Wendy's new potentially $30 Hamburger
Marketing and Business in the World Introduction Wendy's has announced that they will be spending roughly 20 million dollars on new electric menus to introduce new "Surge pricing" similar to Uber. Based on consumer demand they will increase prices of menu items as the day goes on. Can they pull it off? The CEO of Wendy's, Todd A. Penegor, states "For us, it was all about consumer reaction. The concern was if you're going to raise prices, you're going to sell less product, and it turns out that really wasn't the case." He basically said that their forecasts show that even with predatory pricing, their sales will actually not take that big of a dip. They are trying to follow in Uber's footsteps with their surge pricing and the success of that. However, there are key differences in the companies, products, and even the industry that these two companies are based in. While Uber uses surge pricing as an incentive for drivers, Wendy'...