Wendy's retracts 'dynamic pricing' comments that sparked controversy online

WASHINGTON (TND) — It seems as if Wendy's is now walking back its comments on dynamic pricing that caused an online stir.

The CEO originally said in early February that the burger chain would start testing "dynamic pricing," also called surge pricing, as early 2025.

"Beginning as early as 2025, we will begin testing more enhanced features like dynamic pricing and daypart offerings along with AI-enabled menu changes and suggestive selling," CEO Kirk Tanner said during a call with investors.

Tanner added the company plans to invest around $20 million to roll out digital menu boards to all U.S. company-operated restaurants.

Dynamic pricing refers to a practice where companies set flexible prices on products or services that change, according to current market demand, Investopedia explains.

In an online statement, Wendy's saidit "would not raise prices when our customers are visiting us most."

"We said these menuboards would give us more flexibility to change the display of featured items. This was misconstrued in some media reports as an intent to raise prices when demand is highest ... We have no plans to do that," the company stated.

Wendy's posted a news update on its website Tuesday addressing the controversy but did not mention any type of pricing model.

"Earlier this month we issued our fourth quarter and full year 2023 earnings results and included an update on investments we are making in our digital business. One initiative is digital menuboards, which are being added to U.S. Company-operated restaurants. We said these menuboards would give us more flexibility to change the display of featured items. This was misconstrued in some media reports as an intent to raise prices when demand is highest at our restaurants. We have no plans to do that and would not raise prices when our customers are visiting us most. Any features we may test in the future would be designed to benefit our customers and restaurant crew members. Digital menuboards 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. Wendy’s has always been about providing high-quality food at a great value, and customers can continue to expect that from our brand."