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Wendy's planning 'surge prices' based on fluctuating demand

With the dynamic pricing model, the chain’s iconic Dave’s Single could increase by as much as $1 at lunchtime and drop down by the same amount after the lunch rush.

Wendy’s CEO Kirk Tanner announced the new system 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 without incurring additional overhead costs. Getty Images“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, who rose to the chief role earlier this month. An Uber user noted the ride-care company was trying to charge her more than $80 to commute 10 minutes to work during a rush-hour rainstorm last year.Franchise owners contend that dynamic pricing is more about helping with scheduling and easing the burden on kitchen staff during peak hours – as opposed to maximizing profits.

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