Wendy's, "dynamic pricing" and their subsequent "clarification"

[mikeymikec]

I think pretty high confidence - like I said it's super easy to substitute with somewhere else as fast food places are usually clustered together. If you were mad at a place and you could literally go next door to a place you weren't mad at it's not a big deal. If you're a huge Wendy's fan maybe it doesn't work for you but if you're a regular person who is mostly indifferent to what fast food burger you get then why not spend the extra second and a half?

Family / couple scenarios for example - whiny child, whiny partner. Or say you and a work friend are trying to pick somewhere for lunch and you're both picky for different reasons.

Depending on where you are geographically, the choice may not be so easy as three places to choose on the same road / within a relatively convenient distance given the timing of events in one's day. In the UK, if I pick my nearest city (which is not a big UK city), in the city centre if I pick where say McDonalds is, I can't think of a terribly nearby KFC / BK for example. On the outskirts there are shopping districts that it's actually easier than the city centre to find them reasonably near each other.

 

[hal2kilo]

Family / couple scenarios for example - whiny child, whiny partner. Or say you and a work friend are trying to pick somewhere for lunch and you're both picky for different reasons.

Depending on where you are geographically, the choice may not be so easy as three places to choose on the same road / within a relatively convenient distance given the timing of events in one's day. In the UK, if I pick my nearest city (which is not a big UK city), in the city centre if I pick where say McDonalds is, I can't think of a terribly nearby KFC / BK for example. On the outskirts there are shopping districts that it's actually easier than the city centre to find them reasonably near each other.

Glad to know the UK hasn't been inundated with gut bomb alley's. Although, I distinctly remember a Mikey D's being right in the middle of the Medieval town of Sterling.

 

[fskimospy]

Family / couple scenarios for example - whiny child, whiny partner. Or say you and a work friend are trying to pick somewhere for lunch and you're both picky for different reasons.

Depending on where you are geographically, the choice may not be so easy as three places to choose on the same road / within a relatively convenient distance given the timing of events in one's day. In the UK, if I pick my nearest city (which is not a big UK city), in the city centre if I pick where say McDonalds is, I can't think of a terribly nearby KFC / BK for example. On the outskirts there are shopping districts that it's actually easier than the city centre to find them reasonably near each other.

I can't speak for the UK but in the US it is extremely common for multiple fast food places to be in close proximity. They do this on purpose, in fact. It's a very substitutable product.

I'm sure there are cases where there is no easy substitution but for most people in the US it's not a problem.

 

[hal2kilo]

I can't speak for the UK but in the US it is extremely common for multiple fast food places to be in close proximity. They do this on purpose, in fact. It's a very substitutable product.

I'm sure there are cases where there is no easy substitution but for most people in the US it's not a problem.

Just used the gas station model.

 

[Fanatical Meat]

I don’t necessarily think this is a bad idea, basically encourage people to come when staff allows for good service.
I had this thought when I worked in wireless, someone coming in moments before close and forcing two people to work late simply because they could have been bothered to show up earlier or the next day. There should be some sort of charge for that. Simply put customers need to have some skin in the game.
I do fear surge pricing could spread and get out of hand.

 

[Fenixgoon]

I expect we'll eventually find out, it's not hard to rile people up online, and that online fervor doesn't necessarily translate to real world impact.

Yup. Their sales, or rather, profit, will tell them whether people are willing to tolerate it. If the profit line goes up, they'll keep it.

 

[ch33zw1z]

I don’t necessarily think this is a bad idea, basically encourage people to come when staff allows for good service.
I had this thought when I worked in wireless, someone coming in moments before close and forcing two people to work late simply because they could have been bothered to show up earlier or the next day. There should be some sort of charge for that. Simply put customers need to have some skin in the game.
I do fear surge pricing could spread and get out of hand.

FF, or any busy / slow businesses tend to schedule accordingly. So going in non peak hours may not mean faster service or better food.

Which brings up another point, how fast will the price change. For example: busy time is 11:30-2, so a bunch of people show up at 2:15 for non peak hours, does the price go up because the system “sees” a surge in purchasing. So if you’re like last in line, lol….yea u get the idea

 

[eelw]

I’ll accept surge pricing if they give discounts when using self checkout

 

[Fanatical Meat]

FF, or any busy / slow businesses tend to schedule accordingly. So going in non peak hours may not mean faster service or better food.

Which brings up another point, how fast will the price change. For example: busy time is 11:30-2, so a bunch of people show up at 2:15 for non peak hours, does the price go up because the system “sees” a surge in purchasing. So if you’re like last in line, lol….yea u get the idea

Yeah, I forgot to mention I’d like to see some of that money going to the worker(s)

 

[Fenixgoon]

Yeah, I forgot to mention I’d like to see some of that money going to the worker(s)

In America?

 

[nakedfrog]

Yeah, I forgot to mention I’d like to see some of that money going to the worker(s)

While you're at it, would you also like a unicorn?

 

[Fanatical Meat]

While you're at it, would you also like a unicorn?

Yes, I want more than my fair share now. Took longer than it should have to learn it.

 

[fskimospy]

Yeah, I forgot to mention I’d like to see some of that money going to the worker(s)

Fast food workers have already seen pretty dramatic increases in their wages over the last few years.

 

[Fanatical Meat]

Fast food workers have already seen pretty dramatic increases in their wages over the last few years.

And they can see more when the workplace is exceedingly busy.
Per what I said earlier. I want more.
I am open to overtime, I am not open to shorter breaks and generally shittier schedules because the the staff to customer ratio is off. I will not enable an employer to not fill open positions because “nobody is applying”, if that’s the case you need to pay more or spend money in some other way to hire someone. If the employer wants to share the saved salary with me in bonuses or whatever that’s cool. I do not exist to stay late at last minute notice or have work impact my home life.

 

[[DHT]Osiris]

Fast food workers have already seen pretty dramatic increases in their wages over the last few years.

Which is great because the cost of everything has stayed the same.

 

[ch33zw1z]

Fast food workers have already seen pretty dramatic increases in their wages over the last few years.

Sure, but across the board? As in, every state?

 

[Zorba]

Businesses have been lowering prices during off-peak hours for a long time. Think happy hour type stuff or Tuesday/Wednesday only deals. If that is what they meant then there really is no issue. if they meant surge pricing and are walking it back due to backlash then there is also no harm done. I'm willing to give them the benefit of the doubt. All that matters is what they actually do. If they were contemplating surge pricing I'd hope the board realizes that the people pushing for it should be launched into the sun.

Technically the dynamic pricing at most airlines and hotels is actually discounting too. Airlines have a ton of different fare codes, the cheaper codes are offered first, but the "full fare" price was always there and those other fares are considered "Discount Fares." Same with Hotels the max rate is the rack rate on the back of the door, everything else is a discount.

Wendy's can triple the cost of their "food" then offer discounts when it slow, but the net result would still be significantly higher food prices at peak times even if they don't "surge" the prices like Uber does.

 

[hal2kilo]

Sure, but across the board? As in, every state?

Well, of course except the usual geographic locations in the country. You know basically the southeast, and the western Midwest.

 

[fskimospy]

Sure, but across the board? As in, every state?

Pretty sure it’s across the board. I have a friend who was a hiring manager for a holding group that owned a ton of burger kings in North Carolina and they were jacking their wages way up.

 

[fskimospy]

Which is great because the cost of everything has stayed the same.

Their wage increases have vastly outpaced inflation.

Like, vastly.

 

[fskimospy]

I do find it sort of funny that people have advocated for wage increases for low wage workers and are then mad when the products they make go up in price.

Like, what did you expect?

 

[nakedfrog]

I do find it sort of funny that people have advocated for wage increases for low wage workers and are then mad when the products they make go up in price.

Like, what did you expect?

Hm, it seems like they're already making adequate profits without raising prices yet further?

Wendy's net income rises nearly 14% to $46.9m in Q4 2023

Wendy's has announced a notable 13.6% increase in net income for Q4 2023, reaching $46.9m compared to $41.3m in Q4 2022.

www.verdictfoodservice.com

 

[Zorba]

I tend to doubt surge pricing is coming. The reason surge pricing works for things like car service is that there's a limited supply of cars offering that service at the time and demand has outstripped supply. Fast food customers are very price sensitive and there's fast food places everywhere so there's no real limited supply in most areas. If Wendy's jacks up their prices I imagine people will just go to the McDonalds next door or whatever.

The only way this would work is if all the chains did it together but that's illegal collusion. I guess if Trump got back into power they could probably get away with it but any normal president would shut that shit down.

It's not illegal to collude in public. They are announcing their intention so others couple copy. Then they could make their APIs public, so they can all follow each other. See the airlines again, they've been publicly colluding for at least a couple decades.

 

[fskimospy]

Hm, it seems like they're already making adequate profits without raising prices yet further?

Wendy's net income rises nearly 14% to $46.9m in Q4 2023

Wendy's has announced a notable 13.6% increase in net income for Q4 2023, reaching $46.9m compared to $41.3m in Q4 2022.

www.verdictfoodservice.com

Are you disputing that the wages for workers have gone way up?

 

[nakedfrog]

Are you disputing that the wages for workers have gone way up?

Doesn't seem like it to me? Is that what you're getting out of my response? What led you to that conclusion?