While Wendy’s denied it ever introduced the world to the words “dynamic pricing,” The Wall Street Journal says other restaurants are testing out surging their prices at their busiest times.
At the chain Cali BBQ, for example, one of its sandwiches can run as much as $6 more on the weekend than it does during the week. A pilot program to surge its prices was a success, according to the four-restaurant chain’s owner, Shawn Walchef, who adds, “I recommend it to every restaurant owner.”
However, WSJ warns that eateries must carefully thread the needle between trying to offset sky-rocketing food costs and turning off potential customers who are already feeling the bite of inflation before they get a bite to eat.
Matthew Tucker of the company Tock, which offers restaurants’ dynamic pricing models, warns, “People know how much a small fry or burger costs. If they mess with that formula, you have to be careful.”
Dine Brands, parent company of Applebee’s and IHOP, says it won’t deploy dynamic pricing model for its restaurants. Chief Executive John Peyton explains to the Journal its customers are cost-conscious, and after an examination, found the surge pricing a bad fit for its guests.
That said, an online survey of 1,000 people that was conducted by the National Restaurant Association found that 65% of respondents were fine with pricing that goes up — or down — depending on the time of day, with younger consumers being more open to it than older ones.