Edward Hoffman’s Post

Dynamic pricing is good business. When demand goes up, and supply can’t move fast enough to produce more, the price must increase. Amazon and Uber figured out dynamic, or surge pricing, eons ago. It’s time for barbershops and restaurants to follow suits. A local restaurant owner was able to make an additional $1500 per month from dynamic pricing on his burgers using technology called Juicier. The burger surged from 12 to 18! What do you think about dynamic pricing ?

What a fantastic way to lose customers! Surge pricing added to your burger or potato price during peak times? And, when inflation is impacting the average The Wendy's Company customer probably a lot. This isn’t a limited resource like how many Uber drivers are available at midnight on NYE. It’s also more of a readily available substitute commodity purchase when you can drive across the street to McDonald's or Burger King The surge pricing will reduce repeat customer visits and encourage people to go across the street. Did you do research on this topic?

Dynamic pricing, in which prices fluctuate frequently based on demand, is rapidly spreading into new industries, including restaurants. Big restaurant chains, such as Wendy's, are carefully investigating this possibility. Other US chains, like Cali BBQ and Bartaco, already use dynamic pricing to adjust menu prices weekly or monthly in response to demand trends. It is already usual to see dynamic pricing when booking a flight, purchasing a movie ticket, or paying the utility bill. While Wendy's received a lot of criticism for what appeared to be an outlandish idea, applying dynamic pricing becomes easier — and perhaps inevitable — as industries adopt more digital technology. Until recently, paper menus, cash payments, and analog bookkeeping systems made it difficult for restaurants to change menu prices on the fly. With the widespread adoption of digital payments, online menus, and app-based food ordering, dynamic pricing has become much easier to implement. Any business that seeks to make it work will have to convince customers that dynamic pricing allows them to save money. #markettrends #pricing #pricingstrategy #dynamicpricing https://lnkd.in/gEXn8YEG

Some eateries are testing dynamic pricing tools that adjust menu prices based on demand and staffing. But are these systems really catching on? I read an article from WSJ restaurant industry reporter Heather Haddon to learn more. Heather says, "Surge pricing in restaurants isn't quite what we see in ride-share apps. While some eateries use dynamic pricing tools, they mostly adjust menu prices weekly or monthly, not in real time. For example, systems like Juicer may raise prices slightly during peak times on delivery apps, then lower them during slower periods." These digital tools help restaurants increase sales and cover costs, especially fees from delivery apps. However, restaurants must tread carefully when consumers feel the pinch of inflation. Consultants advise emphasizing the "happy hour" aspect of dynamic pricing, where prices decrease during slow times. Surveys show that many consumers, especially younger ones, support variable pricing in restaurants if costs go down and up. What do you think about this trend as an industry professional and a diner? Share your thoughts below! #RestaurantTrends #DynamicPricing #DiningExperience

Time differentiated pricing is finally getting momentum also with the big fast food chains. This is a very welcome phenomenon (hands up those who never queued at a restaurant for too long), but looks like Wendy's botched the communications about their plans. Eiko pointed out this was about aligning with customer value. I couldn't agree more, but I think Wendy's might have even been confused with what they were actually doing. My three key improvement ideas for this case: · Be sure to understand if you are doing differentiation or dynamic surge pricing, or something in between (small variations around base price for example). Don't ever call it, or allow the press to call it, "surge pricing" unless you really plan to fend off customers at certain times. · Always frame it as discounts, even if there are scenarios where prices increase. · You don't need to take Uber approach to dynamic pricing. One percent price increase famously increases profits by 11%. Start small, test, learn and improve. Quiet launching also helps with click bait press this kind of move easily attracts. https://lnkd.in/gZv8WQ-d

Apparently I didn't have enough reasons to stop ordering take-out. Just saying the words "customer savings" doesn't actually mean anything when you can arbitrarily change the prices of your offerings on a whim. I expect to see a massive restructuring of the team in charge of this decision, and if not, I expect demand to tank. If I'm wrong, and this revolutionizes fast food, great for them and I'll need to hit the books on the 4P's again. But all I see is consumer frustration at a tone-deaf response to an ever increasing cost of living from a corporation that is not losing money. My basis for my criticism is the understanding that fast food is prioritized because of predictability of service, quality, and price. We begrudgingly accept rideshare "surge" pricing due to the perception of a limited amount of available drivers. You don't really want your customers to hold their nose when they buy from you, ESPECIALLY WHEN YOU SELL FOOD.

"McDonald's said earlier this year that it was seeing fewer U.S. visits and lower spending from customers earning less than $45,000 per year" To put that into perspective, $45,000/year is $21.65/hour for 40 hours/week. Many people still see McDonald's as the cheap, fast food restaurant back when they were kids. Where you could get a big mac, large fry and a large coke for $5! Those days are behind us and aren't likely to return for good. McDonald's is trying to get their budget conscious customers back...but only for a limited time. Their $5 deal will run for 1 month into June. How can you make your dollars stretch further when feeding you and your family? 🤑 Have a plan! Each decide what is for dinner each day and get to the grocery store If eating out is part of the plan, make it a place that fits the budget, but you are likely to take home leftovers for lunch/dinner the next day. 📲 Get the app! Many restaurants are moving to rewards and apps-most include daily or weekly deals that can help you save a buck. 😋 Take advantage of places that offer nights when kids eat free, offer happy hours or have theme nights that offer discounts on certain food (ex: Wings Wednesday) #empeoplecu #financialfreedom #johndeere

Burger King is reassuring customers that dynamic pricing is not in their plans. This follows a customer’s surprise at a sudden price increase while placing an order, where the total jumped from US$33.89 to US$34.18. This incident sparked concerns about dynamic pricing at the fast-food chain. However, Burger King confirmed this was just a technical error and not a new pricing strategy. They’re actively working to fix the issue. Meanwhile, Wendy’s made headlines earlier this year with plans to test dynamic pricing and other digital enhancements. This announcement faced backlash and accusations of price gouging. Yet, Wendy’s clarified that it doesn’t mean higher prices during peak hours. Instead, they plan to use flexible menu displays and offer discounts during slower periods, aiming to enhance the customer experience without making it more expensive. These incidents highlight how sensitive fast-food pricing can be. Customers think that the appeal of fast food lies in its consistent affordability and convenience. Therefore, any hint of dynamic pricing can lead to backlash. If prices become unpredictable, they might seek alternatives. Thus, fast-food chains need to balance innovative pricing strategies with customer expectations. In essence, while dynamic pricing works in some industries, it might not fit well with fast food’s value proposition and customer expectations at this time. Nevertheless, fast food businesses can still modernise their pricing strategies. The key is to understand customer value perceptions and communicate their pricing strategies clearly. #pricingnews #taylorwellspricing Source: https://lnkd.in/gBPd95RT

A FIGHT WORTH JOINING It's the PRINCIPLE of this affront to sound business practice. Are you sick and tired of bad service and literal theft at Grubhub? (refusal to provide a refund) Below see content of a recent email I received from Grubhub. Grubhub refused to honor the $20 credit noted below, on the email THEY sent me. I then ordered the Bogo Chipotle they listed in spite of their refusal to honor the credit. The order did not reflect Bogo when placed. I immediately called Customer Service and was told I could not cancel or get a refund. I am considering a class action. If you have any Grubhub horror tales, please send them to me. Below: Email from Grubhub to me. Top picks from Grubhub 20% OFF Get 20% off an order of $20+ (up to $7) Expires on Monday $7 OFF Get $7 off the Big Smasher burger on an order of $30+ Expires on Monday Your $20 offer is waiting Yay! Free Grub from Grubhub means you're now eligible for a discounted meal. Gold Days: BOGO Burrito at Chipotle2 Yahoo/Inbox

Burger King is reassuring customers that dynamic pricing is not in their plans. This follows a customer’s surprise at a sudden price increase while placing an order, where the total jumped from US$33.89 to US$34.18. This incident sparked concerns about dynamic pricing at the fast-food chain. However, Burger King confirmed this was just a technical error and not a new pricing strategy. They’re actively working to fix the issue. Meanwhile, Wendy’s made headlines earlier this year with plans to test dynamic pricing and other digital enhancements. This announcement faced backlash and accusations of price gouging. Yet, Wendy’s clarified that it doesn’t mean higher prices during peak hours. Instead, they plan to use flexible menu displays and offer discounts during slower periods, aiming to enhance the customer experience without making it more expensive. These incidents highlight how sensitive fast-food pricing can be. Customers think that the appeal of fast food lies in its consistent affordability and convenience. Therefore, any hint of dynamic pricing can lead to backlash. If prices become unpredictable, they might seek alternatives. Thus, fast-food chains need to balance innovative pricing strategies with customer expectations. In essence, while dynamic pricing works in some industries, it might not fit well with fast food’s value proposition and customer expectations at this time. Nevertheless, fast food businesses can still modernise their pricing strategies. The key is to understand customer value perceptions and communicate their pricing strategies clearly.