A social media backlash to media reports that said fast-food chain Wendy’s had plans to increase menu prices during its busiest hours shows a limit to where, when and for what U.S. consumers will trade more cash for convenience.
I don’t think it’s either of those so much as intolerance to openly price gouging.
Higher prices reduce demand (or at least overall sales). That’s basic economics and we have seen a lot of that over the past 3 years.
We’ve seen scarcity lead to increased prices (see eggs). This also led to reduced sales but not outrage, because most consumers understand how a chicken disease can lead to the loss of huge portions of egg laying chickens and how an event like that can lead to temporary price increases.
Even with Uber surge pricing, while it does indeed piss people off and reduce demand, even those who hate it can at least understand the principle that some of that increase is passed on to the drivers as an incentive to get more drivers to serve areas and times with high demand. You’re still seeing the economic function of a price increase, but at least some of it is going toward a measure to mitigate the issue.
But in this case there’s no factor that makes a burger at noon cost Wendy’s any more than a burger at 3pm. I think that’s where the outrage comes from. It’s Wendy’s basically saying, “We’re increasing prices at this time because we like money.”
Are they paying employees more at surge times? Is their food more expensive to buy and prepare at those times? Are they increasing staffing for a few hours to ensure that wait times don’t increase?
Nah. It’s still the same old thing on their end, they’ve just decided they want more money.
I don’t think it’s either of those so much as intolerance to openly price gouging.
Higher prices reduce demand (or at least overall sales). That’s basic economics and we have seen a lot of that over the past 3 years.
We’ve seen scarcity lead to increased prices (see eggs). This also led to reduced sales but not outrage, because most consumers understand how a chicken disease can lead to the loss of huge portions of egg laying chickens and how an event like that can lead to temporary price increases.
Even with Uber surge pricing, while it does indeed piss people off and reduce demand, even those who hate it can at least understand the principle that some of that increase is passed on to the drivers as an incentive to get more drivers to serve areas and times with high demand. You’re still seeing the economic function of a price increase, but at least some of it is going toward a measure to mitigate the issue.
But in this case there’s no factor that makes a burger at noon cost Wendy’s any more than a burger at 3pm. I think that’s where the outrage comes from. It’s Wendy’s basically saying, “We’re increasing prices at this time because we like money.”
Are they paying employees more at surge times? Is their food more expensive to buy and prepare at those times? Are they increasing staffing for a few hours to ensure that wait times don’t increase?
Nah. It’s still the same old thing on their end, they’ve just decided they want more money.
It’s intolerance to blatant greed.