Marc Emmer, a respected voice on strategy and strategic planning, spoke to our Vistage group recently. During his session, Marc reminded the group of a very public—and very instructive—leadership misstep: Wendy’s 2024 “dynamic pricing” debacle.
It’s a powerful example but not because Wendy’s failed. Failure is inevitable for leaders who are doing meaningful work. The real lesson lies in what happened next.
The Wendy’s Case: A Strategic Idea, a Communication Failure
In February 2024, Wendy’s leadership announced during a quarterly earnings call that the company would be investing in digital menu boards to enable “dynamic pricing and menu offerings” beginning as early as 2025. The intent, as framed to investors, was flexibility—using technology to adjust pricing and promotions throughout the day.
What the public heard, however, was very different.
Media headlines quickly translated “dynamic pricing” into “surge pricing”—the idea that a hamburger would cost more at peak dinner hours than during slower periods. The backlash was immediate and pervasive. Social media erupted. Competitors mocked the move publicly. Customers were not happy.
Within days, Wendy’s was on the defensive. The company clarified that it never intended to raise prices during peak demand, only to offer discounts during slower periods. The company followed up with promotional offers to restore trust and goodwill. Whether the strategy itself was flawed is debatable. What is not debatable is this: The rollout was a failure—and a very public one.
Every Leader Will Blow It—If They’re Doing Anything Significant
If you’ve been leading long enough—and if you’re playing at a level that matters—you are going to fail. A contractor delivers a job that goes sideways. A manufacturer launches a product the market rejects. A CEO greenlights a strategy that looks great in the boardroom and terrible in the real world.
Failure is not a leadership defect. On the other hand, avoiding failure is often a sign you’re playing too small. What separates great leaders from mediocre ones is not whether they fail—but how they respond when they do.
What Great Leaders Do After a Major Blunder
Responding immediately and thoughtfully is key. Be intentional after a misstep by doing these things:
1. Own It—Quickly and Clearly. Great leaders resist the urge to explain, rationalize, or hide behind language. They acknowledge what happened in plain terms. Delay erodes trust faster than the mistake itself.
2. Take Responsibility Without Spreading Blame. The moment a leader points fingers—at marketing, the media, or “misinterpretation”—they lose credibility. Ownership builds authority. Deflection destroys it.
3. Listen Before You Act. After a failure, the instinct is to “fix” things fast. Strong leaders slow down just enough to truly hear customers, employees, and stakeholders. Listening signals respect—and often reveals the real issue.
4. Correct the Course, Not Just the Optics. Crisis PR without real change is theater. Leaders must address root causes—strategy, assumptions, incentives, or communication—not just the headline problem.
5. Extract the Lesson and Institutionalize It. The best leaders don’t just recover; they learn from their mistakes and put those lessons to use. They ask, “What did this expose about us?” “What should we do differently as we move forward?” And then they build better systems, so the lesson outlives the moment.
The Leadership Moment Comes After the Apology
Anyone can lead when the strategy works and the applause is loud. Leadership is tested after the misstep—after trust is shaken, after confidence wobbles, after the room goes quiet.
That is the moment when character shows up. Because in the end, your legacy as a leader won’t be defined by the fact that you failed. It will be defined by what you did next. And your people are always watching.