The next outrage in food service, dynamic pricing!

https://nypost.com/2024/02/26/business/wendys-planning-surge-prices-based-on-fluctuating-demand

Surprised it took this long, tbh. The concept was floated over a year ago when I was in the industry, on the equipment manufacturing side.

After the tipflation disdain, how will this be recieved by consumers? Will the adoption spread? Will labor compensation scale in similar fashion as executive comps? E. G. Results based? Could that address some of the labor supply challenges? Or do folks still have it in their mind: “no one wants to work”…?

Honestly, I can see some LTO or specials being time dependent, and pormoted via apps to try to drive off peak demand, similar to lunch specials or pre fixe menus at many sit down restaurants.

I can already see it:

10-10-10-SURGE PRICING!-15-17-15-NORMAL PRICE-12-12-12-SURGE PRICING!-16-18-17-NORMAL PRICE-13-13-13
.

https://nypost.com/...n-fluctuating-demand

Surprised it took this long, tbh. The concept was floated over a year ago when I was in the industry, on the equipment manufacturing side.

After the tipflation disdain, how will this be recieved by consumers? Will the adoption spread? Will labor compensation scale in similar fashion as executive comps? E. G. Results based? Could that address some of the labor supply challenges? Or do folks still have it in their mind: “no one wants to work”…?

Honestly, I can see some LTO or specials being time dependent, and pormoted via apps to try to drive off peak demand, similar to lunch specials or pre fixe menus at many sit down restaurants.

It makes sense and if you can get the price, why not charge it? It would seem the folks working during the lunch shift should then get a bump in pay during that hour etc.

Overall, I think it’s stupid in the long term as fast food is primarily junk and people know they shouldn’t be eating it. This will hopefully push people to eat more homemade meals, pack lunches and care more about their overall health. If it makes a few fast-food places go out of business because people stop using them, all the better.

https://nypost.com/...n-fluctuating-demand

Surprised it took this long, tbh. The concept was floated over a year ago when I was in the industry, on the equipment manufacturing side.

After the tipflation disdain, how will this be recieved by consumers? Will the adoption spread? Will labor compensation scale in similar fashion as executive comps? E. G. Results based? Could that address some of the labor supply challenges? Or do folks still have it in their mind: “no one wants to work”…?

Honestly, I can see some LTO or specials being time dependent, and pormoted via apps to try to drive off peak demand, similar to lunch specials or pre fixe menus at many sit down restaurants.

It makes sense and if you can get the price, why not charge it? It would seem the folks working during the lunch shift should then get a bump in pay during that hour etc.

Overall, I think it’s stupid in the long term as fast food is primarily junk and people know they shouldn’t be eating it. This will hopefully push people to eat more homemade meals, pack lunches and care more about their overall health. If it makes a few fast-food places go out of business because people stop using them, all the better.
They won’t.

In Berlin they have a beer bar with stock ticker of prices and it changes the cost of it goes up or down. This can be a good thing surge wise. It is misery for workers during rush hours, the load will spread throughout the day equally via this plan

https://nypost.com/...n-fluctuating-demand

Surprised it took this long, tbh. The concept was floated over a year ago when I was in the industry, on the equipment manufacturing side.

After the tipflation disdain, how will this be recieved by consumers? Will the adoption spread? Will labor compensation scale in similar fashion as executive comps? E. G. Results based? Could that address some of the labor supply challenges? Or do folks still have it in their mind: “no one wants to work”…?

Honestly, I can see some LTO or specials being time dependent, and pormoted via apps to try to drive off peak demand, similar to lunch specials or pre fixe menus at many sit down restaurants.

It makes sense and if you can get the price, why not charge it? It would seem the folks working during the lunch shift should then get a bump in pay during that hour etc.

** Overall, I think it’s stupid in the long term as fast food is primarily junk and people know they shouldn’t be eating it. This will hopefully push people to eat more homemade meals, pack lunches and care more about their overall health. If it makes a few fast-food places go out of business because people stop using them, all the better. **

Just wait until grocery stores start surge pricing a head of lettuce on weekends and after work, when most people do their shopping.

https://nypost.com/...n-fluctuating-demand

Surprised it took this long, tbh. The concept was floated over a year ago when I was in the industry, on the equipment manufacturing side.

After the tipflation disdain, how will this be recieved by consumers? Will the adoption spread? Will labor compensation scale in similar fashion as executive comps? E. G. Results based? Could that address some of the labor supply challenges? Or do folks still have it in their mind: “no one wants to work”…?

Honestly, I can see some LTO or specials being time dependent, and pormoted via apps to try to drive off peak demand, similar to lunch specials or pre fixe menus at many sit down restaurants.

It makes sense and if you can get the price, why not charge it? It would seem the folks working during the lunch shift should then get a bump in pay during that hour etc.

** Overall, I think it’s stupid in the long term as fast food is primarily junk and people know they shouldn’t be eating it. This will hopefully push people to eat more homemade meals, pack lunches and care more about their overall health. If it makes a few fast-food places go out of business because people stop using them, all the better. **

Just wait until grocery stores start surge pricing a head of lettuce on weekends and after work, when most people do their shopping.

Then we’ve got a problem.

Your daily morning latte just got 50% more expensive, unless you wait until after 11am to buy it!

https://nypost.com/...n-fluctuating-demand

Surprised it took this long, tbh. The concept was floated over a year ago when I was in the industry, on the equipment manufacturing side.

After the tipflation disdain, how will this be received by consumers? Will the adoption spread? Will labor compensation scale in similar fashion as executive comps? E. G. Results based? Could that address some of the labor supply challenges? Or do folks still have it in their mind: “no one wants to work”…?

Honestly, I can see some LTO or specials being time dependent, and promoted via apps to try to drive off peak demand, similar to lunch specials or pre fixe menus at many sit down restaurants.

LIRR, NJ Transit, and Metro-North - all have on and off peak pricing. So do most of the ride share apps. You just have to be smart, or pay to play.

https://nypost.com/...n-fluctuating-demand

Surprised it took this long, tbh. The concept was floated over a year ago when I was in the industry, on the equipment manufacturing side.

After the tipflation disdain, how will this be recieved by consumers? Will the adoption spread? Will labor compensation scale in similar fashion as executive comps? E. G. Results based? Could that address some of the labor supply challenges? Or do folks still have it in their mind: “no one wants to work”…?

Honestly, I can see some LTO or specials being time dependent, and pormoted via apps to try to drive off peak demand, similar to lunch specials or pre fixe menus at many sit down restaurants.

It makes sense and if you can get the price, why not charge it? It would seem the folks working during the lunch shift should then get a bump in pay during that hour etc.

** Overall, I think it’s stupid in the long term as fast food is primarily junk and people know they shouldn’t be eating it. This will hopefully push people to eat more homemade meals, pack lunches and care more about their overall health. If it makes a few fast-food places go out of business because people stop using them, all the better. **

Just wait until grocery stores start surge pricing a head of lettuce on weekends and after work, when most people do their shopping.

Then we’ve got a problem.

So the plan is to make lunch cost more during the hours that people eat lunch? And breakfast will cost more during the hours people eat breakfast?

This is just a cost hike, disguised as “dynamic pricing.”

https://nypost.com/...n-fluctuating-demand

Surprised it took this long, tbh. The concept was floated over a year ago when I was in the industry, on the equipment manufacturing side.

After the tipflation disdain, how will this be received by consumers? Will the adoption spread? Will labor compensation scale in similar fashion as executive comps? E. G. Results based? Could that address some of the labor supply challenges? Or do folks still have it in their mind: “no one wants to work”…?

Honestly, I can see some LTO or specials being time dependent, and promoted via apps to try to drive off peak demand, similar to lunch specials or pre fixe menus at many sit down restaurants.

LIRR, NJ Transit, and Metro-North - all have on and off peak pricing. So do most of the ride share apps. You just have to be smart, or pay to play.

As do Blackjack tables, craps etc.

With Uber, the surge model helps raise the supply of drivers during times of heavy demand. Drivers can earn more, incentivizing more to drive during those peak times.

I’m pretty sure the capacity of a wendy’s to pump out hamburgers is pretty constant throughout the day. I’m pretty sure the guy making those hamburgers is getting minimum wage regardless of when he’s working. There’s no added value to the consumer, at all, to have surge pricing at fast food restaurants.

https://nypost.com/...n-fluctuating-demand

Surprised it took this long, tbh. The concept was floated over a year ago when I was in the industry, on the equipment manufacturing side.

After the tipflation disdain, how will this be received by consumers? Will the adoption spread? Will labor compensation scale in similar fashion as executive comps? E. G. Results based? Could that address some of the labor supply challenges? Or do folks still have it in their mind: “no one wants to work”…?

Honestly, I can see some LTO or specials being time dependent, and promoted via apps to try to drive off peak demand, similar to lunch specials or pre fixe menus at many sit down restaurants.

LIRR, NJ Transit, and Metro-North - all have on and off peak pricing. So do most of the ride share apps. You just have to be smart, or pay to play.

The fallacy, to me, is that surge pricing should typically be used to drive behaviors. The caution in that is with elastic products with good alternatives (make coffee at home versus a surge priced latte at SB) they could bite the hand that feeds hard enough they get into a whiplash “oh shit, we sent too far this time” scenario. Then over a month you have franchises shutting down that are always “off peak” and only remaining ones are the ones in populous areas.

With tolling, you’re driving a behavior to spread the commute volume out over longer time to spare the infrastructure. With products, you want to drive consumption, not drive abstaining.

I feel it might drive the wrong behaviours for consumers.

Good luck to them with that. If they do that around here, i’ll stop going to Wendy’s.

I can see maybe trying to get away with this for some special restaurant or foodery where what they’re serving up, there’s no easy alternative…basically you have a captured audience that are there specifically for your unique food.

Fast food restaurants though? No. There’s always multiple other burger places nearby. I’ll just stop going to the place if I know.

With menu prices drastically increasing, up-charging for pickup orders, food shrinkflation, tipflation, high-friction point of sale default tip %s, cash tip begging jars, etc… It’s already way too much cost change. 'eff that.

.

Nobody tell them about happy hour or senior 4pm specials.

https://nypost.com/...n-fluctuating-demand

Surprised it took this long, tbh. The concept was floated over a year ago when I was in the industry, on the equipment manufacturing side.

After the tipflation disdain, how will this be recieved by consumers? Will the adoption spread? Will labor compensation scale in similar fashion as executive comps? E. G. Results based? Could that address some of the labor supply challenges? Or do folks still have it in their mind: “no one wants to work”…?

Honestly, I can see some LTO or specials being time dependent, and pormoted via apps to try to drive off peak demand, similar to lunch specials or pre fixe menus at many sit down restaurants.

It makes sense and if you can get the price, why not charge it? It would seem the folks working during the lunch shift should then get a bump in pay during that hour etc.

** Overall, I think it’s stupid in the long term as fast food is primarily junk and people know they shouldn’t be eating it. This will hopefully push people to eat more homemade meals, pack lunches and care more about their overall health. If it makes a few fast-food places go out of business because people stop using them, all the better. **

Just wait until grocery stores start surge pricing a head of lettuce on weekends and after work, when most people do their shopping.

Then we’ve got a problem.

So the plan is to make lunch cost more during the hours that people eat lunch? And breakfast will cost more during the hours people eat breakfast?

This is just a cost hike, disguised as “dynamic pricing.”

Just order breakfast during lunch hour to avoid surge timing… what could go wrong?

https://64.media.tumblr.com/805bb754ac090a5271d14df2bb1a6bfa/tumblr_poebhxWHxY1rf1yd3o8_1280.jpg

My older son turned 21 a few months ago and was playing $220 inside at the $50 craps table in Caesars at 3 AM.

My older son turned 21 a few months ago and was playing $220 inside at the $50 craps table in Caesars at 3 AM.

Excellent parenting there
.

Wait there is a lunch time rush at Wendy’s?

He tipped the dealers $75 and walked away with a $580 profit in 40 minutes.