A Wendy's restaurant is shown in Brookhaven, Pa., Monday, May 10, 2021. Fast food restaurants are diving deeper into the digital realm, adopting strategies that range from dynamic pricing to drive-thru voice bots, data collection and weather-based menu boards. THE CANADIAN PRESS/AP-Matt Rourke
Fast food chains are increasingly delving into digital innovations, incorporating strategies like dynamic pricing and drive-thru voice bots, as well as weather-based menu boards.
While these advanced sales techniques offer the potential to streamline service, attract new customers, and address labor shortages amid high turnover rates, experts caution that concerns over poor communication and privacy may deter the public.
Wendy's faced criticism after CEO Kirk Tanner mentioned plans for "dynamic pricing" during a conference call, sparking confusion about potential surge pricing. However, Wendy's later clarified that the fluctuating prices aim to offer lower rates during slower times rather than surges during peak hours.
This move reflects a broader trend in the quick-service sector, which increasingly integrates digital technology and artificial intelligence. Various chains, including Popeyes, Taco Bell, Panera Bread, and Chipotle, have experimented with AI-driven virtual assistants at drive-thrus.
Wendy's intends to introduce AI-driven menu boards across its U.S. locations next year, allowing for dynamic changes and suggestive selling based on weather conditions. McDonald’s has pursued similar strategies for years, acquiring Israeli AI firm Dynamic Yield in 2019.
While technology adoption in restaurants has surged in recent years, concerns about privacy and consumer habits persist. Maintaining customer privacy is crucial, particularly as personalized data collection becomes more prevalent.
Dynamic pricing, already common in various industries, enables businesses to adjust prices based on demand, supply, and consumer behavior. In the fast-food industry, where digital orders have surged, such strategies aim to optimize revenue and mitigate peak-hour rushes.
Despite potential benefits, challenges remain, such as adapting to noisy drive-thru environments and ensuring accurate order processing by voice bots. Nevertheless, Wendy's remains committed to technological advancements, investing $30 million in digital menu boards over the next two years.
The timeline for introducing AI-enriched menus or dynamic pricing in Canada remains uncertain, according to Wendy's spokesperson Marcy McMillan.
