Burger chain Wendy’s to test menu with AI controlled prices
Listen to the story (American accent)
Wendy’s, a fast food restaurant, will change their menu prices many times in a day. This is called “dynamic pricing”, and Wendy’s will try it in 2025.
They are buying new digital menus for $20 million. These menus can change prices automatically.
Wendy’s CEO, Kirk Tanner, said these menus will help them test dynamic pricing. They will also try AI that changes the menu and recommends different food to the customer. He thinks these menus will be easier for customers and workers. He also thinks the menus will help sell more food.
Wendy’s said that dynamic pricing does not mean prices will go up when it’s busy. The new menus could show cheaper prices when it’s not busy.
Dynamic pricing is used by airlines, hotels, and companies like Uber. Not many restaurants use it yet.
McDonald’s has already tried dynamic pricing. But, customers were not happy because prices changed a lot. They also didn’t like different prices at different McDonald’s.
Vocabulary15 words
- Fast food
- Food that is made and served quickly, like burgers and fries;
- Price
- How much money something costs
- Dynamic pricing
- Changing prices based on different things, like how busy a place is
- Digital
- using numbers and codes in a system or computer to make things happen; Using computers or technology to store or process information
- Million
- 1,000,000 = one-million
- Automatically
- when something happens on its own, without a person making it happen; doesn’t need an operator or a person
- CEO (Chief Executive officer)
- the top person in a large company; president; boss
- Test
- to do something to learn if it is safe, works correctly, etc.; try out
- Artificial intelligence (AI)
- human intelligence in a machine; A system that can think and learn like a human; See more here.
- Recommend
- to suggest; to say that something is good or right for another person
- Customer
- A person who buys things from a store or business
- Sell
- To give something in exchange for money; to give a product or service and get money for it
- 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
- Show
- To display or present something; to share
- Airline
- a company that moves people by airplane (Lufthansa, Etihad, KLM, Delta, etc.)
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
Wendy’s, a fast _____ restaurant, will change their menu prices many _____ in a day. This is called “dynamic pricing”, and Wendy’s _____ try it in 2025.
They are buying new _____ menus for $20 million. These menus can _____ prices automatically.
Wendy’s _____, Kirk Tanner, said these menus will help them test _____ pricing. They will also try AI that changes the _____ and recommends different food to the _____. He thinks these menus will be easier for customers and _____. He also thinks the menus will help _____ more food.
Wendy’s said that dynamic pricing _____ not mean prices will go up when it’s busy. The new menus _____ show cheaper prices when it’s not _____.
Dynamic pricing is used by _____, hotels, and companies like Uber. Not many _____ use it yet.
McDonald’s has _____ tried dynamic pricing. But, customers were not happy because prices _____ a lot. They also didn’t like different prices at _____ McDonald’s.
Discussion questions
- Do you think dynamic pricing is a good idea for fast food restaurants? Why or why not?
- What are some good points and bad points of dynamic pricing for the restaurant? And for the customers?
- What do you think about AI suggesting different foods to customers?
- Do you think dynamic pricing will become more common at restaurants?
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