Thursday, March 28, 2024

7 Reasons Dynamic Pricing will not work for Chain Restaurants


Chain restaurants need to be continually looking a customer ahead, if they take the eye off today’s customers, tomorrows customers won’t be there either. While consumers are dynamic not static, they are also penny wise, not pound foolish according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® simply stated they know what a meal cost, even more important they know what your meal cost.

There are some potential pitfalls for chain restaurants implementing dynamic pricing. Here are 7 reasons why it might not be the best fit:

1.       Customer Perception: People might view fluctuating prices as unfair or even price gouging, especially for familiar menu items at a chain known for consistency (

2.       Budget Busters: Chain restaurants are often budget-friendly options. Dynamic pricing could throw a wrench into customer's plans and make it harder to predict spending.

3.       Friction and Frustration: Imagine wanting a burger and fries for lunch, only to find out it costs more than dinner because of a lunch rush. This complexity could frustrate diners and slow down decision-making.

4.       Value vs. Price: Unlike airlines with limited seats, chain restaurants can usually handle increased demand. Customers might question paying more for the same food they know they can get elsewhere.

5.       Promotional Hurdles: Chain restaurants often run promotions and deals. Dynamic pricing could make these promotions confusing or even negate their effectiveness.

6.       Tech Investment: Implementing and maintaining digital menu boards and systems to track and adjust prices requires a significant technological investment.

7.       Brand Identity Clash: Chain restaurants rely on brand recognition and a sense of consistency. Dynamic pricing could introduce an element of unpredictability that clashes with the established brand image.

While dynamic pricing might work for other industries, these factors suggest it could backfire for chain restaurants. They might be better off focusing on value, consistency, and targeted promotions to attract customers.

Foodservice Solutions® team is here to help you drive top line sales and bottom-line profits. Are you looking a customer ahead? Visit for more information or contact: Remember success does leave clues and we just may the clue you need to propel your continued success.

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