It’s been a busy few weeks for fast food’s favorite pigtailed franchise. If news of the menu price hikes and subsequent walkback didn’t reach your corner of the internet, here’s a quick recap of what happened: During an earnings call on February 15th, Wendy’s CEO Kirk Tanner told investors of the company’s plans to test “dynamic pricing and daypart offerings” in the year ahead. While the latter term refers to the practice of customizing digital menus for different times of day, the former term is, well, more ambiguous.
Many reporters and consumers equate dynamic pricing with surge pricing, especially because companies like Uber and Lyft already employ dynamic pricing to charge customers more when demand for rides is highest. Herein lies the root of the issue. Given the existing meaning of the phrase, Tanner’s comment implied that Wendy’s also planned to raise prices. Baconators and Spicy Chicken Nuggets, reporters assumed, would come with a lunch or dinner rush surcharge—right when the people need them most. Thus began the age-old cycle: reporters reported, the internet made memes, and the world unleashed its outrage. One X user posted a picture of the inside of his fridge stocked with Wendy’s to prepare for the impending squeeze. Others joked about the complicated process of calculating the cost of a Wendy’s meal, pretending to bid for Baconators on a trading platform.
By Tuesday, February 27th, Wendy’s published a statement on their blog clarifying their plans. The restaurant chain never intended to raise prices when demand is highest, the statement said. They went even further, insisting that any features they test in the future would be designed to benefit their customers and restaurant crew members. Now, they’re selling $1 Dave’s Single cheeseburgers for all of March Madness (perhaps to regain some good will?).
Could Wendy’s have saved itself from the media frenzy and PR damage the “dynamic pricing” situation caused? As marketing experts, we sure think so. From our team to yours, here are three lessons from the Wendy’s pricing debacle.
1. Matters of semantics…matter
At the heart of this confusion is the phrase “dynamic pricing.” While many people interpreted this phrase to mean price fluctuations—both up and down—Wendy’s asserted they only planned to lower prices by offering discounts during slow periods of the day. Whether Wendy’s actually intended to offer discounts or only changed its tune after backlash, we’ll likely never know. But we do know that this whole conversation could’ve been avoided by giving proper consideration to the term beforehand.
It also underscores a golden rule in the world of communications: no jargon. It’s a practice we closely adhere to at MarketSmiths. When we meet with clients or subject matter experts, we break the most complicated topics down into their simplest components so we can reconstruct them in an accessible manner later on. Our ears are also on alert for any buzzwords so we can question stakeholders and arrive at the true meaning behind them.
While it’s helpful to have an outside party come in with a fresh perspective, you can develop this practice within your own business, too. Look out for words or phrases that are internally meaningful to your company or industry but ambiguous to others, and consider adding them to your style guide so others know to avoid them. If you jot down some alternative verbiage for each one, even better.
2. Prioritize your customers’ perspectives
The Wendy’s situation reminded us of the importance of keeping the customer in mind at all times. The earnings call might’ve been geared toward an audience of investors who wouldn’t have balked at the insinuation of price increases, but customers felt betrayed when word got back to them. That’s why looking through the lens of a customer can be an excellent exercise.
Before public meetings, talks, or presentations, read through your content with your customer in mind—or loop in a friend or family member outside the company who can provide that outside perspective. What do your customers value? How would they feel about the message you’re delivering based on those values? If you have customer personas, these can be a helpful tool to refresh your memory on the intricacies of who you’re talking to—and what they value most..
3. Lean on your copywriters and content strategists
Finally, the Wendy’s situation highlighted why professional copywriters and content strategists are as essential as ever. We’re trained to sniff out any unclear, inaccurate or controversial language. Running your talking points past your marketing team before you present—or better yet, having them write the first draft—can reduce myopia and catch errors before they enter the public domain.
As Wendy’s demonstrated, the time and resources required to lean more heavily on your writing team will benefit your bottom line in the long run. Otherwise, you might find yourself buying up Dave’s Single cheeseburgers for everyone in the country.
When you’re ready to invest in your own company image, the team at MarketSmiths is happy to help. Reach out for assistance with talking points, presentations, memos, and more.
