Wendy's is gearing up to introduce surge pricing similar to popular ride-sharing services like Uber and Lyft, as the company prepares to implement digital menus across all its US restaurants by 2025, according to its February earnings call.  

Wendy's Will Introduce Surge Pricing by 2025

According to Gizmodo, this new pricing model will see menu items such as burgers and Frosties subject to "dynamic prices" that will vary based on demand fluctuations. However, the cost will be higher during times of increased demand.

During the earnings call on February 15, Wendy's CEO Kirk Tanner announced plans to commence testing dynamic pricing features as early as 2025.

"Beginning as early as 2025, we will begin testing more enhanced features like dynamic pricing... We are planning to invest approximately $20 million to roll out digital menu boards to all US company-operated restaurants by the end of 2025," Tanner noted.

READ NEXT: Wendy's Is Sweetening Its Breakfast Lineup With a New Treat From Cinnabon

Surge Pricing in the Food Industry

Adopting digital menu boards presents an opportunity to adjust prices dynamically, a feature not available with traditional static menus. Surge pricing, a familiar concept in the ride-sharing industry, is relatively new in the fast-food industry, with Wendy's poised to pioneer its application. 

These fluctuating prices will respond to factors such as demand, supply, competitor pricing, and other external variables facilitated by algorithmic calculations. Wendy's has yet to provide the details as to how severely prices could fluctuate.

READ MORE: KFC-Parent Yum Brands Sales Miss Wall Street Expectations Amid Cautious US Consumer Spending, Middle East Conflict