Burger Math x AI Is Incoming

One of the United States’ largest fast food chains is running an AI pricing experiment - much like ride-sharing services - and it’s fair to say the announcement has been a PR disaster. But it also teaches us a broader lesson about marketing:

Just because it’s new, don’t assume everyone will love it.

Fast food chain, Wendy’s, spent $30 million on an AI menu that it wants to roll out in 2025. The new technology changes the prices of items depending on demand, to try and drive business during off-peak times.

Let’s dig into what this is and why it matters…

PR 101

If you don’t want people to associate your brand with a specific term, then avoid using that term in any social content or press release.

After consumers vented their fury at the AI menu announcement and the perceived price gouging, the burger chain said:

“Wendy’s will not implement surge pricing, which is the practice of raising prices when demand is highest. We didn’t use that phrase, nor do we plan to implement that practice.” 

There is zero consumer positivity for ‘surge pricing’ so if you don’t think that’s what you’re doing… probably don’t mention it?

Don’t Bullsh*t Customers

Due to the increased access to information, consumers have never been more well-informed. Yes, ‘dynamic pricing’ will make items cheaper during slower business hours, but don’t pretend that prices aren’t increased during busier times.

And use language that customers themselves use. Most of the world doesn’t use the word ‘dynamic’ in regular conversation, for example. A quick scan of social media platforms tells you exactly what today’s language actually looks like (note: I’m not suggesting dropping ‘skibidi’ in a media announcement).

First Mover Disadvantage

Sometimes it pays to be first, but often it doesn’t. To quote, The Week:

“Wendy’s dynamic pricing also presents a risk to their customer base. For Wendy’s concept to work, they will have to emphasize that their dynamic pricing will “lower prices at off-peak times” instead of raising prices during busy times, Steven Suranovic, an associate professor of economics at George Washington University, said to CBS News. “It can hurt to be the first to initiate, Suranovic said. “People have options - they can go to McDonald’s.”

Why does this matter for marketers?

With new trends, speed matters. Wait and it becomes old news; there is even risk of consumer backlash if you are the last brand to jump on a trend.

With new technology, it often pays to wait and let a competitor jump in first.