Burger King And Wendys Are In A Customer Battle

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Summary

➡ Wendy’s and Burger King are in a competition to attract more customers. Wendy’s plans to use dynamic pricing, offering discounts during slower times of the day. In response, Burger King gave out free Whoppers for three days. Both companies are trying to adapt to rising costs and labor shortages.

Transcript

Hey, everybody, economic ninja here. I hope you’re doing great. We’ve got some burger wars to talk about between Wendy’s and Burger King, and it’s going to get very interesting as prices keep rising, as employees keep being hard to find and more expensive to hold on to. Right? And the invention of the machines flipping burgers for us. These companies are on a path to destruction if they don’t take out their competitors.

And something really interesting happened the other day. Wendy’s announced dynamic pricing and Burger King responded by giving out free whoppers for three days. Now, they just finished this campaign yesterday, and I want to talk about that because they wanted to shade, as this story puts it, Wendy’s dynamic pricing campaign. So Wendy’s clarified that their new digital menu boards will offer discounts during slower times of the day rather than raise prices during peak hours.

It says Burger King is giving out free burgers for a limited time. In a not so subtle clapback at Wendy’s, the home of the Whopper announced on Wednesday that from February 20 eigth to March 1, customers can get a free whopper or vegetarian impossible whopper. Who would want to eat sometimes in the middle of a story, you just got to sit there and who would want to eat that? Can you imagine what’s in these burgers already? And then it’s like, well, let’s make a fake one.

You’re like, wait a minute, aren’t all the other ones fake? You’re like, put down below. Which company, in your opinion, makes the fast food the best fast food burger chain burger out there. I’m going to throw mine in right now. In and out. Let’s get back to the story. So it says they’re going to give away the free whoppers. The vegetarian impossible Whopper, because it’s impossible, tastes good.

With a purchase of $3 or more on their mobile app, the deal can be used once per day from the offers tab in their app or BK. com, in response to Wendy’s announcement that they would be implementing dynamic pricing in 2025. So it’s still a ways out, right? Maybe they shouldn’t have spent all that money on the free whoppers. Okay, we don’t believe in changing guests or, sorry, in charging guests more when they’re hungry, Burger King wrote in a press release announcing the Whopper freebie.

Okay, now let’s just throw this out there real quick. Wendy’s said that they were going to offer discounts when things are slower. So that means that people aren’t as, I guess you could say people aren’t as hungry at a certain time of day. So Wendy said, oh, we’ll give you a discount so then you don’t have to wait in line. Maybe people will show up at different times.

Whatever. So Burger King went out and said we’re going to spend a bunch of money on free burgers and announce this. I’m going to repeat this again. We don’t believe in charging guests more when they’re hungry. Okay, Burger King, you should fire CEO because that was bad because that’s not what they’re doing. But I love making fun of this kind of stuff. Surging pricing, surge pricing. Well, that’s new, the company added.

Good thing, only good thing. The only thing surging at BK is our flame. No, the only thing surging BK at your place is not understanding what your competition is doing. This is not looking good for Burger King, everyone. Wendy’s made headlines on Tuesday after CEO Kirk Tanner spoke in an earnings call earlier this month, and he said we will begin testing more enhanced features like dynamic pricing and day part offerings, along with AI enabled menu changes and suggestive selling, said Tanner.

A Wendy’s representative confirmed two people early on Tuesday with the new digital menus, prices could change depending on factors like time of day and weather. Although many interpreted this announcement to mean that the new pricing model will operate similarly to how ride sharing apps like Uber and Lyft set their prices during increased demand, a practice referred to as surge pricing, a Wendy’s representative clarified to people later on Tuesday that the company is not implementing this policy.

So just to throw out a couple of things, everyone in business understands this, or most people except for, I guess, Burger King, is that even in times when you’re going to offer your highest price point, your highest price point, during times of really heavy sales, you’re treading a very dangerous line of if the price is too hot and it’s way higher than your competitors, you risk losing that customer.

A customer acquisition cost is a very important line item in a lot of marketing, advertising budgets, and so that’s one thing you’ve got to take into account. Now, when you drop your prices and you offer sales during times of slow prices, times, that’s a good deal. I love this idea of the weather, though, because I’m just going to go outside and dip the thermometer outside of the wendy’s AI machine into an icy water jug.

So it starts offering discounts in a few minutes because it’s too cold for people to come shopping for burgers. But you see what I’m saying it’s a totally fluid thing and it’s really fun when you watch like Wendy’s competitor Burger King coming out screaming and yelling and blowing a bunch of money. I guess this also could be some corporate espionage. Or you could sit there and say, wendy’s could go, hey, let’s try and figure out how to get Burger King to go broke by blowing a bunch of money, screaming and yelling because they’re mad that we thought of the idea before them.

Here we go. So great quote. We have no plans to do that now. This is coming from wendy’s and would not raise prices when our customers are visiting us most, the spokesperson said in a new statement. Any features we may test in the future would be designed to benefit our customers and restaurant crew members. Digital menu boards could allow us to change the menu offerings at different times of the day and offer discounts and value offers to our customers more easily, particularly in the slower times of days.

It says here, I just think it’s really important to understand this, that things are heating up so bad. We’re not talking about the flame broiled vegetarian burger from Burger King, that you’re going to see more attacks going on between companies. It’s like their last ditch effort. Things are getting bad and we’re going to see more and more store closings, more and more people getting laid off because they’re trying their hardest to attract more customers.

And right now the battle has begun. And I guess you could call this one the battle burgers. So let me know down below, hashtag your favorite burger joint in America, your favorite chain. I’d love to hear about it. I’m an in n out guy that’s just know I was born and raised in do. I am a little partial to them. So hope you guys have a great day.

The economic ninja is out now just stand by while I figure out how to turn this thing off. Awkward. .

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