Wendy’s has clarified its stance on pricing strategies following online backlash and scrutiny from Senator Elizabeth Warren. The company stated that it has no intention to implement dynamic pricing, which involves surge pricing during peak hours, akin to practices seen in airlines and ride-sharing services like Uber.
The CEO’s mention of testing dynamic pricing in 2025 sparked concern among customers, leading to vows of hoarding Frosty milkshakes for summer and accusations of price gouging from Senator Warren.
In response to the backlash, Wendy’s emphasized that it has no plans to raise prices during peak customer visits. Instead, the company highlighted its digital menu boards, which will facilitate easier implementation of discounts rather than price increases based on demand.
Wendy’s asserted that comments about dynamic pricing were misconstrued and clarified that it remains committed to providing value to its customers without resorting to surge pricing tactics.
Restaurant analysts, including Victor Fernandez from Black Box Intelligence and Michael Lukianoff from SignalFlare.ai, expressed skepticism about the viability of dynamic pricing in the restaurant industry. Fernandez remarked that he doesn’t foresee dynamic pricing gaining traction anytime soon, while Lukianoff predicted that customers would opt to dine elsewhere if faced with such pricing tactics.
Senator Elizabeth Warren echoed these sentiments, criticizing dynamic pricing as a form of price gouging that could inflate lunch costs for customers even if the expenses to the company remain unchanged. She asserted that Wendy’s plan could result in higher prices for consumers without any corresponding increase in costs for the company, describing it as “price gouging plain and simple.”