Source: AP Photo/Gene J. Puskar, File.
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Just two words created a publicity nightmare for fast-food giant Wendy’s: dynamic pricing.
In late February 2024, news broke that the chain was considering charging different prices at different times of day — a tactic usually associated with airlines and ride-hailing companies. As headlines like “Wendy’s to roll out Uber-style surge-pricing” flooded the news, #BoycottWendys trended on social media. Wendy’s rival Burger King quickly took advantage of the news with a “No urge to surge” promotion.
The backlash put Wendy’s on the defensive.
Within days, Wendy’s said that it never intended to raise prices at times of peak demand, Instead, it only intended to lower prices when store traffic was slow.
ABOUT THE AUTHOR
Vivek Astvansh is an associate professor of quantitative marketing and analytics at McGill University.
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