Wendy’s has announced a new plan to change its menu prices depending on what time of day customers visit.
PEOPLE reported that the fast food chain announced its “dynamic pricing” plan that will start in 2025 during an earnings call this month.
Wendy’s new pricing model is similar to ride-sharing apps Uber or Lyft, which both increase their prices during increased demand. Customers could be paying as much as $1 more for Wendy’s popular Baconator during peak times, like lunchtime.
Wendy’s CEO Kirk Tanner confirmed that the company will spend $20 million to add digital menu boards to its restaurants. Tanner also specified that they will spend $10 million over the next two years on digital menu board enhancements in international locations.
These digitized menus, “AI-enabled menu changes and suggestive selling,” will allow Wendy’s to implement pricing changes quickly during peak hours. Menu prices may also go down in costs, a representative told PEOPLE. Customers may notice lower prices during slower parts of the day.
The Wendy’s rep added that the chain is planning to test suggestive selling based on factors like the weather and that the chain is making investments in technology that will increase the flexibility of the menu.
