Wendy’s: A “Frosty” Reception for Dynamic Pricing

Name: Wendy’s: A “Frosty” Reception for Dynamic Pricing (English version)
SKU: W37154

Fabrizio Di Muro

Product #:W37154

Supplier:Ivey

Discipline:Marketing

Setting:United States, 2024

Details:Case (PDF) • 9 pages • 2024-06-19

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In February 2024, Wendy’s CEO Kirk Tanner announced that the company planned to test dynamic pricing at select US locations sometime in 2025. However, the company’s announcement generated a significant negative public reaction, to such an extent that Wendy’s felt compelled to offer US$1 burgers as part of a special “March Madness” promotion. As the company looked toward 2025, how should Wendy’s CEO Kirk Tanner plan to implement dynamic pricing in its stores?

Learning Objectives

After working through the case and assignment questions, students should be able to achieve the following objectives:

Understand that pricing has both economic and psychological components
Discuss why dynamic pricing has become popular in several industries
Understand how promotion and pricing are linked
Determine how a company should implement dynamic pricing
Evaluate whether dynamic pricing will become commonplace in the fast-food industry

Wendy’s: A “Frosty” Reception for Dynamic Pricing

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Learning Objectives