fast food

amid-two-wrongful-death-lawsuits,-panera-to-pull-the-plug-on-“charged”-drinks

Amid two wrongful death lawsuits, Panera to pull the plug on “charged” drinks

Zapped —

A large previously contained nearly as much caffeine as the FDA’s daily safe limit.

Dispensers for Charged Lemondade, a caffeinated lemonade drink, at Panera Bread, Walnut Creek, California, March 27, 2023.

Enlarge / Dispensers for Charged Lemondade, a caffeinated lemonade drink, at Panera Bread, Walnut Creek, California, March 27, 2023.

Panera Bread will stop selling its highly caffeinated “Charged” drinks, which have been the subject of at least three lawsuits and linked to at least two deaths.

It is unclear when exactly the company will pull the plug on the potent potables, but in a statement to Ars Tuesday, Panera said it was undergoing a “menu transformation” that includes an “enhanced beverage portfolio.” The company plans to roll out various new drinks, including a lemonade and tea, but a spokesperson confirmed that the new flavors would not contain added caffeine as the “charged” drinks did.

The fast-casual cafe-style chain drew national attention in 2022 for the unexpectedly high caffeine levels in the drinks, which were initially offered as self-serve with free refills.

The versions of the drinks at the time were labeled as containing 389 mg to 390 mg of caffeine in a large, 30-ounce drink, while the other option, a 20-ounce regular, contained 260 mg. According to the Food and Drug Administration, a limit of 400 mg of caffeine per day is generally considered safe for healthy adults, but a smaller amount is advised for adults with certain medical conditions or who are pregnant or breastfeeding. A standard 8-ounce cup of coffee generally contains between 80 to 100 mg of caffeine, while a Red Bull energy drink also contains 80 mg.

In September 2022, Sarah Katz, a 21-year-old with a heart condition, died after allegedly drinking one of the highly caffeinated lemonades from a restaurant in Philadelphia. In a wrongful death lawsuit filed against Panera in October 2023, Katz’s parents alleged that she didn’t know the drink contained potentially dangerous amounts of caffeine. Rather, she was “reasonably confident it was a traditional lemonade and/or electrolyte sports drink containing a reasonable amount of caffeine safe for her to drink,” the lawsuit stated.

Also in October, Dennis Brown, a 46-year-old man in Florida, went into cardiac arrest while walking home from a Panera, where he allegedly drank a charged lemonade and then had two refills. His family filed a lawsuit against Panera in December.

According to CNN, a third lawsuit was filed in January by a woman who claims she developed an irregularly fast heartbeat and palpitations after drinking the two-and-a-half caffeinated lemonades in April 2023. “The primary reason she ordered this drink was because it was advertised as ‘plant-based’ and ‘clean,’” the complaint states.

In a statement to Ars in December, Panera said it “stands firmly by the safety of our products.” However, the company increased warnings on the drinks last year and moved containers behind the counter in some stores. Most notably, it also reduced the labeled amount of caffeine in the drinks. The current menu lists the “Charged Sips” drinks as having between 155 mg to 302 mg, depending on the flavor and size.

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Wendy’s will experiment with dynamic surge pricing for food in 2025

Sir, this is Wendy’s new AI-powered menu —

Surge pricing test next year means your cheeseburger may get more expensive at 6 pm.

A view of a Wendy's store on August 9, 2023 in Nanuet, New York.

Enlarge / A view of a Wendy’s store on August 9, 2023, in Nanuet, New York.

American fast food chain Wendy’s is planning to test dynamic pricing and AI menu features in 2025, reports Nation’s Restaurant News and Food & Wine. This means that prices for food items will automatically change throughout the day depending on demand, similar to “surge pricing” in rideshare apps like Uber and Lyft. The initiative was disclosed by Kirk Tanner, the CEO and president of Wendy’s, in a recent discussion with analysts.

According to Tanner, Wendy’s plans to invest approximately $20 million to install digital menu boards capable of displaying these real-time variable prices across all of its company-operated locations in the United States. An additional $10 million is earmarked over two years to enhance Wendy’s global system, which aims to improve order accuracy and upsell other menu items.

In conversation with Food & Wine, a spokesperson for Wendy’s confirmed the company’s commitment to this pricing strategy, describing it as part of a broader effort to grow its digital business. “Beginning as early as 2025, we will begin testing a variety of enhanced features on these digital menuboards like dynamic pricing, different offerings in certain parts of the day, AI-enabled menu changes and suggestive selling based on factors such as weather,” they said. “Dynamic pricing can allow Wendy’s to be competitive and flexible with pricing, motivate customers to visit and provide them with the food they love at a great value. We will test a number of features that we think will provide an enhanced customer and crew experience.”

A Wendy's drive-through menu as seen in 2023 during the FreshAI rollout.

Enlarge / A Wendy’s drive-through menu as seen in 2023 during the FreshAI rollout.

Wendy’s is not the first business to explore dynamic pricing—it’s a common practice in several industries, including hospitality, retail, airline travel, and the aforementioned rideshare apps. Its application in the fast-food sector is largely untested, and it’s uncertain how customers will react. However, a few other restaurants have tested the method and have experienced favorable results. “For us, it was all about consumer reaction,” Faizan Khan, a Dog Haus franchise owner, told Food & Wine. “The concern was if you’re going to raise prices, you’re going to sell less product, and it turns out that really wasn’t the case.”

The price-change plans are the latest in a series of moves designed to modernize Wendy’s business using technology—and increase profits. In 2023, Wendy’s began testing FreshAI, a system designed to take orders with a conversational AI bot, potentially replacing human workers in the process. In his discussion, Tanner also discussed “AI-enabled menu changes” and “suggestive selling” without elaboration, though the Wendy’s spokesperson remarked that suggestive selling may automatically emphasize some items based dynamically on local weather conditions, such as trying to sell cold drinks on a hot day.

If Wendy’s goes through with its plan, it’s unclear how the dynamic pricing will affect food delivery apps such as Uber Eats or Doordash, or even the Wendy’s mobile app. Presumably, third-party apps will need a way to link into Wendy’s dynamic price system (Wendy’s API anyone?).

In other news, Wendy’s is also testing “Saucy Nuggets” in a small number of restaurants near the chain’s Ohio headquarters. Refreshingly, they have nothing to do with AI.

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