Surge pricing, where companies increase prices as demand goes up in real-time, is becoming more common.
The new digital menu boards have dynamic pricing capabilities that can change prices depending on demand throughout the day.
Wendy's is experimenting with dynamic pricing to stay competitive and flexible.
Wendy's is planning to experiment with dynamic pricing, which will allow the company to be competitive and flexible with pricing. The new digital menu boards that are being rolled out in some U.S. restaurants have dynamic pricing capabilities, meaning they can change prices depending on demand throughout the day.
The practice of surge pricing, where companies increase prices as demand goes up in real-time, is becoming more common and Wendy's is following suit with this trend. The company plans to test more enhanced features like dynamic pricing and daypart offerings along with AI-enabled menu changes and suggestive selling.
The CEO of Wendy's, Kirk Tanner, has stated that the new digital menus will drive immediate benefits to order accuracy, improve crew experience and sales growth from upselling. However, he also clarified that there are no plans to raise prices during peak demand. Instead, the company is looking at ways to change menu offerings at different times of day and offer discounts.
Surge pricing has been used in other industries such as sports tickets and ride-hailing apps where sophisticated dynamic pricing algorithms change minute by minute based on demand. However, it's not yet clear how Wendy's will implement this practice or what specific changes they will make to their menu offerings.
Overall, the introduction of dynamic pricing is a significant move for Wendy's and could have a major impact on the fast food industry as a whole. It remains to be seen whether other companies will follow suit and adopt similar practices.
Wendy's is planning to experiment with dynamic pricing.
The company will not implement surge pricing.
Accuracy
Wendy's is introducing Uber-style 'Surge Pricing'
Dynamic pricing will allow Wendy's to be competitive and flexible with pricing
The practice, known as dynamic pricing, will begin testing in 2025
Few details were released about the change but Wendy's CEO Kirk Tanner said it will let the fast food chain test enhanced features like day-part offerings and AI-enabled menu changes and suggestive selling.
Surge pricing is common with sports and concert tickets, ride-hailing apps, but there hasn't been widespread adoption from restaurants because of labor it takes employees to change menus
McDonald's has also dabbled with dynamic pricing and new order-suggestion capabilities at some of its upgraded drive-thrus and on its app
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(85%)
The article contains an example of a false dilemma fallacy. The author presents the idea that Wendy's is either planning to implement surge pricing or not implementing it, when in reality there are other options available such as dynamic pricing without raising prices during peak times.
>Wendy’s will begin testing more enhanced features like dynamic pricing and day-part offerings<br>The hubbub came in response to comments made by Kirk Tanner, the fast food chain's president and CEO, during a Feb. 15 earnings call.
To clarify, Wendy’s will not implement surge pricing.
Bias
(85%)
The article reports that Wendy's is planning to experiment with dynamic pricing. The author cites a statement from the company's CEO stating that they will begin testing enhanced features like dynamic pricing and day-part offerings in 2025. However, after news outlets ran stories warning that Wendy's was planning to hike prices during the busier times of day, company executives tried to better explain what Tanner meant. The article also mentions other industries such as airlines and ride-hailing apps like Uber which use surge pricing. However, it is important to note that dynamic pricing is not the same as surge pricing and Wendy's has stated that they will not implement surge pricing.
The company said Tuesday that it’s planning to experiment with dynamic pricing.
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Conflicts
Of
Interest (0%)
Joe Hernandez has a conflict of interest on the topic of surge pricing as Wendy's is investing $20 million in new digital menu boards and he reports that they are not planning to introduce surge pricing.
Author
Conflicts
Of
Interest (0%)
The author has a conflict of interest on the topic of surge pricing as they are reporting on Wendy's and their plans to introduce dynamic pricing. The article also mentions Kirk Tanner who is an executive at Wendy's.
Dynamic pricing will allow Wendy's to be competitive and flexible with pricing
Beginning as early as 2025, Wendy's will begin testing more enhanced features like dynamic pricing and daypart offerings along with AI-enabled menu changes and suggestive selling.
Wendy's is investing $20 million to roll out digital menu boards by 2025, which will have dynamic pricing capabilities.
Accuracy
Dynamic pricing allows companies to set variable pricing that can fluctuate up or down throughout the day based on demand.
The company will not implement surge pricing.
Deception
(50%)
The article is deceptive in that it presents dynamic pricing as a positive development for Wendy's and its customers. However, the reality of surge pricing on Uber shows how this practice can be exploitative and harmful to consumers. The article also fails to disclose any sources or provide evidence supporting the claim that dynamic pricing will lead to increased profits.
The article states that Wendy's plans to implement dynamic pricing, but it does not explain what surge pricing is or how it works.
Fallacies
(85%)
The article discusses Wendy's plans to implement dynamic pricing on their digital menu boards. This is an example of a formal fallacy known as 'appeals to authority'. The author cites the CEO and president of Wendy's, Kirk Tanner, as stating that they will begin testing more enhanced features like dynamic pricing in 2025. However, this statement alone does not necessarily mean that dynamic pricing is an effective or ethical business practice. Additionally, the article mentions other fast-casual spots have tested the method and seen positive results but it doesn't provide any evidence to support these claims.
Wendy's plans to implement dynamic pricing on their digital menu boards.
Bias
(85%)
The article discusses Wendy's plans to implement dynamic pricing on their digital menu boards. This is a form of bias as it suggests that the company will be raising prices based on demand and supply rather than providing consistent value for customers. The use of algorithms to determine price changes also raises concerns about transparency and fairness in pricing.
The article mentions that the company will be testing a variety of enhanced features including AI-enabled menu changes and suggestive selling based on factors such as weather.
Wendy's plans to implement dynamic pricing on their digital menu boards
Site
Conflicts
Of
Interest (50%)
There are multiple examples of conflicts of interest found in the article. Wendy's has invested $20 million in their digital business and is rolling out digital menu boards in some U.S. restaurants, which could lead to a financial gain for the company if they increase prices or offer promotions based on demand.
digital menu boards are being rolled out in some U.S. restaurants
Wendy's has invested $20 million in their digital business
Dynamic pricing is part of a $20 million investment in new digital menu boards at its US restaurants
Surge pricing could be a turning point in the industry, according to Jonathan Maze, editor-in-chief of trade publication Restaurant Business.
Wendy's expects digital order sales to reach $2 billion this year and is spending $15 million to upgrade its app.
Accuracy
Wendy's is planning to experiment with dynamic pricing.
The company will not implement surge pricing, which raises prices when demand is highest.
Deception
(30%)
The article is deceptive in several ways. Firstly, the headline claims that Wendy's will test new menus that change prices throughout the day. However, this statement is not supported by any information provided in the body of the article. In fact, Wendy's CEO clarifies that dynamic pricing will include new menus that could offer discounts at slower times of the day and denies raising prices during peak demand.
The headline claims that Wendy's will test new menus that change prices throughout the day. However, this statement is not supported by any information provided in the body of the article.
Fallacies
(100%)
None Found At Time Of
Publication
Bias
(80%)
The article discusses Wendy's plans to introduce dynamic pricing on its menu. This is a form of bias because it implies that the prices will fluctuate based on demand and time of day, which could be perceived as unfair or unethical by some consumers.
Surge pricing is common with sports and concert tickets and for ride-hailing apps, but there hasn't been widespread adoption from restaurants because of the labor it takes employees to change menus.
The practice, known as “dynamic pricing,” will begin testing in 2025, Wendy’s recently revealed in an earnings call.
Wendy’s CEO Kirk Tanner said the new menus will let the fast food chain test “more enhanced features like dynamic pricing and day-part offerings along with AI-enabled menu changes and suggestive selling.”
]Wendy’s Frosty could soon fluctuate throughout the day[
Site
Conflicts
Of
Interest (50%)
Jordan Valinsky has a conflict of interest on the topic of Wendy's dynamic pricing and Uber-like surge pricing as he is an employee at CNN which received $20 million investment in new digital menu boards that enable them to change prices depending on demand.
Author
Conflicts
Of
Interest (50%)
Jordan Valinsky has a conflict of interest on the topics of Wendy's and dynamic pricing. He is an employee at CNN which received $20 million investment in new digital menu boards that enable them to change prices depending on demand.
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