Saving & Spending Money News

Surge Pricing for Cheeseburgers Was Always a Horrible Idea

Wendy’s plan to implement surge pricing was met with such extreme backlash that the restaurant tried to walk back its original announcement.

young woman wearing black t-shirt eating burger with fries and cola drink.
Updated Sept. 24, 2024
Fact checked

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

Surge pricing, which hikes prices when demand is high, is probably the most common complaint among customers who use ridesharing apps like Uber and Lyft. While some may write it off as simply supply and demand at work, others see it as essentially the same idea as price gouging, which is illegal in most states.

News broke this week that fast food giant Wendy’s plans to implement its own version of surge pricing beginning as early as 2025—and customers were, to put it lightly, outraged.

There are many reasons why what worked for rideshare apps and for ticket sellers, like Ticketmaster, will fail miserably in the fast-food game. Here are a few.

Earn cash back on everyday purchases with this rare account

Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!1

With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!

This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.

Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.

Apply for a Discover Cashback Checking account today

What is surge pricing?

stokkete/Adobe woman standing with grocery at store reviewing grocery receipt in hand

Surge pricing, also known as dynamic pricing, means that the prices of products or services can vary based on demand.

Dynamic pricing made headlines, and sparked much ire, when Ticketmaster used the model to sell tickets to some of last year’s most in-demand concerts. Some fans even reported ticket prices changing while they had them in their online cart en route to checkout.

The idea of surge or dynamic pricing isn’t entirely new. Airlines, for example, have long been known to hike flight prices during heavy travel times, like spring break.

Still, the idea of dynamic pricing on a Baconator is not sitting well with customers.

Wendy’s controversial plan

Roman Tiraspolsky/Adobe Wendy's logo

Earlier this month, Wendy’s CEO Kirk Tanner confirmed that the fast-food giant would begin experimenting with “dynamic pricing and daypart offerings” as early as 2025. Tanner also said they would be adding AI-enabled menu changes.

However, after much backlash, the company walked back the claims, saying that the plans for dynamic pricing don’t necessarily mean their burgers will cost more during busy periods, like the lunch rush.

In a statement to Reuters, the company said that the changes would allow Wendy’s to offer discounts during “slower times of day,” touting the dynamic pricing changes as something that could actually save customers money.

However, anyone who has ever needed to get an Uber on New Year’s Eve or tried to get anywhere near Taylor Swift’s Era’s Tour may be wary to take the company at its word.

Nobody wants dynamically-priced burgers

Image courtesy of wendys.com Wendy's baconator burger

The consensus among customers, even those who consider Wendy’s their top fast food choice, seems to be that there is no way they are dealing with surge pricing for cheeseburgers and Frosties.

A major flaw in the dynamic pricing plan is that Wendy’s simply does not have a hold over its industry in the same way Uber and Lyft do, as Reddit users were quick to point out.

“It’s one thing to deal with surge pricing when you only have two rideshare apps to work with, but there are literally hundreds of restaurants within five miles of my house,” one wrote.

“They never get my order right now. Maybe try putting on your pants before your shoes, Wendy’s,” another added.

It is well worth noting that these are some of the more tame complaints that flooded the internet after the Wendy’s news broke.

Bottom line

ronstik/Adobe woman reading customer reviews on smartphone

Only time will tell if the Wendy’s plan to bring dynamic pricing to fast food will be successful and if other companies will follow suit.

However, judging by the sheer backlash the company is facing now, and the moves to walk back the surge pricing announcement, it seems the only thing Wendy’s has done thus far is find a beef with customers.

Lucrative, Flat-Rate Cash Rewards

5.0
info

Wells Fargo Active Cash® Card

Current Offer

$200 cash rewards bonus after spending $500 in purchases in the first 3 months

Annual Fee

$0

Rewards Rate

Earn unlimited 2% cash rewards on purchases

Benefits and Drawbacks
Card Details