Diners don’t like overcrowded restaurants or long waiting lists, but there’s one approach to the problem they like even less: surge pricing. Also known as dynamic pricing, it attempts to ease the biggest rushes by either raising prices at the busiest times, lowering prices at the slowest times, or both.
While the latter, aka early bird specials, are having a moment, the prospect of charging more at busy times tends to trigger consumers. After Wendy’s CEO Kirk Tanner announced during a February earnings call that the chain would “begin testing…dynamic pricing” in 2025, the chain faced backlash and said it would not be charging more at busy times and that Tanner’s announcement had been “misconstrued.”
When a chain of pubs in the UK announced in 2023 it would charge more for pints during busier hours, we polled Retail Brew readers on whether they thought that was a good strategy; nearly 3 out of 4 (73.9%) said no, it was not.
But why use a stick when you buy carrots in bulk? So goes the thinking at Snooze Eatery, a chain of breakfast and brunch restaurants with 71 locations in the US.
Keep reading here.—AAN
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