Video above: Who has the fastest drive-thru of 2023?
TAMPA, Fla. (WFLA) -- Fast food giant Wendy's may adopt a "surge-pricing" model similar to that of ride-sharing companies in the future, the company hinted during an earnings call last week.
During a Feb. 15 investor call, CEO Kirk Tanner said the company plans to spend about $20 million to roll out digital menu boards to all restaurants by the end of 2025.
Those digital billboards, he says, will allow the restaurant to experiment with "surge-pricing," meaning customers could pay more for the same items depending on the time of day.
Tanner said the testing will begin as early as 2025.
"We will begin testing more enhanced features like dynamic pricing and daypart offering, along with AI-enabled menu changes and suggestive selling," Tanner said.
Tanner didn't specify any examples of what the pricing structure would look like, or how much more it could cost a customer for a burger during the lunch rush as opposed to later in the afternoon.
The company also recently rolled out its Wendy's FreshAI platform to some restaurants to allow its employees to focus more on making fresh food, Tanner said.
FreshAI will automate the drive-thru experience in hopes of improving speed, accuracy, and consistency, the company said in a blog post detailing the technology in December.
Uber uses a "surge-pricing" model which results in some prices becoming significantly higher depending on the level of demand and amount of available drivers. Lyft is also known for similar practices, however, the company said it plans to cut back on the practice, according to Engadget.