Yes, Wendy’s is planning to implement dynamic pricing in 2025

EDITOR’S NOTE: Wendy’s released a statement clarifying it is not planning to implement surge pricing in 2025 as part of the company’s “dynamic pricing” plans which made national headlines. This story has been updated to reflect that clarification.

In late February, multiple news reports claimed popular fast-food chain Wendy’s plans to roll out a “dynamic pricing model,” which is often referred to as surge pricing, at its restaurants in 2025.

Surge pricing happens when a company raises its prices when customer demand is high. This is a strategy that has already taken hold with ride-sharing companies, such as Uber and Lyft, and ticket sellers like Ticketmaster.

As the news circulated online, several people on social media wondered if Wendy’s is really planning to implement dynamic or surge pricing at its restaurants next year.

We VERIFY what Wendy’s dynamic pricing plan will look like for customers. 

THE QUESTION

Is Wendy’s planning to implement dynamic pricing in 2025?

THE SOURCES

• Wendy’s
• The Wendy's Company Q4 2023 Earnings Conference Call and Presentation 
• Kirk Tanner, Wendy’s president and CEO
• Heidi Schauer, Wendy’s vice president of communications, public affairs and customer care
• Arlene Spiegel, restaurant, retail, food service consultant and president of Arlene Spiegel & Associates in New York City

THE ANSWER

Yes, Wendy’s is planning to implement dynamic pricing in 2025.

WHAT WE FOUND

Wendy’s confirmed it plans to roll out dynamic pricing as early as 2025. However, the company says it is not planning to increase prices during the busiest times at its restaurants and will not implement surge pricing.

“To clarify, Wendy’s will not implement surge pricing, which is the practice of raising prices when demand is highest,” Wendy’s spokesperson Heidi Schauer told VERIFY. “We didn’t use that phrase, nor do we plan to implement that practice.”

During a Feb. 15 Q4 earnings call and presentation, Wendy’s president and CEO Kirk Tanner told investors about the company’s dynamic pricing plans. Dynamic pricing is widely known as “the quick rise or drop in prices based on demand.”

“Beginning as early as 2025, we will begin testing more enhanced features like dynamic pricing and daypart offerings along with A.I.-enabled menu changes and suggestive selling,” Tanner said.

He also said Wendy’s plans to invest approximately $20 million to launch digital menu boards that will allow restaurants to change prices on the fly at all of its U.S. locations by the end of 2025. The company also plans to spend $10 million over the next two years to support digital menu enhancements globally.

Restaurant consultant Arlene Spiegel isn’t sure about this strategy for Wendy’s.

“From a consumer standpoint, I think people right now are very, very aware of pricing. People are still hurting because of inflation,” she said. 

After facing backlash online, Wendy’s clarified in a Feb. 27 statement that their dynamic pricing strategy would not raise prices but only lower them when demand is down, which “would be designed to benefit our customers and restaurant crew members.”

“Digital menu boards could allow us to change the menu offerings at different times of day and offer discounts and value offers to our customers more easily, particularly in the slower times of day,” the company said. “Wendy’s has always been about providing high-quality food at a great value, and customers can continue to expect that from our brand.”

The company is already using its own Wendy’s FreshAI automated drive-thru ordering system at some of its restaurant locations. In 2023, a TikTok user showed how the AI-enabled menu works in the drive-thru.

The Associated Press contributed to this report.