North Dakotans May Be Forced To Pay More For A Burger Depending On Demand

In a strange capitalistic twist, a major burger franchise in North Dakota may fluctuate the price of a hamburger throughout the day as supply and demand fluctuate.

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According to a recent article from the New York Post, in a "Uber-style" surge-pricing approach, Wendy's plans to charge different amounts for different menu items depending on demand. For example, a Dave's burger might cost more during lunch or dinner rushes.

Americans, who are already feeling the pinch of inflation, may not have the luxury of eating during "off-peak" hours if the fast food chain's unsavory plans are put to the test in a high-stakes rollout next year.

During a conference call with investors, Wendy's CEO, Kirk Tanner, revealed the new system and mentioned that the Ohio-based firm will be investing $20 million in technological menu boards. These boards will have the capability to change prices in real-time without incurring additional overhead expenses.

The dynamic pricing strategy that Wendy's plans to implement in 2025 will cause prices to fluctuate throughout the day in response to demand; for example, during the lunch, dinner, and breakfast rushes, things will be more expensive.

In his new capacity as chief executive officer, Tanner stated, "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." This comes as no surprise, given that Tanner just assumed the position earlier this month.

Tanner didn't specify the base price or the maximum amount by which the dynamic pricing mechanism might raise the cost of a meal.

No one from Wendy's, which operates over 6,000 restaurants in the United States, would comment on the potential range of pricing changes.

To enable instantaneous price updates, Wendy's is investing $20 million in digital menu boards. Things like the famous Dave's Single already have different prices in different regions.

As an example, a quarter-pound burger from Dave's costs $5.99 at the Newark, NJ, location and $8.19 at the Times Square Wendy's.

During a call with investors earlier this month, Wendy's announced the approaching launch of their dynamic pricing scheme.

When Wendy's tries to woo price-conscious customers with constantly changing prices, experts say the fast food chain will face pushbacks.

According to data from consumer transparency portal PriceListo, Wendy's became the most expensive fast-food company in the US when menu expenses increased by 35% owing to inflation between 2022 and 2023.

Last year, a ride-sharing customer complained that Uber tried to charge her almost $80 for a 10-minute ride to work in a rainstorm during rush hour.
Instead of boosting profits, dynamic pricing, according to franchise owners, is more about helping with scheduling and reducing the workload for kitchen staff during peak hours.

After seeing the success that dynamic pricing has had in the airline, hotel, and transportation industries, the restaurant business has been discussing it for years. The experts agreed that Wendy's rivals will be watching Wendy's experiment very closely.