News

This was the straw that broke the camel's back for me. I considered them an upper tier fast food place for decades. Past few years or so they have shit on all that.

They've been nearly dead to me for awhile, but they are fully dead to me now.

Edited to add: Arby's is expensive as hell, but at least their food is consistently good - at least has been every time I've had it. But even arby's is really close to the "I could get that from a bar cheaper and better" line for the stuff I really enjoy from them (like their surprisingly good gyro). At least there you can fall back on the good old roast beef sandwich and it's not too too bad price-wise.

Good call. As with every other industry where bullshit rent-seeking has taken hold, the attempted fee tack-on and walkback are an experiment in how far they can go before appeasing customers. It's about testing waters before wearing people down. Rest assured, the one CEO's peers have taken note of this noble effort. Eventually, as they see it, one of them will succeed in making it stick, paving the way for them all to do the same. The first CEO to make it stick will get additional bonuses, praise, and a higher level of notoriety within their rarefied circles.

Yeah, adjusting prices each hour or each days is kind of stupid. But when you're looking at price adjusting in weeks or months to follow the seasons..it makes more sense but stupid nonetheless.

I can't understand why they didn't start it this way in the 1st place.

In the UK most pub chains do 2 for 1 main meals Monday to Friday in late afternoon - early evening.

It basically suggests as much in the closing statements. That's exactly what they'd do.

What I think they meant to have rollout is to potentially raise their prices across the board and then offer discounts at off-peak times.

Functionally it's the exact same thing as what leaked but is way easier to sell as value added to potential customers.

If they make the same amount by selling less units that makes a hell of a lot more sense.

The average person probably wouldn’t notice besides “damn inflation making stuff expensive”, and they may lose a small percentage of their customers, but if the price difference makes up for it then they’re golden.

Yes. Theoretically they can drive people away and make more money if the people they haven’t driven away spend more for less goods.

Let’s imagine on a normal lunch hour I sell 100 burgers at lunch for $4. If I raised my price to $4.50, I’d only sell 80 burgers. If I raised the price to $5 then I’d only sell 50 burgers If a burger costs me $3 then I normally make $1 a burger, but at the middle price I make $1.50, and $2 at the high price.

100 burger x $1 = $100 profit
80 burgers x $1.5 = $120 profit
50 burgers x $2 = $100 profit

The trick is figuring out how changing price will affect demand without pissing all your potential customers off. Restaurants already do dynamic pricing with Happy Hour and Taco Tuesdays etc. They give a “discount” to entice more people to come in when they are less busy.

People heard “dynamic pricing” and immediately assumed “surge pricing.”

Dynamic pricing, especially in retail, is often used to milk your wallet another way - sales, promos, and bundles. You’re incentivized to buy more.

Given that the press release talked about providing value and incentives to come back, I will be money that this was an algorithmic promo engine. Wendy’s will still get more money from you, but that’s because they want to manipulate your purchasing behavior, not raise prices at noon.

They sell burgers. They're better than McDonald's and Burger King. Maybe a bit better than Sonic or Dairy Queen. Not as good as Five Guys.

Similar to McDonald's. Burgers and chicken nuggets for the most part.

They're top tier fast food burger chain in terms of quality, way better than McDonald's or Jack in the Box. This is a super asshole business idea though.

Same tier as McDonald’s and Burger King, but at the top while McDonald’s is the floor.

That said I don’t think Wendy’s is all that great. If I had to choose a left turn for Wendy’s or a right turn for McDonald’s I’ll pick mc dicks 10/10 times. Their “fresh never frozen” and “cooked to order” translates to takes 10 times longer than Mcky Ds.

Nah, I think they were really going to try and introduce surge pricing until they saw how intense the backlash was, then decided to try and walk it back.

Maybe you are right, but I have a tough time giving these giant companies the benefit of doubt when it's already been shown there was price gouging across the board in the middle of a pandemic.

Yeah corporations suck but I think you're right. This plan was just poorly worded. Congestion pricing does not make sense for a market with so much competition.