Wendy’s Going With AI and Surge Pricing? How This Could Actually Save You Money
Written by
Dawn Allcot
Edited by
Cory Dudak
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Fast-food burger chain Wendy’s recently announced it would introduce new dynamic menu boards powered by AI. One feature of the new technology is the ability for Wendy’s to set prices based on the time of day, weather and other factors. Some news sources interpreted this to mean that Wendy’s would hike prices at lunch- and dinner-time hours.
“As early as 2025, we plan to test a number of features such as AI-enabled menu changes and suggestive selling based on factors, such as weather, that we think will provide great value and an improved customer and crew experience,” CBSNews reported, based on an email from a Wendy’s spokesperson.
The model isn’t new, but it is uncommon in the fast-food industry. Airlines have used dynamic pricing for decades. Likewise, rideshare company Uber uses surge pricing to hike fares when demand is high, such as during rush hour.
But Wendy’s assured CBS News reporters, via email, that the chain has no intention to hike prices based on demand. “We have no plans to do that and would not raise prices when our customers are visiting us most,” the spokesperson stated in the email. Rather, Wendy’s stated, “We said these menuboards would give us more flexibility to change the display of featured items.”
According to the spokesperson, the move would also allow Wendy’s to provide value during slower parts of the day. It might, perhaps, suggest a Frosty as a late-night snack on a hot summer evening — and offer a discount for the purchase.
Whether the chain stands by its word after the $20 million roll-out of AI-enabled menu boards remains to be seen.
For consumers, understanding how dynamic pricing works can help you save money by shopping at off-peak times. Similar to the way people can leverage low-cost airfare by timing their purchases, you may be able to use the Wendy’s app to find the best deals at different times of the day.
The AI-enabled menu boards could also use suggestive selling to try to push popular items. It’s the 21st century equivalent of the cashier asking, “Would you like fries with that?”
To save money, have your order — and your budget — in mind before you approach the counter or drive-thru so you won’t be tempted by that cool chocolate-y goodness of a Frosty with your burger.
More From GOBankingRates
