Wendy’s will start testing surge pricing on its menu in 2025

The prices for a Dave’s Single, Baconator or classic Frosty dessert could fluctuate based on demand under a new plan that the Wendy’s chief executive mentioned during an earnings call earlier this month.

The Ohio-based fast food company, which operates about 7,100 restaurants in the U.S., plans to start testing its dynamic pricing menu next year.

It’s one component of a $20 million digital menu investment that will enable Wendy’s operators to experiment with altering prices based on how much traffic they have. The company also plans to change its menu based on time of day.

“We are making a significant investment in technology to accelerate our digital business,” a Wendy’s spokesperson told Spectrum News.

One of the benefits of the investment “will be the flexibility to change the menu more easily and to offer discounts and value offers to our customers through innovations such as digital menu boards, which will roll out in some U.S. restaurants.”

The spokesperson said it expects the move to drive traffic by “providing value during slower parts of the day.”

Starting in early 2025, Wendy’s will also test AI-enabled menu changes and so-called suggestive selling, where customers are offered recommendations based on factors such as weather.