Everything is getting so expensive these days, and unfortunately, that includes fast food.
The days of going to your favorite drive thru and snagging multiple items off the dollar menu are dead and gone.
Even beloved fast food chains like In-N-Out–who have always been known for their affordable menu–have raised their prices in recent years.
Sure, fast food isn’t the healthiest…
But it used to be a convenient and cheap way to get a meal when you were short on time.
Now, the drive thru might still be a quicker option, but it’s probably nearly as expensive as any other place you might hit up for lunch.
Sadly, it doesn’t seem like that trend is stopping any time soon, especially after a recent announcement from a popular fast food chain.
A new business model…
It was announced this week that Wendy’s is preparing to test an “Uber-style” surge-pricing model at their restaurants.
The cost of menu items will fluctuate throughout the day based on demand
That means the price of a Dave’s burger or some nuggets will cost more during the lunch or dinner rush.
Wendy’s CEO Kirk Tanner announced the new approach on a call with investors, noting the Ohio-based company will invest $20 million on high-tech menu boards that will be able to update prices in real-time.
“As we continue to show the benefit of this technology in our company-operated restaurants, franchisee interest in digital menu boards should increase further supporting sales and profit growth across the system,” said Tanner.
Tanner didn’t put a ceiling on how much the dynamic pricing model could spike the cost of a meal or whether the base price would actually fall during slower periods.
Representatives for Wendy’s would not say how much prices could fluctuate.
“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,” a Wendy’s spokesperson told The Post.
Prices on items, like the Dave’s Single, already vary depending on location.
According to the outlet, a Dave’s Single costs $5.99 at an outpost in Newark, NJ, while that same burger costs $8.19 at a Wendy’s in Times Square.
Still, industry experts have warned that Wendy’s should expect backlash when it tries to hit up hungry diners with prices that continue to change.
“It won’t fly and guests will be very upset,” restaurant consultant Arlene Spiegel said. “You can’t surprise a guest with, ‘Your meal will cost another 50 cents or $1 today.’”
According to data from consumer transparency platform PriceListo, Wendy’s is already the most expensive fast-food chain in the US after menu costs rose 35% due to inflation between 2022 and 2023.
On the contrary to all of the backlash, franchise owners insist that dynamic pricing is more about helping with scheduling and easing the burden on kitchen staff during peak hours–not maximizing profits.
“Generationally, I think we’re seeing this being acceptable.”
“I think there’s a lot of room for consumers in terms of price amounts they’re going to accept,” Faizan Khan, a Dog Haus franchise owner, said at the recent Restaurant Finance and Development Conference, according to Food & Wine.
The restaurant industry has been interested in testing dynamic pricing for years after witnessing the success of the airline, hotel, and transportation industries.
According to experts, competitors like McDonalds and Burger King will keep a close eye on Wendy’s experiment.
“I think it’s just a matter of time before it becomes commonplace in the restaurant industry because it’s a way to generate more profits by being smarter about your pricing,” restaurant analyst Mark Kalinowski told The Post.