Like your train or plane tickets, paying more in case of high demand.
A burger from fast food chain Wendy's could cost more at peak times in 2025, a strategy called a "very bad idea" and risky by experts.
Kirk Tanner, boss of the fast-food chain since the beginning of February, wants to test several features enhanced with artificial intelligence such as changing menus on its new digital panels and suggestions for additions to customer orders, as well as higher prices during periods of high demand.
“A very bad idea” according to a marketer
“When people are hungry, they want to eat right away.
If the price is higher because it's rush hour, they're not going to wait for it to go down.
They will go to the competitor,” comments John Zhang, professor of marketing at the Wharton business school at the University of Pennsylvania.
The dynamic pricing that Wendy's wants to experiment with in a year "is a very bad idea," he thinks.
“Customers will find it unfair and unreasonable to pay more for the same product, they will be angry and leave, never to return,” warns the teacher.
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“The benefit for Wendy's will be to maximize its revenue and, perhaps, stimulate demand during off-peak periods” by encouraging consumers to avoid price peaks, adds Neil Saunders, director at GlobalData.
But, for him as for Professor Zhang, the best option would instead be to encourage customers to come during quieter periods by offering them discounts.
According to the 2024 report from the National Restaurant Association, 85% of adults surveyed said they would be willing to take advantage of discounts for dining on weekdays, when crowds are lower, while 84% would eat outside of hours. point out if there were any discounts.
The association points out that the catering industry has been juggling pricing dynamics for a long time, with special offers for early birds
or
“happy hours”.
“Wendy’s won’t be able to do it everywhere”
For Purvi Shah, lecturer at the Worcester Polytechnic Institute (WPI) School of Business, the crucial element is determining “demand elasticity”.
That is to say the extent of the additional cost that the consumer will accept before turning away from the brand.
Wendy's "is going to take a risk by counting on the reward."
“Wendy's won't be able to do it everywhere, only in places where there are no real alternatives,” notes the specialist.
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But we will have to be “transparent about the process and educate the consumer, otherwise they will find that it is unfair or suspicious”, explains Purvi Shah, emphasizing that with social networks, any misstep can be harshly and quickly punished.
This, according to her, is the mishap experienced by the British pub chain Slug and Lettuce in 2023 when it wanted to increase by twenty pennies (23 euro cents) the price of a pint of beer during public hours. point.
“The rejection was brutal on X”, formerly Twitter, she says.