Dynamic Pricing

[Parsad]

Becoming more and more common.  Now Wendy's will test it!  Cheers!
 

https://www.cnn.com/2024/02/27/food/wendys-test-surge-pricing/index.html

[Ross812]

I went to a workout class with my wife last weekend and the gym uses dynamic pricing for their class schedule. $17 to$48 a class depending on popularity. 

[beerbaron]

Totally for dynamic pricing. Works well for concerts or Uber/Lyft because its a quasy Monopoly. Not sure its feasible in restaurant without your neighbour doing something similar.

 

We shall see. Would not bet on this one working out.

 

Beerbaron

[dwy000]

Works great for happy hour. 

[Dinar]

Would work great for something like the Rockettes - 100+ shows with different demand for each.

[Saluki]

I don't know. If I went to Wendy's and the sign said a burger was $5 when I got in line and when I got to the front of the line they told me it was $8, I didn't think I would go back. 

 

 

[RadMan24]

I'll just start "dynamic ordering" -- place the order and then just drive off. 

[Eldad]

And Wendy’s already gave up on it. Haha

 

[Sweet]

The problem is it further penalises people who work and who eat at busy times - rush hour, lunch, after work.  

[ValueArb]

17 hours ago, Saluki said:

I don't know. If I went to Wendy's and the sign said a burger was $5 when I got in line and when I got to the front of the line they told me it was $8, I didn't think I would go back. 

 

 

 

 

I don't know, if my favorite burger at Wendy's was normally $8 but if I knew that if I went at 2 pm it would be $5, I think I would go a lot more often. Thats how it was described in at least one article, that Wendy's would offer off-hour discounts.

[Saluki]

 

There's a lot of sharp traders on here. We gotta find a way to arbitrage this. 

[lnofeisone]

1) Go to Wendy's and order 100 of these sandwiches, driving up futures

2) Trigger the algorithm

3) Start selling to people behind you in line for less than the current spot price

4) Orders will be delivered by Wendy's

 

Someone with extra $1k and a sense of humor should totally do this. 

[Spekulatius]

The problem for a restaurant , especially fast food is that the simplicity goes out the window. These restaurant live of simplicity and if you do not know what the meal you order costs any more and it becomes like booking airline tickets, you may just consider simpler alternatives.

 

I think McDonlds already solves this with their app - they made the regular prices high and to really get the discount you have to have the app.

[gfp]

Look at Spek with the Johnny Cash picture!  Awesome.  I never noticed that before.  I don't even know how to make my G a photo LOL

 

I like to try to say "cash" with a thick bruce berkowitz accent but its like Christopher Walken for me - a very hard accent to get right.

[Pelagic]

I know Wendy's withdrew their plans after the negative feedback and some great memes but I think a lot of people are missing the reasoning why they thought about dynamic pricing in the first place. Take a look at the McDonald's app, you can usually save 20-50% on an order using it, especially if you're ordering for more than one person where you can get the buy a combo add another for $1 deals. Likewise, Taco Bell has some options on the app that you can't replicate for anywhere near the same price on the drive through menu. I think the plan Wendy's had in mind was offer dynamic pricing at the drive through and constant pricing (and deals) on the app in order to drive widespread app adoption, lower labor costs, and long term gradually phase out in store dining.