At ASTRALCOM, we see time and again that digital disruption is industry-agnostic. Perhaps it shouldn’t be surprising that innovation from Uber is suddenly having an impact on the food & dining industry. A recent article in Food & Wine spells out everything that’s changing – and calls into question the novelty of surge pricing as a model.
Dynamic pricing has informed the way that many sectors have matched supply and demand. The travel industry, for instance, cranks up prices during key travel moments when demand increases. Airlines and hotels have engaged in the practice for decades. Similarly, the idea of adjusted pricing has been in effect in restaurants in a more subtle way through the use of time-of-day and holiday menus.
So what does surge pricing for restaurants actually entail? Through the efforts of reservation systems and data providers such as OpenTable and Tock, restaurant visits can be treated like a ticket. As demand and desirability go up during peak times, so do prices.
Should your restaurant work dynamic pricing into its model? While this is still an emerging trend, ASTRALCOMM is interested in helping you navigate toward an audience-centric approach. Reach out to learn more about our digital marketing expertise.