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

[Uncharted]

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.

That isn't the same thing at all.
These are buffets first and foremost, and they have more menu items during the dinner and holiday times. More food options at the buffet means higher prices.

So, not the same thing.
It's not even in the same ballpark.
In fact it isn't even the same sport.

 

[roddermac]

I wouldn't give them a dime for the poison they are passing as food anyways...

At least Wendy's is somewhat edible. Have you had McDonalds lately. I haven't touch it in almost 5 years. It worst than all the rest.

 

[roddermac]

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.

Never used any of them. I go and pick up my food myself.

 

[explorerzip]

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?

That's totally your choice. I was just talking about the apps being an option in specific circumstances like not having a car at all or it's in the shop. Though I grant you that are plenty of lazy people out there too. IMO, drive thru is the same. Most people do have time to sit down and eat at a fast food joint. If they truly don't have enough time that likely means they've jammed up their schedule too much. Not to mention that you stink up your car with fast food smell.

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.

Consider yourself lucky because I live in a restaurant desert. The only choices I have within 2-3km of me are Tim's, McD's, Pizza Pizza, 1 mediocre Chinese take out place and a fish and chips place. I have to drive at least 15 minutes for everything else.

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.

I would not know how long or if my food was sitting under a heat lamp before it got to me at a dine-in place. That will definitely happen at a fast food joint though. If delivery food is cooled down substantially or is soggy it means that it took extra long to get to you.

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.

As with everything, it depends. You live in an area that has lots of fast food and other restaurants. I don't have nearly as many options so delivery could make more sense even though I don't partake much.

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.

The thread is about Wendy's that uses paper / cardboard wrapped and paper bags just like all other fast food joints. Yes, many Chinese takeout places use plastic containers though some use styrofoam or heavy duty paper. I'm Asian so I'm just used to re-using the plastic boxes for bringing lunch to the office or other storage. Obviously, this is going to change as we get rid of single use plastics.

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.

Agreed. Soft drinks at restaurants are insanely over-priced sugar water. I bring my drink of choice from home in a water bottle.

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.

We are talking about fast food, which is already mediocre to begin with. I have low expectations at fast food places to begin with. Unless I come across undercooked, food I can't eat because of allergies (not an issue for me), something gross like a finger nail, etc. then I wouldn't bother to take something back. The cost difference between fast food items isn't enough for me to stand in line again.

 

[explorerzip]

That isn't the same thing at all.
These are buffets first and foremost, and they have more menu items during the dinner and holiday times. More food options at the buffet means higher prices.

So, not the same thing.
It's not even in the same ballpark.
In fact it isn't even the same sport.

There are extra choices at buffet places during dinner or holidays times, but not a whole lot especailly at Mandarin. Most of the choices are the same during lunch and dinner. IMO, it's not worth the 15 to 30% price premium at Mandarin at least.

 

[Uncharted]

There are extra choices at buffet places during dinner or holidays times, but not a whole lot especailly at Mandarin. Most of the choices are the same during lunch and dinner. IMO, it's not worth the 15 to 30% price premium at Mandarin at least.

I wasn't commenting on if the added food options at buffets warrant the amount of the price increase.

I was commenting on how this example isn't even remotely the same thing as surge pricing at Wendy's.
You're comparing Apples to Toyotas.

 

[Jubee]

This video is so good, it'll get its own thread, but I'll add it here.

 

[explorerzip]

I wasn't commenting on if the added food options at buffets warrant the amount of the price increase.

I was commenting on how this example isn't even remotely the same thing as surge pricing at Wendy's.
You're comparing Apples to Toyotas.

And I was commenting on if the added food options at buffets warrant the price increase. In the case of Mandarin, a 15 to 30% price premium between lunch and dinner isn't worth it for me because they can't increase the food choice by the same amount. There are places like Dragon Pearl that have crab legs, lobster, etc. but I can't possibly eat enough of them (nor would I want to) to warrant the extra cost. If I really wanted to have seafood, I would go to a dedicated restaurant vs a buffet.

As I said before, if you're a Wendy's regular then the changes will likely make you reconsider going there. I seldom go to Wendy's so the price premium doesn't affect me. If Wendy's was one of my only options like at a highway rest stop, then I'd have to suck up the higher prices.

If the food options are mostly the same at any restaurant between lunch and dinner, then it's similar to surge pricing. I do realize that there are details that don't make restaurants directly comparable though.

 

[Carvher]

This is weird in that they are breaking the cardinal rule of fast food.
Consistent product at consistent price.
Most of their customers aren't rich. I would think they will go to the competition.
I can just see McDonald's and Burger King advertising that they have consistent pricing.

 

[PeteOsborne]

For clarification, the CEO actually said " Beginning as early as 2025, we will begin testing more enhanced features like dynamic pricing and day-part offerings,"
This is in reference to the company's $20 million investment in new digital menu boards, and said the technology would empower Wendy's to experiment with a few novel strategies, including so-called dynamic pricing.
He was refrencing that the digital menus could allow the company to offer discounts to customers during slower times of day.
News media reported the opposite.
"To clarify, Wendy's will not implement surge pricing, which is the practice of raising prices when demand is highest," Wendy's Vice President Heidi Schauer said in an email to NPR. "We didn't use that phrase, nor do we plan to implement that practice."
"They talked about, for example, getting more breakfast customers in, they might actually reduce breakfast prices at certain times in order to encourage people to come during what they currently have as relatively low-demand periods."
https://www.npr.org/2024/02/28/1234412431/wendys-dynamic-surge-pricing

 

[Carvher]

For clarification, the CEO actually said " Beginning as early as 2025, we will begin testing more enhanced features like dynamic pricing and day-part offerings,"
This is in reference to the company's $20 million investment in new digital menu boards, and said the technology would empower Wendy's to experiment with a few novel strategies, including so-called dynamic pricing.
He was refrencing that the digital menus could allow the company to offer discounts to customers during slower times of day.
News media reported the opposite.
"To clarify, Wendy's will not implement surge pricing, which is the practice of raising prices when demand is highest," Wendy's Vice President Heidi Schauer said in an email to NPR. "We didn't use that phrase, nor do we plan to implement that practice."
"They talked about, for example, getting more breakfast customers in, they might actually reduce breakfast prices at certain times in order to encourage people to come during what they currently have as relatively low-demand periods."
https://www.npr.org/2024/02/28/1234412431/wendys-dynamic-surge-pricing

So the media got this wrong?
What a surprise

 

[Uncharted]

And I was commenting on if the added food options at buffets warrant the price increase. In the case of Mandarin, a 15 to 30% price premium between lunch and dinner isn't worth it for me because they can't increase the food choice by the same amount. There are places like Dragon Pearl that have crab legs, lobster, etc. but I can't possibly eat enough of them (nor would I want to) to warrant the extra cost. If I really wanted to have seafood, I would go to a dedicated restaurant vs a buffet.

As I said before, if you're a Wendy's regular then the changes will likely make you reconsider going there. I seldom go to Wendy's so the price premium doesn't affect me. If Wendy's was one of my only options like at a highway rest stop, then I'd have to suck up the higher prices.

If the food options are mostly the same at any restaurant between lunch and dinner, then it's similar to surge pricing. I do realize that there are details that don't make restaurants directly comparable though.

No.

You said how the described surge pricing had been done before in non fast food restaurants, and then offered what Mandarin does between their different Lunch, Dinner and Holiday Menus as proof.
Which isn't surge pricing at all, and isn't even close. No matter how many times you repeat it. A different menu from one time of day to another, with different menu options in a buffet setting is nothing like surge pricing.
And what other non Buffet restaurant changes the menu prices between lunch and dinner?
They may have lunch menus, but those items are usually smaller portions for lunch than at dinner. Which is why the price is lower for those lunch items.
Again nothing like surge pricing.

If your going to make comparisons, at least try to keep the one thing in the same solar system as the other thing.

 

[PeteOsborne]

So the media got this wrong?
What a surprise

Yup, they misinterpreted his words, finding alot of that with the lack of investigative journalism being practised these days.
Here is a transcript of the conference call meeting with what he actually said.
https://www.fool.com/earnings/call-.../wendys-wen-q4-2023-earnings-call-transcript/
Yahoo has even gone so far as to say that they will be using AI to alter pricing based on demand, weather and promotions which is no where near what he said.
https://ca.finance.yahoo.com/video/wendys-ai-surge-pricing-222025478.html

 

[explorerzip]

No.

You said how the described surge pricing had been done before in non fast food restaurants, and then offered what Mandarin does between their different Lunch, Dinner and Holiday Menus as proof.
Which isn't surge pricing at all, and isn't even close. No matter how many times you repeat it. A different menu from one time of day to another, with different menu options in a buffet setting is nothing like surge pricing.
And what other non Buffet restaurant changes the menu prices between lunch and dinner?
They may have lunch menus, but those items are usually smaller portions for lunch than at dinner. Which is why the price is lower for those lunch items.
Again nothing like surge pricing.

If your going to make comparisons, at least try to keep the one thing in the same solar system as the other thing.

Never mind then, you win. Are you happy with yourself now?

 

[shack]

Wendy’s Makes It Clear After Backlash: No Surge Pricing (msn.com)

 

[basketcase]

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.

I'm sure someone else would have pointed out that that price increase is because delivery services change restaurants a significant amount and that's where the price difference comes in.

I understand surge pricing for uber as there is a limited number of drivers and they are theoretically independent contractors able to bid up users (not that I buy the argument). With sports, the secondary market makes a killing on high-demand games so the stadium getting in on it is reasonable. The idea of a fast food place doing it is pure profiteering. If they had an elite tier service that meant you didn't have to wait, it may get some takers but as it was, it was just taking advantage of people with fixed lunch or dinner breaks.

 

[Ceiling Cat]

Wendy's announcement that they may introduce surge pricing may have had the opposite effect on their prices. If there are less clients and less demand, the prices should be reduced not increased. McDonald's has introduced mechanization into their burger cooking to reduce the time and labor it takes to put the burger on the counter. In recent times the world has seen inflation, deflation often takes place after these times. Society as a whole are still somewhat comfortable financially, probably due to massive stimulus the governments have provided over the last several years. I believe that we are already seeing reduced spending on luxury and non necessity goods and services. There has been big increases in house prices, higher interest cost in mortgages and higher rent cost for tenants. On the job market I believe many businesses that have not closed are working with less staff or closer to bankruptcy than they have ever been before. I suspect we are on the verge of deflation. The food banks are getting more people in need and less food donations. The job market does not look so bad because there are less people looking for work, but as jobs get scarce the 50 year old will not hesitate to take the $15 an hour job at the supermarket stocking vegetables or standing at a counter saying "would you like fries with that"?

If Wendy's is attempting to introduce surge pricing, they are trying to make the public believe that there is such a great demand for their products that they can increase prices at will. In fact fast food places has increased their prices at a time when the buying public has less money to spend. In regular times fast food places have advertised specialty time limited, reduced price food items to bring the public in. the lower prices are offset by increased volume as well as increasing popularity of the brand. This is a form of anti surge pricing that work in good and bad times

 

[somjay]

This basically an economics of scarcity. More customers + same number of low-paid staff = worse service and longer waiting times. I'd make myself scarce by going elsewhere.

 

[Zipperpants]

Buy low sell high!!

 

[superstar_88]

do not buy low and sell lower