Wendy’s, the popular fast-food chain, is set to introduce a dynamic pricing model similar to Uber’s surge pricing, where burger prices will fluctuate based on demand. The new system, announced by Wendy’s CEO Kirk Tanner, is scheduled to begin testing in 2025.

Under this pricing model, the cost of items such as the iconic Dave’s Single quarter pounder burger could increase by as much as $1 during peak hours, like lunchtime, and decrease by up to $1 during off-peak hours. To facilitate these constant pricing shifts, Wendy’s will be investing $20 million in high-tech digital menu boards, allowing real-time updates without incurring additional overhead costs.

Currently, the price of Wendy’s quarter-pound cheeseburger, Dave’s Single, varies by location. For example, the popular offering is priced at $5.99 in Newark, NJ, and $8.19 in Times Square. With the implementation of dynamic pricing, New Yorkers could potentially pay close to $10 for a cheeseburger during lunchtime, excluding additional items like drinks or fries.

However, the move towards dynamic pricing comes with potential risks. A survey by software company Capterra revealed that 52% of consumers consider dynamic pricing in restaurants as price gouging. This pricing strategy, also known as surge pricing, has been previously employed by rideshare apps like Uber and Lyft, as well as airlines.

While dynamic pricing can be controversial, Wendy’s is forging ahead with its plans to adapt to fluctuating demand and market conditions. With the fast-food industry facing challenges such as inflation, Wendy’s is taking a bold step to navigate the evolving landscape of consumer pricing.