Although the restaurant industry has been experimenting with dynamic pricing for years, public discourse around the topic grew last month with the news that Wendy’s would be testing dynamic pricing in 2025. Though much of the social media buzz can be attributed to the public conflation of dynamic pricing with surge pricing, there is no doubt that variable menu prices — whether they are affected by the time of day, geographic location, or changing consumer needs — are key to restaurant optimization in 2024 and beyond.
New tech capabilities, including AI, will play a crucial role in the rise of dynamic pricing across the industry. For Wendy’s, changeable pricing starts with digital menu boards, which are being rolled out across the company’s portfolio, and includes AI-enabled menu changes that allow restaurants to raise or lower prices in the moment. This type of instant gratification suggestive pricing capability is being tested out by companies like restaurant revenue management platform Juicer, which just announced a new tool that helps restaurants adjust pricing and special offers based on data from local competitors.