Fast food chain Wendy’s to test surge pricing, AI-enabled menu changes

US burger chain Wendy’s is looking to test having the prices of its menu items fluctuate throughout the day based on demand, implementing a strategy that has already taken hold with ride-sharing companies and ticket sellers.

During a conference call earlier this month, Wendy’s CEO Kirk Tanner said that the Ohio-based burger chain will start testing dynamic pricing, also known as surge pricing, as early as next year.

“Beginning as early as 2025, we will begin testing more enhanced features like dynamic pricing and day-part offerings, along with AI-enabled menu changes and suggestive selling,” he said.

“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.”

Wendy’s Co plans to invest about $US20 million (AU$31 million) to launch digital menu boards at all of its US company-run restaurants by the end of 2025.

It also plans to invest approximately $US10 million over the next two years to support digital menu enhancements globally.

Tanner, a longtime PepsiCo executive, became Wendy’s CEO earlier this month.

He succeeded Todd Penegor, who had served as Wendy’s president and CEO since 2016.

Last year, Penegor announced a restructuring intended to speed decision-making and invest more in new restaurant development, particularly overseas.

The chain and its franchisees operate about 7,000 restaurants worldwide.

This article was first published by AAP.