New York Post’s Post

Surge Pricing Is Coming to More Menus Near You While some consumers tend to resent surge pricing, as Wendy’s discovered last month, they like happy-hour discounts and other deals at slow times. “People know how much a small fry or burger costs. If they mess with that formula, you have to be careful.” #FastFood #GoodFoodQuickly #restaurant #SurgePricing #business #management

Interesting read from The Wall Street Journal to think about with your morning coffee ☕ Restaurants experiment with technology that can move prices up and down based on demand and staffing; ‘a little sales boost to offset our costs’. Is surge pricing a good thing for consumers... thoughts? #restaurants #restaurantbusiness #surgepricing

As restaurants embrace dynamic pricing like hotels and airlines have done for some time, it may pose challenges in consumer acceptance amid rising costs. Yale School of Management Professor Nathan Novemsky shared his thoughts:   "Consumers would find it unfair to pay more simply because the restaurant knows consumers want to eat at a certain time – that would be like raising the price of shovels in a snowstorm, a very unwelcome tactic. Consumers find it more fair if costs at the restaurant go up when prices go up – e.g. we have to hire more people to deal with the busy time so it costs more to serve customers. In other words, consumer acceptance of dynamic pricing in restaurants may depend critically on why consumers think the prices are changing. The other main feature that may drive reactions is the reference point – i.e. are consumers paying more than regular price or less than regular price. As mentioned in the article, using dynamic pricing to give discounts is welcome and fair. Using dynamic pricing to raise prices is potentially troubling. That makes it important to emphasize at all times that the prices shown are at or below the 'regular' price. Of course raising the regular price, e.g. because food costs are rising, might be a key part of this strategy." https://lnkd.in/gxTbAwDP

Controversial Opinion Alert!🔥 I went out for dinner last night, and the final bill arrived with a $7 service charge. It was, of course, a credit card processing fee (these are typically around 3% of the entire bill). I found it really annoying! Why are restaurants making these fees my problem? Shouldn't they be factoring these costs into their listed pricing? 🤔 Throwing it out there: Shouldn't restaurants price their menus effectively? My opinion: don’t offload your operational costs onto customers as line items like taxes. How does everyone else feel about this? Drop your thoughts below!👇 #JustIncludeItInThePrice #restaurant #pricing #pricings

If you are hungry for barbecue on a Saturday night this month, a delivery of a pulled-pork sandwich from Cali BBQ could cost you around $18.  Or you could hold off a few days and order the same sandwich delivered on a weekday afternoon for around $12. Restaurants like San Diego-based Cali BBQ are experimenting with a form of the dynamic pricing long used by airlines, hotels and ride-hailing services. Technology providers are pitching services that enable restaurants to change prices weekly or monthly, increasing or slashing the cost of a taco or sandwich between a few quarters to several dollars, depending on demand and sales patterns. The small changes can add up for restaurants seeking more sales, though operators must weigh the potential gains with the risk of upsetting inflation-weary consumers. #pricing #inflation Heather Haddon https://lnkd.in/erNN2h6v

Only 31% of customers think their last visit to a restaurant was "worth it" based on our recent survey among 1,000 Americans 18+ years old. If the "experience is WORTH IT", customers ARE WILLING TO PAY MORE. Yet the issue is that dynamic pricing is all about boosting sales and profits; I don't see any mention of improving the Guest experience. Without improving the experience, the VALUE EQUATION will continue to be UPSIDE DOWN. Want to grow your traffic? My recommendation - invest in the experience and don't take any more price. Consumers WANT to go out to eat, it's just that many operators aren't delivering the experience they crave. #journeybacktojoy #guestexperience #restaurants

Restaurant M&A 101 with Brad Ruth, CBI: When food costs go up, raise your prices. Turns out there are A LOT of older owners out there who were slow to raise pricing when food costs ticked up last year (didn't want to update their paper menus), and margins suffered. That became an issue at the deal table when buyers were looking to capitalize on reduced cash flows... Opportunity for buyers. Red flag for restaurant owners slow to adapt.

At a conceptual level, how different is "surge pricing" than lunch and "early bird" specials that have been around forever at many popular restaurants? Is The Wendy's Company getting backlash from the idea of "dynamic pricing" or a branding misstep? #marketing #messaging #branding #brandstrategy #consumermarketing #businessoptimization #businessmodelinnovation #qsrs #quickservicerestaurant #restaurantindustry #restaurantmarketing #restaurantmanagement #restaurants #serviceindustry #surgepricing #dynamicpricing #costofliving #consumersentiment #reframing #consumerbehavior