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What took them so long?


Hello out there pricing and profit enthusiasts!

 

Are you like me? Are you shocked that the fast food industry has taken this long to catch on to the benefits of dynamic pricing? And do you take solace in the fact that, for once, the hotel sector of hospitality is ahead of the tech curve on just this one thing?

 

ICYMI, Wendy’s is introducing dynamic pricing (nevermind it's been years and years since I've had a Wendy's Chocolate Frosty and now I'm craving one.).

 

It is surprising that it's taken this long to emerge in the fast food sector, despite that yesterday the Wendy's CEO somewhat backtracked after some commotion. I mean, it has all the required conditions; variable supply & demand on a range of perishable products, high volume of data, and AI enhanced automated pricing systems. The assumption is that most people will pay a bit more for the luxury of a convenient fast food fix if the price is higher just when they want it.

 

I imagine McDonalds is waiting in the wings for Wendy's to muck it up, briefly anger people, train customers to expect fast food to be dynamically priced, then introduce it thereafter once the key customer segments are broken in. We can only hope they nail it better than their epic fail attempt at attribute based pricing 

 

What say you? 

Would you pay a bit more for a burger when you're peckish after leaving a poorly-catered wedding? 

How about paying a $2 premium for salty fatty fries at 03:00am after the club closes and the queue is longer than usual? 

Have you yet seen dynamic pricing in hotel restaurant venues?  

 

BTW there are key differences between price gouging and price optimization, which is covered in detail in KNow Revenue™️ training workshops... just saying.


I'd love your thoughts on this topic! Comments welcomed below. Discuss:




 

 

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2 commentaires


Invité
02 mars

I can see some benefits for the food industry, charge more when staffing costs are higher and less when demand is low. But I feel it would be better to come at it from the angle of discounting rather than increasing

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Invité
29 févr.

Imagine how their advertising would go, no more fixed price adverts for 20 chicken nuggets for $10 bucks…. buy now, 20 chicken nuggets for an undisclosed sum, depending on time of day,

How do they then do $5 lunches.... today only, now $7, but tomorrow $5.

Imagine a system like Ideas doing F&B pricing management.

J'aime
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