Wendy’s announced it will launch new menu prices that will fluctuate depending on the time of day.
The country’s second-largest burger chain, which has 6,000 restaurant locations, said the change will begin next year.
Customers could pay $1 more for a sandwich like the Baconator during the lunch rush, for example.
“Historically, companies just set one price that was constant across time. Pricing algorithms allow companies to change prices throughout the day or perhaps even throughout an hour,” Zach Brown, a professor of economics at the University of Michigan, told “Good Morning America.”
Wendy’s CEO Kirk Tanner said the company will spend $20 million on high-tech digital menu boards that can update prices in real time, similar to surge pricing strategies adopted by rideshare companies like Uber and Lyft, airlines and hotels.
“During the busy times, they can obviously increase profits then,” Brown said. “And also, some consumers will want to shift to the less busy times when demand is lower and prices are lower.”
Some experts say customers could see more menu pricing changes ahead at other fast food chains, including McDonald’s and Burger King, especially if Wendy’s sees a boost in its bottom line after implementing dynamic pricing.
