The days of cheap fast-food burgers may very well be coming to an end, folks, as we approach the sunset of the American empire.
Wendy's is preparing to test an 'Uber-style' surge-pricing model where the cost of menu items will fluctuate throughout the day based on demand — meaning a Dave's burger will cost more during the lunch or dinner rush.
The fast-food chain's unappetizing plans, set to be tested in a high-stakes rollout next year, will squeeze more money out of already inflation-battered Americans who may not have the option to eat their meals during 'off-peak' hours.
The burger chain will reportedly be investing "$20 million on high-tech menu boards that will be able to update prices in real-time without incurring additional overhead costs."
That means you may be at a Wendy's around 12:00 pm or 5:30 pm and look up at their price board and see something along the lines of:
On the one hand you can sort of appreciate the economy of it. Charging higher prices when there's more demand is one of the basic tenets of economics. It's the basic principle behind "Happy Hour," say, or matinee prices at movie theaters.
On the other hand, this seems unlikely to work in Wendy's favor:
'There are people who view dynamic pricing as a rip-off,' restaurant analyst Mark Kalinowski told The Post.
Added restaurant consultant Arlene Spiegel, 'It won't fly and guests will be very upset. You can't surprise a guest with, "Your meal will cost another 50 cents or $1 today."'
...
'Guess people better change their lunch hours from 2pm to 4pm. With all of the concern of rising prices, the last thing you want to have to consider is how much will it cost you for a burger and fries depending on the time of day,' Ted Jenkin, CEO of Atlanta-based wealth management firm oXYGen Financial, told The Post.
Yeah if you try yanking the afternoon price of a burger up by like 18% I think your customers are going to show themselves the door.
Wendy's, meanwhile, already tops the list as the most expensive fast food chain in the country.
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