Wendy’s Announces 'Dynamic Pricing' with Increased Menu Costs During Busy Hours

The fast food spot's surge pricing is similar to how ride-share apps like Uber increase prices during heightened demand

<p>Justin Sullivan/Getty</p> Wendy

Justin Sullivan/Getty

Wendy's plans to introduce surge pricing
  • Wendy's will start implementing “dynamic pricing” or surge pricing, which changes with demand, in 2025

  • The chain is investing in digital menu boards to make the fast-changing prices possible

  • A representative for Wendy's confirmed to PEOPLE that the prices will fluctuate based on factors like the weather

Wendy’s customers may face different prices depending on what time of day they go to the burger joint.

The fast food spot announced a plan to roll out “dynamic pricing” in 2025 during an earnings call in February.

Wendy’s new pricing model will be similar to how ride-sharing apps like Uber or Lyft bump up their prices during increased demand. Customers could be paying as much as $1 more for a Baconator during a peak time, like the lunch rush, according to a Good Morning America segment that aired on Tuesday.

In the earnings call, Wendy’s CEO Kirk Tanner explained that the chain will spend $20 million to add digital menu boards to restaurants. Tanner also specified that they will be spending $10 million over the next two years for digital menu board enhancements in international locations, per Nation’s Restaurant News.

These digitized menus, “AI-enabled menu changes and suggestive selling” will allow Wendy’s to implement pricing changes quickly during peak hours. A representative for Wendy’s also confirmed to PEOPLE that customers may notice lower prices during slower parts of the day.

“Historically, companies just set one price that was constant across time. Pricing algorithms allow companies to change prices throughout the day or perhaps even throughout an hour,” University of Michigan professor of economics Zach Brown told Good Morning America.

The Wendy’s representative added to PEOPLE that the chain is planning to test suggestive selling based on factors like the weather. They confirmed that Wendy’s is making investments in technology that will increase the flexibility of the menu.

Related: Krispy Kreme Is Giving Out a Dozen Glazed Donuts for $2.29 on Leap Day

The fast food restaurant has some deals ahead of the pricing model changes. On Feb. 29, Wendy’s is observing Leap Day with a sweet breakfast deal.

<p>Wendy's new Cinnabon pull-aparts</p>

Wendy's new Cinnabon pull-aparts

The brand’s new Cinnabon Pull-Aparts will be free for customers at Wendy’s restaurants during breakfast hours. Simply order in person, online or through the app.

Earlier this month, Wendy’s announced that they were upping their breakfast game by partnering with Cinnabon on the sweet morning treats. The new breakfast item is “Wendy's spin on a classic cinnamon roll while still upholding the familiarity of the product,” per a release at the time.

For more People news, make sure to sign up for our newsletter!

Read the original article on People.