Tech Tuesday: Dynamic Pricing at the Drive-Thru


We first explored “dynamic pricing” in fast food back in February 2024. Now fast-forward to today, and the concept is actually taking shape—powered by AI, sensors, and real-time inventory. Let’s revisit the idea and see what's changed.

What’s New Since Last Time?

  • Wendy’s is testing dynamic pricing for 2025: The chain is rolling out $20M in digital menu boards and exploring AI-enabled price changes and suggestive selling. Importantly, the company emphasized that pricing will fluctuate downward during slow periods, not hike during peak times. 
  • Industry momentum grows: Other restaurant brands, like Dave & Buster’s and Tony Roma’s, are reported to be planning similar pricing experiments.
  • Real tech frameworks emerging: AI pricing tools now meld demand data, inventory levels, competitor pricing, and weather patterns—automating the price-setting process and tying into POS and inventory systems.

How It Could Work in a QSR (Quick-Service Restaurant)

Imagine an AI-powered system that: detects unsold items, predicts upcoming traffic dips, and updates the menu board to offer a “happy hour” on that chicken sandwich. All within your drive-thru queue.

It works like this:

  1. Data input: AI ingests real-time inventory, historical sales, day-part demand, competitor pricing, and local weather.
  2. Algorithmic pricing: ML models assess price elasticity and forecast demand, suggesting optimal price shifts.
  3. Menu updates: Digital boards refresh promotions in real time, under human or automatic approval.
  4. Customer response: Deals attract visits during slow periods, smoothing traffic and reducing waste.

Why It Could Be a Game-Changer

  • Reduced food waste: Flash discounts can help move inventory nearing expiry. 
  • Operational balance: AI-driven pricing can lighten peak-hour pressure and drive steadier traffic.
  • Smarter margins: With automation, profitability gains aren't just theoretical—they become measurable in real time.

But There Are Risks

  • Consumer trust: As one professor put it, unpredictable pricing “feels like a punch in the gut.” 
  • Perception of fairness: Without transparency, customers may see “surge pricing” as gouging, even when prices are mainly dropping. 
  • Rollback risks: Implementing price fluctuations too aggressively could backfire. Wendy’s was careful to clarify rising prices wasn’t part of the plan. 

Looking Ahead

AI-driven pricing is increasingly feasible—from prototyping at chains like Wendy’s to potential tools from platforms like Chowly, which now offer integrated pricing management across online and in-store menus. :contentReference[oaicite:9]{index=9}

The big question: Will consumers accept this next wave of convenience, or will the “surge pricing” stigma hold it back?

Let us know your thoughts: Would you chase a fast-food flash sale on a rainy Wednesday afternoon, or walk out when your burger costs change at lunch? Let’s talk ethics, tech, and appetite in the comments below.

References

Related: Our Feb 19, 2024 take — Revolutionizing Fast Food: Wendy’s, Dynamic Pricing, and the Future of the Drive‑Thru .

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