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Wendy’s, a popular fast-food chain, is planning to change their prices throughout the day.
This idea is called “dynamic pricing”, and Wendy’s will start testing it in 2025. They are spending $20 million on new digital menus for their US restaurants that can adjust prices automatically.
Wendy’s CEO, Kirk Tanner, said the new menus will help them test dynamic pricing. They will also test AI that changes the menu and makes suggestions to the customer. He believes these digital menus will make ordering more accurate, improve working conditions for employees, and increase sales.
Wendy’s says that dynamic pricing does not mean the prices will be higher when the restaurant is busy. The new menus could offer discounts when it’s not so busy to benefit customers.
The digital menus were first announced for Wendy’s restaurants in 2022. Now, customers are starting to see them at restaurants, but still without dynamic pricing.
Dynamic pricing is used by airlines, hotels, and companies like Uber. Not many restaurants use it because it’s hard to change the menus often. But with digital menus, fast food chains can change prices easily. Wendy’s thinks they will sell $2 billion in digital orders this year. They are also spending $15 million to improve their app.
McDonald’s has already tried dynamic pricing. However, customers were not happy about the prices changing often. They also didn’t like seeing different prices at different McDonald’s restaurants.
Jonathan Maze, an editor for a restaurant magazine, thinks dynamic pricing could change the restaurant industry. If Wendy’s plan works, other restaurants might try it too.
Vocabulary
- Popular – Liked by many people; something many people like
- Fast food – Food that is made and served quickly, like burgers and fries;
- Chain – a business that is part of a larger company and has many locations, often in different cities or countries (McDonald’s is a fastfood chain)
- Throughout – All the way through, from beginning to end; the whole of; the duration of; during the whole period of time
- Dynamic pricing – Changing prices based on different things, like how busy a place is
- Test – to do something to learn if it is safe, works correctly, etc.; try out
- Million – 1,000,000 = one-million
- Digital – using numbers and codes in a system or computer to make things happen; Using computers or technology to store or process information
- Adjust – to move or change to get a better result; modify; tune;
- CEO (Chief Executive officer) – the top person in a large company; president; boss
- Artificial intelligence (AI) – human intelligence in a machine; A system that can think and learn like a human; See more here.
- Suggestion – An idea or recommendation;
- Order – Asking for something, like food at a restaurant; Asking for something to be made or delivered
- Accurate – Correct; exact
- Working conditions – how safe, comfortable, and well-equipped a workplace is; The way a job is, like how safe it is or how long you work each day
- Employee – a person who is paid to work for a company or organization
- Busy – crowded; many people doing something at the same time; When a lot of things are happening or a lot of people are going somewhere
- Offer – to provide; to supply; to propose; to make something available for sale or use; to suggest
- Discount – A reduced price; When the price of something is lowered
- Benefit – to get an advantage; to gain something positive; to have a good effect
- Announce – share information openly; to tell the public; to make a statement; to report
- Airline – a company that moves people by airplane (Lufthansa, Etihad, KLM, Delta, etc.)
- Billion – 1,000,000,000 = one-billion
- Order – the food, drinks, or things you asked to buy
- App (application) – A computer program/application that can be used on a mobile phone or tablet
- Editor – Someone who checks and corrects written work;
- Industry – business field; area of work or business; type of business
Quiz
Discussion Questions
- Do you think dynamic pricing is a good idea for fast food restaurants? Why or why not?
- What are some potential benefits and drawbacks of dynamic pricing for the restaurant? And for the customers?
- How might dynamic pricing affect employees at Wendy’s?
- Do you think dynamic pricing will become more common in the restaurant industry in the future? Why or why not?
- English teachers looking for teaching ideas, check out my post on using easy news articles for lessons.
- English learners looking for study ideas, check out my post on using news stories for English practice.
Original Story
Fill-in-the-Blank Listening Practice
Wendy’s, a _____ fast-food chain, is planning to change their prices throughout the _____.
This idea is called “dynamic _____”, and Wendy’s will start testing it in 2025. They are spending $_____ million on new digital _____ for their US restaurants that can adjust prices automatically.
Wendy’s _____, Kirk Tanner, said the new menus will help them _____ dynamic pricing. They will also test AI that _____ the menu and makes suggestions to the customer. He believes these _____ menus will make ordering more accurate, improve working _____ for employees, and increase sales.
Wendy’s _____ that dynamic pricing does not mean the prices will be higher when the restaurant is _____. The new menus could offer _____ when it’s not so busy to benefit customers.
The digital menus were first _____ for Wendy’s restaurants in _____. Now, customers are starting to see them at restaurants, but still _____ dynamic pricing.
Dynamic pricing is used by _____, hotels, and companies like Uber. Not many restaurants use it because it’s _____ to change the menus often. But with digital menus, fast food chains can change _____ easily. Wendy’s thinks they will sell $_____ billion in digital orders this year. They are also spending $15 million to _____ their app.
McDonald’s has already _____ dynamic pricing. However, customers were not happy _____ the prices changing often. They also didn’t like _____ different prices at different McDonald’s restaurants.
_____ Maze, an editor for a restaurant magazine, thinks dynamic pricing _____ change the restaurant industry. If Wendy’s plan _____, other restaurants might try it too.
