Surge Pricing in Restaurants

[JKRolling]

Just read an interesting article about surge pricing possibly being introduced to restaurants and rolled my eyes thinking this is just blatant profiteering. But then thought that maybe this is a way to help secure the longer term future of hospitality and could benefit those of us that don’t always want to eat at peak times. Would be interested to see what the forums views are on this.

https://www.theguardian.com/food/2024/mar/11/surge...

[QJumper]

What would benefit people who don't want to eat at peak times would be discounted off peak prices, not uplifted prices at peak times.

The end result is the same but, from a PR point of view, it would make sense to have the higher price listed as standard, and lower off peak prices, rather than the other way round.

[robbieduncan]

Conceptually no different to offering discounts/special offer during quiet periods. Restaurants frequently have “early bird specials” for example.

People react badly to “I have to pay more to do X exactly when I want” but less badly to “I can save money by doing X when I don’t want to”

[Dingu]

Still waiting for someone to use profiteering in a situation that actually warrants it.

[Previous]

There's a large "eat as much as you can" type place in Bristol (ZaZa Bazaar) - haven't been for a while but have noticed they do this.

Price per head depends on the day you go. Sunday is the most expensive day.

[miniman]

QJumper said:

What would benefit people who don't want to eat at peak times would be discounted off peak prices, not uplifted prices at peak times.

The end result is the same but, from a PR point of view, it would make sense to have the higher price listed as standard, and lower off peak prices, rather than the other way round.

This is fairly common, no? An “early bird” or “pre theatre” menu.

[Terminator X]

We tend to eat out between lunch and dinner just because it's quieter and less rammed.

TX.

[Countdown]

Isn't this the same as pubs having "Happy Hour"?

[i4got]

Countdown said:

Isn't this the same as pubs having "Happy Hour"?

Sounds like the opposite - Unhappy hour with increased prices.

Love to see how that works in practice. You chose a restaurant online,.checkout the menu and pricing. Book it and turn up and because its busy they try to charge you more.

[bitchstewie]

Countdown said:

Isn't this the same as pubs having "Happy Hour"?

I read it as the other way around.

If a burger is a tenner and you turn up and it's eight quid because it's a quiet period that feels a lot more acceptable then finding it's twelve quid because the place is busy.

I guess it comes down to how transparent and upfront the pricing is but I'd be surprised if it takes off.

[sherman]

Countdown said:

Isn't this the same as pubs having "Happy Hour"?

Happy hour is illegal in Scotland.
Any drinks promos need to be a minimum of 72 hours.

I know for a fact in Edinburgh most restaurants during The Festival period (July-September )reduce the menu options and increase the prices to fleece the massive influx of tourists.

[Mobile Chicane]

I think it would only work in the type of places where you turn up, see what's on the board, and then decide whether you want to order or not. Take-aways, chippies, kebab shops etc.

In my utopian idyll, the extra charge would go to the staff on shift, as recompense for having to deal with late night pissed up aholes.

I'd also install a secret dhead Button, which staff could press to immediately double the prices for anyone being obnoxious. Actually, I think all pubs should have this.

[fourstardan]

Was this guardian article written by a 18 year old work experience student!

[Venisonpie]

Dynamic pricing is nothing new, I'm a fan. At many posh places having lunch can be much better value than dinner for the same menu (our local michelin * place has always done it).

Paying adults have a choice on discretionary spend, no one is forced to buy when the price is high.

[LooneyTunes]

I don’t see a problem with it… provided it was part of a broader view of how a restaurant made money.

The one that always gets me is the extent of wine mark-ups and the absence of a “corkage” option (even if these were higher than the £25/bt that the Hawksmoor charges). I’d much prefer to pay a fair price for the food than feel like I’m getting fleeced on the wine.

[NaePasaran]

sherman said:

Happy hour is illegal in Scotland.
Any drinks promos need to be a minimum of 72 hours.

I know for a fact in Edinburgh most restaurants during The Festival period (July-September )reduce the menu options and increase the prices to fleece the massive influx of tourists.

Yep, I noticed this with Beirut were I used to go quite often. Went in June for fathers day, then again in August after an afternoon show and the price difference was massive. Wasn't just a couple of percent to cover inflation or costs, dishes seemed 30-50% increase in price.


Regarding surge pricing, if the price decreases from the menu during quietier times then there's no issue with that. But if the price increased from their standard price as the algorithm detected it was busier than normal, then that's taking the piss a bit.

[hidetheelephants]

Haven't eateries been doing this forever? I frittered away large amounts of my student loan stuffing my face with lunchtime specials at the cafe nearest the engineering building; I very rarely ate there at night as it was ~50% more expensive.

[Teddy Lop]

hidetheelephants said:

Haven't eateries been doing this forever? I frittered away large amounts of my student loan stuffing my face with lunchtime specials at the cafe nearest the engineering building; I very rarely ate there at night as it was ~50% more expensive.

Pretty much, our local curry hose has specials on mon/tue/sunday lunch, other (usually chain) restaraunts have deals such as tastecard with limits on day/time etc

Although the topic is about it surging up from a set point as well as down which is less common and more controversial.

The festival pricing mentioned might seem a little gougy but is no different from say the local accomodation doing the same... In certain areas businesses "make" their money during the festival/new year etc and otherwise might not be there ticking over for the rest of the year...

I generally don't have an issue with surge (or what one could call "peak") pricing when its clear and you have alternatives such as food and hotels.. where it becomes ugly is when you have a middleman touting tickets and companies like silverstone racetrack introducing a pretend overloaded demand based system that just enables them to pretend tickets are available for less than they will try to charge you.

[Hoofy]

robbieduncan said:

Conceptually no different to offering discounts/special offer during quiet periods. Restaurants frequently have “early bird specials” for example.

People react badly to “I have to pay more to do X exactly when I want” but less badly to “I can save money by doing X when I don’t want to”

Yeah, how's it different to lunch time menus vs evening or Sunday lunchtime menus where the prices differ?

[spikeyhead]

Mobile Chicane said:

I think it would only work in the type of places where you turn up, see what's on the board, and then decide whether you want to order or not. Take-aways, chippies, kebab shops etc.

In my utopian idyll, the extra charge would go to the staff on shift, as recompense for having to deal with late night pissed up aholes.

I'd also install a secret dhead Button, which staff could press to immediately double the prices for anyone being obnoxious. Actually, I think all pubs should have this.

I've watched a landlord do this. Customer was rude to one of the barstaff, so when he came to the bar again the landlord charged him for an extra pint, then the next time, and extra two, then again for an extra three.