer and long weekends..
Although it never goes right back to pre increase rates
 
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xix

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Jul 27, 2002
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La la land
European idea. Trickles down to Central and South America.

There is a reason why I liked Canada 20 years ago and now they want to charge by the time and location.
 

Spunky1

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local Grocery store had a prepared hot food counter that would discount everything 50% about 20-30 minutes before store closing. What was happening was people in the know would start lingering around just waiting for the sign to go up and then rush the counter.
My guess is they thought it cheapened the image of the place. After they renovated they got rid of the discounts and probably just toss the food out.
 

Ceiling Cat

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Feb 25, 2009
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I would not support increased prices during peak hour, but if they lowered prices during off peak hours it would bring in more clients and they would increase their profit margins.
 

shack

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Oct 2, 2001
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At least you're not spending your time, gas or transit fare to get that product though.
It would be money better spent.

At least the restaurant wouldn't be giving away 40% to the delivery who then marks up the price, charges for delivery and asks 15% tip which the restaurant deserves more than they. And the food is hot and fresh instead of lukewarm and soggy. And the amount of garbage generated by all the conspicuous consumption needed to package everything. And if there's a problem with the order you can't send it back to the kitchen. And they pay the drivers peanuts.

Yeah, I'd pay for those things you mention 98% of the time.
 

explorerzip

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Jul 27, 2006
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It would be money better spent.

At least the restaurant wouldn't be giving away 40% to the delivery who then marks up the price, charges for delivery and asks 15% tip which the restaurant deserves more than they. And the food is hot and fresh instead of lukewarm and soggy. And the amount of garbage generated by all the conspicuous consumption needed to package everything. And if there's a problem with the order you can't send it back to the kitchen. And they pay the drivers peanuts.

Yeah, I'd pay for those things you mention 98% of the time.
Why is it money better spent when you're paying for the gas and wear and tear on your car?

I don't use Uber for food delivery especially for fast food, but it makes more financial sense to have someone else pay those car expenses instead of me.

The only place I get delivery from (and it's very rarely) is from a local pizza place that has their own cars.

How fresh is the food from a fast food joint really? It's been sitting in a warming tray even when you eat onsite.

The only difference in garbage between onsite versus delivery is the paper bag and the sticker that seals it. All other wrappers, cups, etc are the same.

I agree with your though that Uber is gouging restaurants and drivers and you can't send something back. I don't bother sending stuff back at fast food places unless it's serious like undercooked food. I'll do it at a sit down restaurant, but never fast food.
 

shack

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Oct 2, 2001
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Why is it money better spent when you're paying for the gas and wear and tear on your car?
1)To spite the delivery service for their gouging and the way they exploit the resto, the drivers and me. Why should they be rewarded for being predators?

2)I must have 25-30 restaurants within 2-3 km of me so I think the gas and wear and tear is negligible compared to the satisfaction of getting my food within seconds of when it's ready and I can immediately resolve any potential issues. And over time, the wear and tear could probably be less than the amount I'm getting overcharged for. Even if not, you can still subtract that amount from the gas/repair amount.

I don't use Uber for food delivery especially for fast food, but it makes more financial sense to have someone else pay those car expenses instead of me.
I especially don't use it for non-fast food which should be better quality than FF. That better quality, which I'm paying more for and expecting, is being taken away from me. I liken it to being at a restaurant and you see it sit under a heat lamp for 30-45 minutes before they bring it to my table. (Would you accept that?) And, I have to pay more for the privilege of waiting. I want to actually enjoy my meals hot and fresh instead of complaining under my breath that it's tepid and crispy dishes are now soggy. The quality of the product is very important to me.

And as I explained, for me, those travel expenses are negligible. If saving 100-200 kms. on a car that's going to rack up 150K is inconsequential I still think that the amount they gouge over time could actually be more than the wear and tear. I'd be surprised if it costs more than two bucks to drive there and back. I probably get gouged somewhere from $5-20 for each order of food.

The only place I get delivery from (and it's very rarely) is from a local pizza place that has their own cars.
Agree. Most pizza have their own dedicated drivers. I have a Thai place and Chinese place that are same. A dedicated driver will be on his way faster than a delivery service.

How fresh is the food from a fast food joint really? It's been sitting in a warming tray even when you eat onsite.
I ask my Popeyes to make the chicken and fries fresh for me. They never refuse and it takes 10-15 minutes tops, which is still less time than waiting for the heat lamp food from Uber and less money.
My veal and deli sandwiches are always made to order. They are steaming hot and I eat them on the premises. No dedicated driver means no order from me.

The only difference in garbage between onsite versus delivery is the paper bag and the sticker that seals it. All other wrappers, cups, etc are the same.
I will disagree. For Chinese and Thai each dish comes in a heavy duty paper container or plastic container and lids with each and those take up a lot of space in my garbage or recycling. Even forgetting the environment, it's more hassle and time for me to deal with.

I never order drinks because they're flat when you get them and I usually get liquids from the grocery store. You'll pay $3 for a can of pop that costs fifty cents at the store. More gouging.

I agree with your though that Uber is gouging restaurants and drivers and you can't send something back. I don't bother sending stuff back at fast food places unless it's serious like undercooked food. I'll do it at a sit down restaurant, but never fast food.
Different philosophies. Wherever and whatever you eat, you are paying for it and they are making a profit off you. You deserve to get what you are paying and should not be ashamed if it is below the quality you are expecting. I've read that by most food critics.

If you are willing to accept mediocrity, that's your choice and I'd never criticize you for your choice. I'm not. It was only because you asked, that I explained why I have my preference. Add up all the little things I mentioned and I feel that there's a big difference.
 

jalimon

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Jan 10, 2016
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local Grocery store had a prepared hot food counter that would discount everything 50% about 20-30 minutes before store closing. What was happening was people in the know would start lingering around just waiting for the sign to go up and then rush the counter.
My guess is they thought it cheapened the image of the place. After they renovated they got rid of the discounts and probably just toss the food out.
Just like Winners and other clothing store rip appart their unsold clothes before throwing them in the bin :(

Capitalism does not care at all about the poor.
 

Indiana

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Feb 23, 2010
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There’ll be no price drop. It’ll remain where it is for “non-surge” times, and increased for “surge “ times.
 

rhuarc29

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Apr 15, 2009
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Not only lazy but stupid. Paying more for an inferior product.
I think this depends, as there are pros and cons to each. Using DoorDash means you're paying more, and getting food that isn't fresh. However, you're saving time and transportation costs. Depending on how valuable your time is, it could make sense.

However, I do agree...I feel like most people use it not because of the value proposition, but simply because they're too lazy to cook or fetch the food themselves.
 
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