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Wendy’s Lower Off-Peak Pricing Won’t Really Help Poor Customers

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Wendy’s plans to introduce more digital menu boards in its restaurants and drive-thrus, which will allow franchisees to adjust prices at various times throughout the day. Several media outlets erroneously reported that menu item costs would surge like Uber rides during high-demand times. The fast food giant clarified that prices won’t quite skyrocket in the same way. Instead, customers would pay a lower price for breakfast at 10am than they would during the 7:30am rush hour. A Frosty would be cheaper at a time like 2:30 in the afternoon when customer traffic is sluggish. This variable pricing strategy could potentially increase Wendy’s profits, but low-income consumers would benefit less.

I grew up poor – thankfully, I no longer am. But most of my family still is, hence my deep commitment to socioeconomic equity and affordability. I remember how exciting and special it was to have Burger King once each month when I was a kid; that was the only time we could afford to eat out. Dining at fancy sit-down restaurants was beyond our budget. Today, my final meeting ended at a somewhat odd time. My husband and I eat dinner at 7:30 most nights, but I was hungry at 4:50 today. I did something I don’t usually do: I stopped at McDonald’s to buy a cheeseburger. That basic cheeseburger cost me $3.16 today, inclusive of sales tax. That wasn’t the peak price – apparently, that’s what it now costs.

I don’t live in Beverly Hills, Bel Air, Brentwood, or San Marino, which are among the most expensive Los Angeles neighborhoods. The median household income of my community is around $85,000. Only about one-quarter of the people who live nearest me are white. There’s an abundance of fast food restaurants in predominantly Black and Latino neighborhoods – the lower the median incomes, the more not-so-healthy yet affordable food options there are. These have become known as “food swamps.” American Heart Association data show that people who reside in them are at higher risk of strokes and cardiovascular diseases. Poor people who take advantage of Wendy’s reduced prices must be careful to not consume too many low-cost fried chicken nuggets and other high-cholesterol foods — doing so could exacerbate health disparities, especially among low-income people of color.

To be sure, I don’t live in what qualifies as a food swamp or a food desert, contexts in which it’s nearly impossible to shop for nutritious options. It takes about 10 minutes to drive to our nearest Whole Foods, plus Hilltop (Issa Rae’s coffee shop and restaurant that is three minutes away from my house) has several healthy choices on its menu. If a cheeseburger costs $3.16 at the McDonald’s nearest me, imagine how burdensome this price point is for low-income customers here and elsewhere. Keeping fast food this high at peak times really is the same as price surging, even if Wendy’s remains committed to spinning a narrative about off-peak discounting.

If Wendy’s can afford to lower its prices at times during the day when traffic is relatively slower, why couldn’t it do so at all times? Many Americans are blaming the Biden Administration for food inflation. The President and his cabinet aren’t responsible for the corporate greed that compels one of the world’s biggest, most profitable fast food chains to make its menu items maximally more expensive at peak times. But perhaps the federal government could do more to regulate this through policy actions.

Low-income Americans shouldn’t be expected to wait until off-peak times to get hungry or shop for options they can afford. People who work an 8am to 5pm shift won’t be able to take advantage of 10am or 2pm discounts at their local Wendy’s. The unavailability of a discount at these times therefore is the same as a surge during peak hours.

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