(Photo by Kena Betancur/VIEWpress)
Wendy's is trying to clean up the messaging surrounding its controversial plan to implement AI-backed "dynamic pricing," saying it’ll only be used to offer discounts — not to hike up prices.
The announcement prompted comparisons to surge pricing on Uber, which jacks up prices during peak traffic times. In a Tuesday statement, Wendy’s says the company plans on installing digital menu boards across its restaurants, but it will not gouge customers with shifting prices.
“This was misconstrued in some media reports as an intent to raise prices when demand is highest at our restaurants,” Wendy’s said. “We have no plans to do that and would not raise prices when our customers are visiting us most.”
The company added: “Digital menu boards could allow us to change the menu offerings at different times of day and offer discounts and value offers to our customers more easily, particularly in the slower times of day. Wendy’s has always been about providing high-quality food at a great value, and customers can continue to expect that from our brand."
To be fair, Wendy’s never said it would raise prices. Instead, the company’s CEO said in an earnings call earlier this month that "beginning as early as 2025, we will begin testing more enhanced features like dynamic pricing and day-part offerings along with AI-enabled menu changes and suggestive selling.”
Still, the statement was vague enough to raise the possibility that Wendy’s could both increase and decrease prices throughout the day. It didn’t help that the fast food chain later told Food & Wine: “Dynamic pricing 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.”
But it looks like Wendy’s is taking any such surge pricing off the table following backlash from the public. Even US Senator Elizabeth Warren (D-Mass.) weighed in, tweeting: "Wendy’s is planning to try out ‘surge pricing’ — that means you could pay more for your lunch, even if the cost to Wendy’s stays exactly the same. It’s price gouging plain and simple, and American families have had enough.”