Wendy's
If you see a line forming at Wendy's, you might want to try again in a couple of hours.
That's because Wendy's is going to start surge pricing its menu items by 2025 as it rolls out digital menus, according to its fourth-quarter earnings call.
That means your go-to order may get more expensive — or cheaper — depending on the time of day you go.
The new pricing model is a first for the fast-food industry. But it's a familiar concept to those who use ride-share apps. Similar to pricing models at Uber and Lyft, Wendy's menu items will fluctuate in price depending on demand during the time that you order.
For example, Wendy's Baconator burger currently goes for $9.79. But with surge pricing in place, that might increase if you order it at 6 p.m. during an evening rush.
Wendy's did not respond to a request for comment about which items would be affected or how much the prices would vary.
The fast-food chain will spend $20 million to install digital menu boards at all its US restaurants by 2025. The menu boards will make it easier to change the menu and will offer discounts and value offers to customers, a Wendy's spokesperson told Business Insider.
The company will invest another $10 million over the next two years to upgrade digital menu boards around the world, Wendy's CEO Kirk Tanner said on the earnings call.
"We expect our digital menu boards will drive immediate benefits," he said.
The change marks one of several strides the company is taking to become more tech-savvy.
Wendy's will spend $15 million in 2024 to enhance its mobile app experience and loyalty program. The company expects global digital sales to reach $2 billion by 2024, which is a year earlier than planned, Tanner said.
Wendy's will also keep expanding its AI-enabled drive-thru, which it launched in June. The company plans to implement AI menu changes and suggestive selling based on factors like weather by 2025, according to a statement provided to BI.
