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𝙒𝙀𝙉𝘿𝙔'𝙎 𝙐𝙉𝘿𝙀𝙍 𝙁𝙄𝙍𝙀 𝙁𝙊𝙍 𝙋𝙍𝙊𝙋𝙊𝙎𝙄𝙉𝙂 𝙏𝙊 𝙄𝙉𝙏𝙍𝙊𝘿𝙐𝘾𝙀 𝘿𝙔𝙉𝘼𝙈𝙄𝘾 𝙋𝙍𝙄𝘾𝙄𝙉𝙂 𝙈𝙊𝘿𝙀𝙇 𝙒𝙃𝙄𝘾𝙃 𝙈𝘼𝙔 𝙄𝙉𝘾𝙇𝙐𝘿𝙀 𝙎𝙐𝙍𝙂𝙀 𝙋𝙍𝙄𝘾𝙄𝙉𝙂 (𝙃𝙄𝙂𝙃𝙀𝙍 𝙋𝙍𝙄𝘾𝙀, 𝙒𝙃𝙀𝙉 𝘿𝙀𝙈𝘼𝙉𝘿 𝙄𝙎 𝙃𝙄𝙂𝙃) Wendy’s CEO Kirk Tanner announced that the company will invest about $20 million into digital menus at all U.S. company-operated restaurants and begin testing dynamic pricing by 2025. Dynamic pricing is described as “product pricing based on various external factors, including current market demand, the season, supply changes and price bounding,” Price bounding is when a retailer or in this case a quick service restaurant like Wendy's knows that customers will not pay more than a certain price for a product. The store's buying team then negotiates with suppliers to ensure they can sell below this limit and still make a profit Companies like Target, Walmart, Amazon and Uber have implemented dynamic pricing. Airlines and hotels use dynamic pricing price their tickets where prices rise during peak holiday seasons or for those who are looking for a last minute booking in a packed plane or hotel. However, consumers expressed their disapproval of the plans, especially fearing that Wendy's will use surge pricing which is where prices automatically rise as demand rise. As such lunch menus will be more expensive at lunch time and would be cheaper at other times. Cold drinks will be more expensive on hot days when many people order cold drinks With outrage on social media and mainstream media picking it up, Wendy’s is now clarifying the company’s future plans. The company said that any features it decides to test in the future “would be designed to benefit our customers and restaurant crew members.” “Wendy’s will not implement surge pricing, which is the practice of raising prices when demand is highest. We didn’t use that phrase, nor do we plan to implement that practice,” the company said in an email to press on Wednesday.

In Wendy’s fourth quarter earnings update, they announced they will be rolling out new digital menu boards at its fast-food locations to have more flexibility in changing the display of featured items. Some of this information has been misinterpreted in media reports claiming that they will incorporating surge pricing during peak hours which is not factual. Wendy’s said in a statement: “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 menu boards 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.” Dynamic pricing is an enhanced pricing strategy without resorting to surge pricing tactics. By focusing on dynamic pricing without surge pricing, Wendy’s is aiming to provide customers with fair and transparent pricing while also maximizing revenue and customer satisfaction. This enables them to offer different items on their boards that are more popular, for example, depending on weather or time of day. This approach could represent a shift towards more personalized and responsive pricing models in the fast-food sector and create a new trend for the food service industry as a whole. It will be interesting to see how these boards function in real time and create a win-win for both the customer and Wendy’s fast-food chain. To read more, click the link below. #commercialrealestate #retail #tampabay #dynamicpricing #shoppingcenters

Restaurants continue to innovate using digital technology to drive customer experience and to make operational processes more efficient. The fast-food drive through as we know it has changed and the ability to make real time adjustments to offerings is now the current norm. Changes to the drive through are meant to increase speed, to make ordering easier for the customer and to create a more streamlined process. How fast is fast? Did you know the 2023 average total time spent in a drive thru lane was approx. 5.43 mins?

Why Quick Service Restaurant (#QSR) chains should break free from 𝘀𝗼𝗹𝗲 𝗿𝗲𝗹𝗶𝗮𝗻𝗰𝗲 on third-party delivery platforms: 𝗕𝗿𝗮𝗻𝗱𝗶𝗻𝗴 𝗕𝗿𝗶𝗹𝗹𝗶𝗮𝗻𝗰𝗲: Don't let it get lost in the crowd! 🌟 When customers order exclusively through third-party apps, your unique branding takes a backseat. Embrace direct online ordering to showcase your brand, tell your story, and foster a lasting connection that goes beyond the meal. 𝗗𝗮𝘁𝗮 𝗗𝘆𝗻𝗮𝗺𝗼: Data is gold in today's business landscape. 💡📊 Third-party platforms often hold onto valuable customer data, leaving you in the dark about preferences and behaviors. By having your own ordering system, you're the data master, tailoring offers and experiences that resonate. 𝗖𝗼𝘀𝘁 𝗖𝗼𝗻𝘁𝗿𝗼𝗹: Let's talk dollars and cents! 💰 While third-party platforms offer convenience, they often charge substantial fees that can eat into your profits. With your own ordering system, you regain control over costs and pricing, ensuring a healthier bottom line. Third-party delivery platforms do help maximize exposure, but it's only when combined with direct online channels that you will be running a truly profitable operation. 👀 Check out our latest whitepaper to find the most strategic choice to increase online revenue and bcoming more profitable: https://lnkd.in/ew_vZbZB Let's chat about finding that perfect balance! 🤝🚀 #qsr #restaurant #delivery #online

Wendy's is embarking on an interesting experiment with surge pricing #pricing #surgepricing #wendys #fastfood 📝 Highlights from the article Wendy's plans to introduce dynamic pricing, much like Uber and Lyft, as it rolls out digital menus to all its US restaurants by 2025. This means that menu items such as burgers and Frosties will fluctuate, costing more during increased demand. Wendy's says that dynamic pricing will allow discounts at slow hours, but 52% of consumers believe it's equivalent to price gouging, according to a Capterra survey. Wendy's is investing $20m in rolling out digital menus to its US restaurants by 2025. 💡 Advantages: ➡️ Dynamic Pricing: Similar to ride-sharing companies like Uber, Wendy’s surge pricing allows them to adjust menu prices based on demand, time, and location. This flexibility can help maximize profits during peak hours or in high-demand areas. ➡️ Real-Time Updates: With digital menu boards, Wendy’s can update prices in real-time, ensuring accuracy and responsiveness to market conditions. ➡️ Customization: Different menu offers during specific parts of the day allow Wendy’s to cater to varying customer preferences and optimize sales. 💡 Pitfalls: ➡️ Customer Perception: Surge pricing might be perceived negatively by customers accustomed to fixed menu prices. Some may find it frustrating or unfair. ➡️ Complexity: Implementing dynamic pricing requires sophisticated systems and algorithms. If not executed properly, it could lead to confusion or errors. ➡️ Risk of Backlash: If surge pricing leads to significantly higher prices during busy times, it could alienate loyal customers and affect the brand's reputation.

There has been mixed feedback on ‘dynamic’ or ‘surge’ pricing in recent weeks. Most notably with Wendy’s rolling it out and rolling it back. Framing is everything - calling anything ‘surge’ related to pricing is going to drum up negative emotions 😡 This isn’t new - restaurants have been dynamically pricing for decades. Happy hours, lunch deals, early-birds call it what you want but adjusting pricing downward to drive demand in quiet day parts is common. What’s not common is pushing pricing upwards in day parts where you are trading at maximum capacity. This is where framing matters most 🖼️ The unlock here is technology - the tech is arriving to adjust prices automatically based on demand, input cost changes and marketing campaigns. It’s going to get to a place where there is no ‘real’ menu price rather a range of pricing 📱 🍔 This is how it should be - particular with respect to input costs. All business need to react to changes in COGs to ensure the health of their unit economics - restaurants should be no different 📊 Customers will get used to it and embrace it, the same way they are now know if they go at Happy Hour they get a ‘better deal’ than at peak dinner time on a Friday night. Once we don’t call it surge pricing it’ll all be ok 😰 #restaurant #pricing

Wow, this was quick. For those following, Wendy’s announced they were going to invest in digital menus to drive profit, change menu items, and allow for dynamic pricing. They are now indicating their intent was never to raise prices during busy times. Whatever there intent was, it appears the negative feedback has made them publicly indicate they won’t be raising prices. Dynamic pricing is definitely something certain industries use (hotels, airlines, events, movie theaters, ride share, etc), but other industries have gotten a lot of backlash when trying it. This is exactly the reason why many companies/industries use promotions to offer discounts during less busy times instead. This works because customers know they will get a better deal if they come during non-peak hours/days, but don’t expect to pay higher than normal prices during busy times. Additionally, the discount they received is transparent and they knew the promotion beforehand so had an incentive to come. When companies offer discounts, they are relying on increased traffic/volume to offset the margin rate erosion. With dynamic pricing, a customer doesn’t know the savings beforehand, thus, customers would have little incentive to come during non-peak times with the hope the company had cheaper prices.

Fixed Pricing vs Dynamic Pricing - which is more appropriate for the QSR Consumer?! You may have noticed the recent war of words discussing the above as highlighted in this article by Reuters! If this is the first time you have heard about #DynamicPricing then look no further than your last hotel or flight booking experience. (I'm guessing that was painful and I apologize for the traumatic memory) The method the price of a room or a hotel is determined is called dynamic pricing and is why a flight price booked a day or maybe even an hour earlier can vary dramatically! The Wendy's Company and Kirk Tanner recently made headlines with a comment about Dynamic Pricing possibilities in restaurants on their latest earnings call and to be blunt, it went over like a lead balloon in the court of public opinion. Various professionals are now talking about how dynamic pricing is already employed in Restaurants via happy hour or discounting. This is disingenuous in my opinion. Discounting is not the same philosophy as Dynamic Pricing and as we know, words matter. Dynamic Pricing implies that prices will be dictated and fluctuate according to demand. I would argue for more "fixed supply" industries like airlines and hotels this pricing strategy makes sense and is understood and tolerated by the consumer. (not popular but tolerated) For QSR Restaurants though, I am firmly opposed to Dynamic Pricing for a few reasons. 1) There is no "fixed supply" issue like with airlines or hotel rooms. As a result it ends up effectively charging based on demand only. Imagine your Milk costing more or less because more people were in the grocery store for example. I would argue QSR Chains are much closer to the Grocery Store and C-Store Consumer in behavior patters than Casual Dining or Fine Dining Restaurants. 2)Consumers are very SMART despite what many company's think and you better believe they will notice when their regular order for a family of 5 varies +/- by 15%. 3) Dynamic Pricing mechanisms already happen - but it happens between the commodity suppliers and QSR's! Beef prices for example, for a QSR will vary based on the demand and availability for that commodity. The QSR is the party that is responsible for bearing the pricing implications on their margins and you better believe they raise prices periodically on the menu to protect their margins. (Thank you inflation....) Dynamic Pricing for QSR's does not fit with the DNA of what a QSR is supposed to be. Fast, Affordable, and Consistent. If consumers feel like you are no longer Affordable and Consistent...you better rethink your strategy FAST! Sincerely, Someone who appreciates a consistently priced burger! P.S. Kroger don't get any ideas from my milk example!

🍽️ Unlocking the Secrets of Discounts in the Restaurant Business 🍔 In the restaurant industry, discounts have been a go-to strategy for attracting customers and driving business growth. But are discounts really the silver bullet they're often perceived to be? In our latest article, we delve into the nuanced relationship between discounts, business success, and customer perception. We'll explore the fine line between using discounts to attract and over-relying on them at the expense of long-term profitability. 💡 Key Takeaways: 🔸 The role of discounts in brand discovery 🔸 Why discounts alone can't sustain a business 🔸 Learning from the challenges faced by big brands 🔸 The downside of menu inflation on delivery apps Discover how to leverage discounts strategically, minimize food wastage, and build lasting customer loyalty. It's time to reimagine the role of discounts in your restaurant's growth strategy. Read the full article to explore these insights and more. Your restaurant's future success may depend on it! 🚀 https://lnkd.in/gBzPy7Dn #RestaurantBusiness #CustomerConversions #DiscountStrategy #LinkedInArticle #Discountkills #Scalewithdiscount #Restaurantdiscountstrategy #Discountstrategy #Discount #Cashback #restaurantcashback #offers #Restaurantowner #Learning #Restaurantsales

When it comes to picking a spot to grab a quick coffee or bite to eat — speed and convenience are key. 🔐 Digital ordering options that let your guests order ahead and skip the line could be the difference between someone choosing your coffee shop over Starbucks, or your restaurant over McDonald's. 🍟 Nearly half of millennial parents would prefer to skip a restaurant visit entirely rather than wait in line, underscoring the importance of convenient digital ordering options in increasing guest loyalty. 📲 Here are a few industry giants who've truly nailed it: