Robert ReichFeb 28, 2024

While Wendy’s plans to price gouge you with Uber-style surge pricing, it’s simultaneously enriching wealthy shareholders with a $500 million stock buyback program.

That’s the thing about corporate greed: It’s shameless.

They’ll just keep pushing to see how far they can go.

Show threadMatt Blaze
@rbreich @pluralistic And it's not even Uber-style. At least with Uber, the drivers get paid more during surge pricing. The Wendy's cooks and cashiers (who are working harder during the rush)? Not so much.
Feb 28, 2024 at 8:30pmWeb
Show threadSteven HiltonFeb 28, 2024
@mattblaze @rbreich @pluralistic Damn good point.
Show threadArtemesiaFeb 28, 2024

@mattblaze @rbreich @pluralistic

Uber didn't always pass through any of the surge surcharge to the drivers. Plenty of anecdotes about the passenger and the driver being shown very different pricing.

But Wendy's, in their infinite wisdom, are today walking back their surge pricing plan. "Instead", they will do dynamic discounts and "value packages". So I presume this means they double the prices across the board, then offer discounts during slow periods. But it's totally not surge pricing. https://apnews.com/article/wendys-burger-pricing-ef75fa9214beddbd0d9d459f37722638

Wendy’s says it won't increase prices during busiest times

Wendy’s says that it has no plans to increase prices during the busiest times at its restaurants. The burger chain clarified its stance on how it will approach pricing after various media reports said that the company was looking to test having the prices of its menu items fluctuate throughout the day based on demand. Wendy’s said that its digital menu boards “could allow us to change the menu offerings at different times of day and offer discounts and value offers to our customers more easily, particularly in the slower times of day.”

AP News
Show threadferricoxideFeb 28, 2024
@mattblaze @rbreich @pluralistic

Interesting to see how it plays out. Fast food us already suffering a falloff in order-counts. Uber and other functional monopolies can do surge pricing because your options are use their service or forgo services altogether. Plus, I can make an informed decision by opening an app. Wendy's, if I can't rely on predictable pricing, I have a bazjllion alternatives +plus, I ain't installing a fast food app).


I do wonder what this does for participation with delivery services? Do they always just charge the max surge? I don't see DoorDash (et. al.) consuming fluctuating prices into their systems.
Show threadMercFeb 29, 2024

@mattblaze @rbreich @pluralistic Theoretically, the workers would be working less hard during the rush.

Surge pricing is all about raising the price when demand is high. Higher prices means fewer customers (but more profit per customer). Fewer customers means a less busy restaurant, so less work.

OTOH, surge pricing can also mean lowering the price when demand is low, in order to stimulate demand. So, the late night shifts where there was a lot of down time might get a bit busier.

Show threadMatt BlazeFeb 29, 2024
@merc @rbreich @pluralistic No one is buying a $50,000 hamburger, even if you only have to sell one per day. In practice, the goal of surge pricing (in something like fast food) is to maximize the price you can charge while operating at capacity.
Show threadMercFeb 29, 2024

@mattblaze @rbreich @pluralistic Exactly, so the price would go up, driving demand down.

At worst, during a surge the workers would be just as busy as they are now. But, they wouldn't ever be more busy if surge pricing increased prices. Having said that, they might have to deal with more unhappy customers.

Show threadMatt BlazeFeb 29, 2024
@merc @rbreich @pluralistic Yes, and this is why it's different from Uber. Uber's surge pricing at least gives some benefit to the drivers, who collect some part of the higher fares. Wendy's workers are paid a fixed hourly wage.
Show threadMatt BlazeFeb 29, 2024
@merc @rbreich @pluralistic and the pricing goal is to run at capacity, so the workers work at capacity, no matter what the price is.