Wendy’s said it has no plans to raise menu prices based on demand after its CEO mentioned testing “dynamic pricing” in 2025.
Dynamic pricing refers to surge pricing during peak hours, similar to airlines and Uber.
The CEO’s comments sparked online backlash, with some vowing to hoard Frosty milkshakes for summer.
Senator Elizabeth Warren called it “price gouging.”
Wendy’s backtracked, saying it would not raise prices during peak customer visits and that digital menu boards would allow easier discounts instead.
The company claimed comments about dynamic pricing were misconstrued, as it has no plans to raise prices based on demand.
Restaurant analysts were also wary of the idea, saying customers would shop elsewhere.
Victor Fernandez, a senior analyst at restaurant analytics firm Black Box Intelligence. said, “I don’t see it taking off any time soon.”
Michael Lukianoff, CEO of SignalFlare.ai, predicted, “Customers will shop elsewhere.”
Sen. Warren’s post criticized dynamic pricing as price gouging that could raise lunch costs even if costs to the company remained the same.
Sen. Warren claimed that Wendy’s plan “means you could pay more for your lunch, even if the cost to Wendy’s stays exactly the same. It’s price gouging plain and simple, and American families have had enough.”
Wendy’s sales have slowed recently.
