Wendy’s landed in hot water this week, and Burger King wasted no time taking advantage.
Earlier this month, Wendy’s CEO Kirk Tanner mentioned on an earnings call that the chain plans to pilot digital menu boards featuring “dynamic pricing.” Those remarks circulated widely online this week and drew considerable criticism. Many media outlets characterized the plan as surge pricing, likening it to the pricing models used by ride-hailing services such as Uber and Lyft.
Wendy’s has since pushed back on that interpretation, saying it never used the phrase “surge pricing.” Rather than increasing costs during busy periods, the company explained it would leverage artificial intelligence to promote different menu items at various times of day and to apply discounts during slower stretches.
Even so, Burger King joined the conversation. The fast-food chain is handing out free Whoppers through Friday.
“Surge pricing? That’s a new one. Good thing the only thing surging at BK is our flame!” the company said. “We don’t believe in charging people more when they’re hungry.”
How to Score a Free Whopper
You can claim a complimentary Whopper through Friday, March 1, with a $3 purchase. To redeem the deal, you must place an order ahead using the BK App or bk.com. You’ll also need a Royal Perks account, which only takes a few minutes to create.
See the full terms and conditions of the promotion here.
What Is Surge Pricing?
Surge pricing refers to charging customers more when demand outstrips supply — typically during peak periods. Ride-hailing apps like Uber and Lyft are the most well-known examples of surge pricing in action. That’s why a ride from the bar home at 2 a.m. can cost more than one at 2 p.m.
What Is Dynamic Pricing?
Dynamic pricing means adjusting prices in response to external variables such as demand trends, seasonality and supply shifts.
Retailers like Amazon use dynamic pricing — their algorithms regularly reassess and change prices. Airlines do the same, which helps explain why midweek flights tend to be less expensive than bookings on a Friday.
Are Surge Pricing and Dynamic Pricing the Same?
No — though surge pricing is a form of dynamic pricing.
Surge pricing specifically raises prices based on supply-and-demand spikes. Dynamic pricing more broadly refers to alterations in price based on external factors and does not always mean higher costs; it can include discounts or other adjustments as well.
Casey Monroe is the Managing Editor of Savinly.
