Way Off Topic: Surge Pricing

[temery]

This is insane. You could pay more than the person in front of you in line for the same order. The only way this could work is if they set a price and said the price may drop when business is slow.

https://www.cnn.com/2024/02/27/food/wendys-test-surge-pricing/index.html

 

[Deepster]

Sounds insane, but it's already used for flights, hotels, sporting events, etc. I listened to a piece on the news today that said it will continually be refined by AI so the swings in price shouldn't be that noticeable (to where you suggest the person behind you pays more for the same thing).

The counter to it is tracking and projecting where and when they'll be the lowest so the consumer has some "power" in the final price.

 

[WhereistheDove?]

Sounds insane, but it's already used for flights, hotels, sporting events, etc. I listened to a piece on the news today that said it will continually be refined by AI so the swings in price shouldn't be that noticeable (to where you suggest the person behind you pays more for the same thing).

The counter to it is tracking and projecting where and when they'll be the lowest so the consumer has some "power" in the final price.

It will be interesting to see if customers will accept it when a) they have a much stronger expectation of what the price will be, and b) this isn’t really dealing with a finite good or service (there are only so many seats in a plane or in a stadium but Wendy’s likely isn’t running out of burgers).

Also doesn’t help them that there is a lot of competition with relatively little differentiation.

 

[Huskyforlife]

I don’t see how this works? People will just avoid Wendy’s during ‘normal’ lunch and dinner times, it’s not like their food is special or unique to influence consumers to spend more.

 

[nelsonmuntz]

Don't eat fast food. An apple costs the same at 8 am and 10 am.

 

[StllH8L8ner]

“Market price” usually only works for lobster.

 

[Uconn77Duke74]

There will be Food Scalpers soon selling cheap morning Burgers to lunchtime people.

 

[prankster]

This is insane. You could pay more than the person in front of you in line for the same order. The only way this could work is if they set a price and said the price may drop when business is slow.

https://www.cnn.com/2024/02/27/food/wendys-test-surge-pricing/index.html

My belief is that this will blow up in their faces.

In so many communities across the nation, there are clusters of fast food joints within a mile of each other.

Given these multiple choices, who will even take the chance? I have 45 minutes for lunch....I know how much it will be at Chick Fila A, Burger king, McDonalds, etc. Who will even take the chance/waste the time on "surge pricing"?

 

[REB1094]

“Market price” usually only works for lobster.

Dying at the idea of a MP Baconator

 

[Deepster]

It will be interesting to see if customers will accept it when a) they have a much stronger expectation of what the price will be, and b) this isn’t really dealing with a finite good or service (there are only so many seats in a plane or in a stadium but Wendy’s likely isn’t running out of burgers).

Also doesn’t help them that there is a lot of competition with relatively little differentiation.

Customers don’t really have a choice. They do if they band together for long enough, but you’re talking about grabbing something in an airport between flights or after your kids soccer practice. The corporations know that.

 

[temery]

Don't eat fast food. An apple costs the same at 8 am and 10 am.

I had a doctor/friend tell me once that fast food saves money in the long run because if you eat it every day you won't have to save for a long retirement.

I now eat fast food a couple times a year.

 

[temery]

My belief is that this will blow up in their faces.

In so many communities across the nation, there are clusters of fast food joints within a mile of each other.

Given these multiple choices, who will even take the chance? I have 45 minutes for lunch....I know how much it will be at Chick Fila A, Burger king, McDonalds, etc. Who will even take the chance/waste the time on "surge pricing"?

Very different industries. The only thing this will accomplish is creating an endless stream of new "Karen" vs Wendy's videos. Maybe there is an upside.

 

[dogpause]

If you're in the food business, the peak hours aren't discretionary. Most people eat meals at certain hours, and mostly fixed intervals.

 

[HCCForever]

Don't eat fast food. An apple costs the same at 8 am and 10 am.

I eat fast food rarely and never feel good after doing it. I haven’t eaten at Wendy’s in years and only did it for salads. Surge pricing often used for concerts and even Uber. I just choose not to purchase as I will do for any restaurant that uses this method.

 

[Revrat]

Given everything I have been reading, one of the main things people have stopped doing since the pandemic is paying too much for fast food and top brands because of the price gouging. Even McDonalds admitted they went too far. How this alleviates that unless they are starting with a high price and possibly lowering it, I don't know. I mean, if you go to Wendy's and pay some insane rush hour price, who's going back?

 

[temery]

Given everything I have been reading, one of the main things people have stopped doing since the pandemic is paying too much for fast food and top brands because of the price gouging. Even McDonalds admitted they went too far. How this alleviates that unless they are starting with a high price and possibly lowering it, I don't know. I mean, if you go to Wendy's and pay some insane rush hour price, who's going back?

When I was a kid McDonald's had trays behind the counter, one for each item they sold. There were eight or so Q pounders with cheese, Big Macs, etc. Anything older than 20 min was thrown out.

I can see them having a base price (the highest) for each item. and dropping the price for anything close to be thrown away.

 

[Deepster]

I’m cracking up at the “I don’t eat fast food” replies.

You know how obese America is, right? We didn’t get this way from too many croutons on our salad.

 

[HCCForever]

I’m cracking up at the “I don’t eat fast food” replies.

You know how obese America is, right? We didn’t get this way from too many croutons on our salad

I resemble that remark but sweets and beer are my undoing not fast food.

 

[Huskyforlife]

I’m cracking up at the “I don’t eat fast food” replies.

You know how obese America is, right? We didn’t get this way from too many croutons on our salad.

Too many croutons could actually be a problem for some people.

 

[superjohn]

Fast food has always been disgusting and it's no longer cheap. I don't know why anyone would ever eat it outside of an airport.

 

[Dove]

Don't eat fast food. An apple costs the same at 8 am and 10 am.

Have you ever dipped a piece of apple in BBQ sauce? Didn't think so.

 

[WhereistheDove?]

Customers don’t really have a choice. They do if they band together for long enough, but you’re talking about grabbing something in an airport between flights or after your kids soccer practice. The corporations know that.

Generally there is not only one fast food location somewhere. If customers just decide to go somewhere else when they’re piloting this, it will not catch on. If it catches on and all start doing it, I agree there will be no more choice. I’m skeptical.

 

[NJHusky]

They aren’t going to lower prices in slack times, just raise them. Great way to ensure people stop going there

 

[WhereistheDove?]

They aren’t going to lower prices in slack times, just raise them. Great way to ensure people stop going there

They’re going to do whatever makes them the most money. It very well may be reduced prices during less busy periods to try to offset the overhead/labor during those times.

 

[Leebo]

Mmm, could really go for some Wendy's now.