Thursday, May 23

Wendy’s Plans to Introduce Dynamic Pricing

Associated media – Associated media

In adopting the pricing strategy, Wendy’s will join a number of other companies that have introduced dynamic pricing, often to the chagrin of customers.

Uber and Lyft, for example, charge more when demand outpaces the availability of cars on the road — during rush hour, for instance, or in bad weather. Concertgoers have also experienced dynamic pricing, with some Bruce Springsteen fans, for instance, finding that seats on Ticketmaster were costing upward of $5,500 when he returned to performing with his band after a yearslong hiatus.

Dynamic pricing has also been widely adopted in the commercial theater world, which has helped institutions that experienced losses to recover. But the variable prices could hurt new attendees, as they are likely the ones to be searching for tickets to a show at the last minute, when tickets become more expensive.

Many consumers have learned to take notice of changing prices. Before choosing where to eat, 81 percent of consumers check menu prices “always or often,” and half report noticing when restaurant prices have changed, according to a January 2023 survey of 901 U.S. consumers by Capterra, a company that connects businesses with software vendors.

Around 52 percent of those surveyed believed that dynamic pricing was price gouging, the Capterra survey said.

Linked media – Linked media