Comments about the new digital menu board on Wendy’s earnings call quickly spiraled out of control on the internet, with consumers panicking that dynamic pricing would affect the price of their chicken sandwiches.
On February 15, Wendy’s CEO Kirk Tanner said that the chain is “developing AI-based menu changes and sales suggestions, as well as features such as dynamic pricing and time slots. announced a $20 million investment in a new digital menu board that will enable .
“We expect our digital menu boards to deliver immediate results in order accuracy, improved crew experience, and increased sales through upselling and consistent merchandising,” he added.
For those unfamiliar with the term, surge pricing is when the price of a product changes based on demand at a particular time. Also known as dynamic pricing, it is most commonly seen in airline tickets and ride sharing.
Advances in ordering technology are giving foodservice the opportunity to test dynamic pricing, automated prompts to upsell menu items, and even artificial intelligence (AI) in the drive-thru, Datassential customers say. Kelly Bailey Fechner, Director of Solutions, said at the 2022 Chicken Marketing Summit. .
internet rebellion
The internet immediately reacted to this statement. Let’s just say that the reaction was not positive.
“We don’t believe in charging more when you’re hungry,” said rival Burger King. X, formerly Twitter.
Another consumer approached the change as a day trader, debating whether to hold on “until the market recovers” or sell now.
Wendy’s revealed
Following internet backlash, the chain clarified its previous statement and denied plans to raise prices during periods of peak demand.
Wendy’s said in a blog post: “We have no plans to do so, and we do not intend to raise prices at a time when our customers are most likely to visit us.” “Any features we may test in the future will be designed to benefit our customers and restaurant staff.”
It’s all about messaging
What most consumers don’t realize is that surge pricing is probably already in use. Do you use an app to buy chicken at a restaurant or retail store? Your app may offer a different price than other apps. I’m looking for an older, non-tech based example. During happy hour, restaurants charge less for food to attract consumers when they are less busy.
Dynamic pricing can offer several benefits for food services. This reduces food waste and increases the ability to match customer demand with staffing needs.
But in a world where consumers are already tired of paying higher costs for food, messages about these changes will need to be carefully crafted. Wendy’s says they plan to use dynamic pricing to save consumers money on late-night visits, but why didn’t they take the lead in implementing it?
To learn more about consumer trends impacting the poultry industry, plan to attend the 2024 Chicken Marketing Summit to be held July 29-31, 2024 at Renaissance Birmingham Ross Bridge Golf Resort & Spa in Birmingham, AL Please stand up. The Kind Event looks forward to consumers in 2035 and the issues that will impact their protein choices.
For the first time, the summit will include two content tracks. As always, in one track he discusses today’s consumer trends and what he expects in 2035, and how advances in digital technology will impact future poultry sales and marketing. Focus. The second content track will help the industry meet consumer expectations by adapting new and existing technologies to raise and process broilers while using fewer resources and improving welfare, food safety, and convenience. We will explore how to respond to this.
Registration for the 2024 Chicken Marketing Summit is now open. For more information, please visit www.chickenmarketingsummit.com.
