RESTAURANT STRATEGY CRAZY IDEA - Is Dynamic Pricing the Only Way Forward?
Jul 24, 2025
This discussion dives into the intriguing world of dynamic pricing and its potential to revolutionize restaurant profitability. The concept draws parallels with industries like airlines and hotels, exploring how restaurants can adapt to modern consumer expectations. It emphasizes the importance of flexibility and technology in optimizing prices based on demand. Ultimately, the conversation challenges traditional pricing models and advocates for a fresh perspective on revenue strategies in the dining sector.
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Dynamic Pricing Is Not New
- Dynamic pricing is already part of the restaurant industry with market-price seafood items.
- Like airlines and hotels, restaurants can and should expand this pricing strategy more broadly to other items and times.
Align Prices with Demand
- Restaurants should align prices with supply and demand, charging more when demand peaks.
- This pricing reflects the value of dining on popular days like Fridays and weekends.
Alinea's Tasting Menu Pricing Example
- Alinea in Chicago charges less for its tasting menu on Wednesdays than Saturdays.
- They leverage demand differences to optimize revenue and attract guests on slower nights.
