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Dynamic Pricing Enters the Restaurant Business

Let’s say you want to get an Uber after seeing the Golden State Warriors play. The thought of paying more than $75 for a quick drive home makes you furious. The cost of that identical Uber travel home on Tuesday about noon was $25. Why?
Businesses can adjust prices using dynamic pricing based on a number of variables, including demand, the time of day, and other market conditions.

For many years, airlines have employed dynamic pricing. Nearly every ride service has adopted the tactic. Restaurants are now adopting the concept.
By modifying prices in response to demand levels—increasing prices during periods of high demand and decreasing prices during periods of low demand—dynamic pricing helps firms to maximize revenue. There is more potential profit when there are more price points. An increasing number of shops have adopted this method as a result of rising prices in recent years.
The largest pub chain in the United Kingdom, Stonegate Group, introduced dynamic pricing at 800 locations last year. The chain of pubs includes eateries like Slug & Lettuce and Yates bars, where pint prices rise during happy hour and decrease during off-peak hours.

The Wall Street Journal claims that several American eateries, including Bartaco and Cali BBQ, use dynamic pricing to alter their prices weekly or monthly in response to patterns in customer demand.
Paper menus and cash payments made it challenging for eateries to continuously adjust their rates in the past. The increasing use of digital payments, online menus, and app-based meal ordering has made dynamic pricing more simpler.
A lot of tech companies are developing services that let restaurants alter their prices on a weekly or monthly basis. The system can make a burger or beer cost a few quarters or several dollars less or more, depending on demand and sales trends.

Why don’t businesses use surge pricing more frequently if they can profit from it more?
since consumers find it objectionable.
Kirk Tanner, the CEO of Wendy’s, declared this month that the business would implement surge pricing in 2025. The business swiftly responded to harsh criticism by stating that it was only discussing “dynamic pricing,” which would only result in price reductions for clients during slower periods of demand.