Wendy’s Serves Up A PR Blunderburger

by Kevin Burton

   In the face of a consumer backlash, Wendy’s is trying to talk its way around plans to implement surge pricing.

   Wendy’s is the second-largest burger chain in the US, with 6,000 restaurant locations. Last week it announced it would begin fluctuating prices for its food products next year, depending on the time of day, according to ABC News.

    “Customers could pay $1 more for a sandwich like the Baconator during the lunch rush, for example,” according to a report on ABCs Good Morning America.

   Customers took to Twitter (stupidly rebranded as X) to call that “price gouging.”  Reaction to the new plan was frosty.

   Now Wendy’s is attempting a public relations moonwalk, as evidenced by this CNN report:

   “In a blog post Tuesday, the fast-food chain explained that its test of new menus with prices that change throughout the day is not meant to cost more for customers,” wrote CNN reporter John Towfighi.

   “This was misconstrued in some media reports as an intent to raise prices when demand is highest at our restaurants,” the company statement read. “Digital menuboards could allow us to change the menu offerings at different times of day and offer discounts and value offers to our customers more easily, particularly in the slower times of day.”

   In an email to CNN, Wendy’s was more blunt: “Wendy’s will not implement surge pricing, which is the practice of raising prices when demand is highest. This was not a change in plans. It was never our plan to raise prices when customers are visiting us the most.”

   “But the questions over what to call Wendy’s experiment – surge pricing? Dynamic pricing? Something else? – underscore the PR problem around a pricing system that’s already been used for years in a range of industries, from ride-sharing to airlines to your local happy hour.”

   “Surge pricing refers to dynamic pricing, which is a way for businesses to charge more (or less) based on how many people want their products at any given time.”

   “Whoever called it surge pricing made the worst marketing mistake you can think of,” said Juan Castillo, assistant professor of economics at the University of Pennsylvania. “Surge pricing sent the message to everybody that this is mostly about increasing prices. That created a very negative reaction from the public.”

   Wendy’s’ after-the-fact circumlocution reminds me of a teenager trying to get the keys to the family car.  The kid always emphasizes the shopping and other errand he/she could do for the parents, not mentioning the anticipated Friday- and Saturday night frolicking with friends.

   “Just think” Wendy’s in effect is saying, “ “when it’s not so busy we could lower the prices. That’s what we meant.”

   Parents never bought that. I’m not buying it from Wendy’s.

   “Wendy’s CEO Kirk Tanner said the company will spend $20 million on high-tech digital menu boards that can update prices in real time, similar to surge pricing strategies adopted by rideshare companies like Uber and Lyft, airlines and hotels,” ABC reported.

   Gather round kids and listen to Uncle Kev. Wendy’s will not be spending $20 million on menu boards in order to lower your prices. 

   Well my family has already jumped off this bus, so for us it’s a moot point. Prices at Wendy’s have already soared in the past two years. At the same time, the children staffing the Wendy’s closest to us have hit a new low in customer service, listening comprehension and attention to detail.

   A family member gave us a Wendy’s gift card for Christmas. Once that is used up, we’re out.

   Wendy’s became my go-to fast food restaurant because they used to have a near 100 percent record of getting my order right. Whatever I am ordering, I want it plain. Wendy’s over the years, has almost always gotten it right.

   I told my first travel agent how much I hate United Airlines and to always use somebody else if at all possible. She told me, “If you fly enough you will hate all the airlines.”

   That truism came to mind when ABC reported that, “Some experts say customers could see more menu pricing changes ahead at other fast-food chains, including McDonald’s and Burger King, especially if Wendy’s sees a boost in its bottom line after implementing dynamic pricing.”

   Wendy’s was founded in my former hometown of Columbus, Ohio. That’s another reason I am sad to have to abandon them.

   Now I live in Southcentral Kansas and have chosen Braum’s as the new go-to place (albeit a go-to less often place). Turns out by moving to Braums, I am buying local.

   “In order to maintain the freshness of its products, the company does not open stores outside of a 300-mile radius of the home farm in Tuttle, Oklahoma,” according to Wikipedia. “As of 2017, there are almost 300 stores in operation, with 128 stores in Oklahoma, 99 in Texas, 27 in Kansas and 13 in both Arkansas and Missouri.”