Think about ready in line at your native Wendy’s drive-thru through the lunch rush, solely to drag as much as the menu board and notice that the spicy rooster nuggets you’ve been craving all day will price you a greenback additional. That nightmare could quickly grow to be a actuality, as a result of Wendy’s plans on testing surge pricing that may improve the worth of its spicy nuggets, burgers, Frostys, and different favorites throughout its busiest instances.
Throughout an earnings name earlier this month, Wendy’s CEO Kirk Tanner mentioned the quick meals chain plans on investing $20 million to roll out digital menu boards to US-based eating places by the top of 2025. As a part of the change, Wendy’s will even introduce one thing known as “dynamic costs” that may change the costs on the digital menu boards based mostly on demand. It sounds much like the surge pricing system carried out by Uber, which costs riders larger charges in busy areas.
“Starting as early as 2025, we’ll start testing extra enhanced options like dynamic pricing and day-part choices together with AI-enabled menu modifications and suggestive promoting,” Tanner says. “As we proceed to point out the good thing about this expertise in our company-operated eating places, franchisee curiosity in digital menu boards ought to improve additional supporting gross sales and revenue progress throughout the system.”
The Verge reached out to Wendy’s for extra details about dynamic pricing however didn’t instantly hear again.
And as famous in that quote above, dynamic pricing isn’t the solely guess Wendy’s is making on expertise. Final yr, Wendy’s began testing an AI chatbot at a drive-thru in Columbus, Ohio, and bragged that it didn’t want human intervention round 86 p.c of the time. Now, Tanner says Wendy’s has already rolled out its AI drive-thru assistant in a number of different eating places and has seen “ongoing enchancment in velocity and accuracy.”
There’s additionally the “AI-enabled menu modifications and suggestive promoting.” It’s unclear what meaning. It might be so simple as “It’s 11pm and I do know you’re simply right here for a Frosty earlier than mattress” or “We seen lots of people minimize the lettuce on the spicy rooster sandwich — would you want that, too?” Both means, it is going to seemingly seem alongside surge pricing and an AI chatbot that will get it proper 86 p.c of the time.
I, for one, don’t like the concept of my Frosty Cream Chilly Brew and Breakfast Baconator getting a worth hike through the morning rush. I would simply have to start out driving down the street for a McCafe and an Egg McMuffin as a substitute.