Industry Experts Warn Surge Pricing is the Future of Dining
Restaurant chains claiming they will not adjust menu prices throughout the day are not to be trusted, according to experts. Surge pricing, also known as dynamic pricing, is the new trend in dining, experts claim.
Steve Zagor, a seasoned restaurant consultant from New York who teaches at Columbia University, stated, “It’s written on the tablets of fate.”
Recently, Wendy’s, a fast-food chain, announced plans to implement surge pricing by 2025. This pricing strategy, commonly used by airlines and ride-share companies, involves charging customers more during peak hours and less during slower times.
Following the backlash from customers, Wendy’s clarified its stance, declaring that surge pricing will be used to offer discounts during off-peak hours. The company emphasized that prices will not be raised when customers visit most frequently.
In response to Wendy’s surge pricing model, other restaurant chains like Burger King have positioned themselves as anti-surge. Burger King launched a promotion, “No Urge to Surge,” offering a free Whopper or Impossible Whopper with purchases over $3 through their app. Burger King’s U.S. President, Tom Curtis, stressed the company’s commitment to providing the best service and value without resorting to surge pricing.
Similarly, chains like KFC and Chili’s have denied any plans to implement surge pricing, emphasizing their focus on delivering consistent value without gimmicks. George Felix, the Chief Marketing Officer of Brinker International, the company behind Chili’s, reiterated their dedication to offering the best value.
Despite claims of being anti-surge, many restaurant chains have heavily invested in technology like apps and digital menus, which enable quick adjustments to menu prices. This investment indicates that surge pricing may become a common practice in the industry.
In conclusion, while some restaurant chains publicly denounce surge pricing, the reality is that technological advancements are paving the way for dynamic pricing to become a standard in the dining industry.