The Time is Now for Restaurant Dynamic Pricing
Dynamic pricing is showing up all around us. While originally it was more common for airlines and then hotels, Uber very successfully introduced the concept to the taxi industry. Since the ride hailing app has since been so widely used, the concept of real-time dynamic pricing has become more commonly accepted amongst consumers.
Restaurants have used some form of dynamic pricing for a long time. Early bird specials, 2 for 1 drinks and happy hour promotions are all forms of dynamic pricing, intended to attract a higher volume of patrons during specific timeframes. While algorithmic real-time dynamic pricing has not yet been widely used, the 3rd party delivery companies like Uber Eats have been using it to increase delivery fees during peak times.
The restaurant industry has been struggling for the last two years because of the Covid-19 pandemic. Dynamic pricing is a perfect way for restaurants to increase revenue at a time when it is badly needed. The consumer is ready for it and the 3rd party delivery companies are already doing it to some degree. Now the technology is available for restaurants to implement dynamic pricing as well.