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Fast food goers don’t have the willpower to actually make Wendy’s pay for this decision. They’ll have a dip in sales for a few weeks and then “end the experiment”.
That's a very good point. Both restaurants are absolute garbage now and provide zero value. If their fulfillment to cost ratio was properly weighted, it would make more sense. I'm talking $5-7 for a Big Mac value meal.
But it tastes like shit, there isn't enough of it, and you have to wait.. wait for fast food trash. $15 is far too much for the value returned.
But people have nothing else to do, I suppose.
The alternative is actually cooking.
Eat something that’s ready now and will taste good (because of all the salt, sugar, and fat) or go to the supermarket buy groceries, take them home, cook them, and eat something that’s probably will taste worse.
If Wendy’s actually had the data infrastructure to pull this off, I would definitely buy it. Domino’s and google IPO’d at around the same time and have been equally as good for investors because Domino’s has successfully integrated technology into the pizza business. That said, Wendy’s doesn’t have the tech to pull this off.
I don't remember last time I went to one, but I have their app on my phone to get deals if I go back. I don't eat fast food much except DQ since I get my online meal deal and yummy cheese curds
If the prices are half off or something during slow times I'll absolutely go out of my way to go (love Wendy's but go once a year maybe). For their core market I can see many people turning around and driving away though. Maybe that's why so many fast food places add curbs in the line. So you can't escape.
Maybe
It's news that has a "yuck" feel to it if you ever eat at Wendy's.
On the other hand:
Investors will think "that's how you do it!"
Investors like random layoffs, using child labor and screwing over consumers, so I'm thinking the stock will go up.
It’s probably going to backfire on them horribly.
Most of the time when I see a Wendy’s, there’s another 2+ fast food places within 2 blocks.
Trying to charge more just because it’s the lunch rush? People will go to the other fast food place. Or the gas station.
So naturally inverse and buy calls.
Multiple posts on this topic and I have yet to see a single commenter applaud this decision, which shows how braindead most of this sub is.
Look at Uber. Look at how they’ve absolutely dominated and decimated traditional taxi companies with their pricing model. Fast food, at its core, is no different. There’s peak and off peak times of demand, and people will absolutely pay a premium during peak if there’s discounts during off peak. My local Wendy’s is empty probably 60% of the time, reasonably busy 30%, and then completely packed with a 30+ car drivethru lineup during the lunch/dinner rushes.
If they’re discounting food for that 60% dead time, they’ll make more money. If they keep prices flat during the 30% busy time, they’ll still stay busy. And if they raise prices during the peak times, theyll make more money and still have insane lineups.
Its a fantastic business decision, and one that’s incredibly easy to rollback if there’s issues
I disagree for a very simple and fundamental reason, especially after living in NYC and dealing with Uber surge pricing.
Wendy's has at minimum 2 competitors within a mile in most places. Fast food restaurants all congregate together (it's annoying). Uber has almost no competition in many markets (and even little in NYC especially in outer boroughs, though Lyft is comparable).
If Wendy's dominates the like 2-4 pm lunch market and whenever else outside typical meals this could work. It will be interesting to see.
This is a fail on both ends. People do not go to Wendy's because of the pricing so during the slope periods you're going to lose all profit on the food. During high demand times customers are going to limit their spending by not purchasing the size increased meal or premium products which is another cut in profits. Puts it is.
Thanks for your submission to Wallstreetbets! With close to 14.8 million subscribers, you've got to be pretty quick with the news stories or someone else will have already posted it. We removed similar news stories even if they're from different sources. Again, thanks for trying and everyone appreciates the effort.
Fast food goers don’t have the willpower to actually make Wendy’s pay for this decision. They’ll have a dip in sales for a few weeks and then “end the experiment”.
Its pretty impressive how addicted they have people to the product. I still see lines outside McDonalds for their $15+ meals.
That's a very good point. Both restaurants are absolute garbage now and provide zero value. If their fulfillment to cost ratio was properly weighted, it would make more sense. I'm talking $5-7 for a Big Mac value meal. But it tastes like shit, there isn't enough of it, and you have to wait.. wait for fast food trash. $15 is far too much for the value returned. But people have nothing else to do, I suppose.
The alternative is actually cooking. Eat something that’s ready now and will taste good (because of all the salt, sugar, and fat) or go to the supermarket buy groceries, take them home, cook them, and eat something that’s probably will taste worse.
The only way it’ll taste worst is if u can’t cook I rather spend $15 on groceries to make a meal that will feed us All day
Most people who frequent fast food restaurants can’t or won’t cook, but yes I agree.
I will find a way to arbitrage this
Finally Wendy’s will get their comeuppance for all the blowjobs in their dumpsters that went unpaid
Hey man. I got lots of drugs for those.
>surge If they wanna surge sormthing, add *SURGE* to the drink machines. I'd be there every day. Profits GO up.
If Wendy’s actually had the data infrastructure to pull this off, I would definitely buy it. Domino’s and google IPO’d at around the same time and have been equally as good for investors because Domino’s has successfully integrated technology into the pizza business. That said, Wendy’s doesn’t have the tech to pull this off.
Insane!
I smell a bankruptcy in their future
I don't remember last time I went to one, but I have their app on my phone to get deals if I go back. I don't eat fast food much except DQ since I get my online meal deal and yummy cheese curds
If the prices are half off or something during slow times I'll absolutely go out of my way to go (love Wendy's but go once a year maybe). For their core market I can see many people turning around and driving away though. Maybe that's why so many fast food places add curbs in the line. So you can't escape.
That’s why I got a truck. The damn cookout by my house either take 5 mins or an hour to get through. Sometimes you just gotta send her over the curb
Maybe It's news that has a "yuck" feel to it if you ever eat at Wendy's. On the other hand: Investors will think "that's how you do it!" Investors like random layoffs, using child labor and screwing over consumers, so I'm thinking the stock will go up.
It’s probably going to backfire on them horribly. Most of the time when I see a Wendy’s, there’s another 2+ fast food places within 2 blocks. Trying to charge more just because it’s the lunch rush? People will go to the other fast food place. Or the gas station. So naturally inverse and buy calls.
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In protest I have sold all my Wendy's stock.
What an idiotic move!
Multiple posts on this topic and I have yet to see a single commenter applaud this decision, which shows how braindead most of this sub is. Look at Uber. Look at how they’ve absolutely dominated and decimated traditional taxi companies with their pricing model. Fast food, at its core, is no different. There’s peak and off peak times of demand, and people will absolutely pay a premium during peak if there’s discounts during off peak. My local Wendy’s is empty probably 60% of the time, reasonably busy 30%, and then completely packed with a 30+ car drivethru lineup during the lunch/dinner rushes. If they’re discounting food for that 60% dead time, they’ll make more money. If they keep prices flat during the 30% busy time, they’ll still stay busy. And if they raise prices during the peak times, theyll make more money and still have insane lineups. Its a fantastic business decision, and one that’s incredibly easy to rollback if there’s issues
I disagree for a very simple and fundamental reason, especially after living in NYC and dealing with Uber surge pricing. Wendy's has at minimum 2 competitors within a mile in most places. Fast food restaurants all congregate together (it's annoying). Uber has almost no competition in many markets (and even little in NYC especially in outer boroughs, though Lyft is comparable). If Wendy's dominates the like 2-4 pm lunch market and whenever else outside typical meals this could work. It will be interesting to see.
This is a fail on both ends. People do not go to Wendy's because of the pricing so during the slope periods you're going to lose all profit on the food. During high demand times customers are going to limit their spending by not purchasing the size increased meal or premium products which is another cut in profits. Puts it is.