yRaz
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Dynamic pricing in hotels is nothing new, you're right, but it is predictive, not just real-time. Same thing applies to airplane tickets.It's hilarious everyone is losing their **** over this but hotels have done the same thing for years. It's the same service, same bed, same goddamn room no matter what day of the week it is.
Less about people losing their **** and more them expressing their dislike of a system using their wallets.It's hilarious everyone is losing their **** over this but hotels have done the same thing for years. It's the same service, same bed, same goddamn room no matter what day of the week it is.
The difference vs. Uber is the Uber process already involved looking at your phone ahead of time for the price and wait. This step was already factored into a process that consumers generally find convenient enough for the value received.
Wendy's is in a completely different situation. Consumers expect they know the price without having to check their phone first, and many will not want to add this new step to a fast food restaurant experience whose primary selling point is convenience. Those who travel to the store first, and only then find out the pricing has "surged" unexpectedly, are rightly going to be angry. We're talking the kind of anger that people carry a grudge over, not the kind you forget a minute later. My expectation is many of those customers will not return to Wendy's again. And if Wendy's had any advertising or signage with a lower price, Wendy's can also expect actionable consumer complaints over deceptive pricing.
A related but different complaint would apply if it is per-item "surge" pricing as opposed to just a general adjustment that applies the same to all items on the menu. If a customer puts an order together in their head, and then finds that out that specific order got hammered on price before they even had a chance to place it, they will likely be upset. Now imagine that happens with a family of six. That's another family that will never associate "Wendy's" with "convenience" again.
I'm a tech enthusiast but this is an area where the old low-tech way is superior to this new high-tech way. Make your normal pricing the "surge" pricing, and then advertise discounts for non-surge periods like "Happy Hours" and "Senior Blue Light specials" or whatever you want to call the less crowded hours. Everyone is already comfortable with that model, it is simple to communicate, and requires no additional investments in technology.
It's never about the customer. If too many go at the more discounted time, the establishment will adjust pricing accordingly to offset those losses.Despite the horse-and-buggy crowd crying foul, this actually sounds like a great idea. For one thing, the prices aren't going to fluctuate dramatically -- not nearly as badly as Uber. (In leaving a large event, I've seen a ride go from $15 to $90 in a few minutes time).
Furthermore, the article ignores the very real benefits this will have for consumers. Yes, for consumers. If you're a price-conscious individual for whom a $1 difference matters -- you'll try to lunch a little earlier or later. And if that price delta doesn't bother you, why you'll get your burger even faster, as the peak crowds will now spread out more over time.
From the perspective of economic efficiency, it makes little sense that these facilities sit near-idle for most of the day, while 90% of their business is crammed into 2 or 3 brief peaks. Anything that improves overall efficiency, eventually helps us all.
Furthermore, the article ignores the very real benefits this will have for consumers. Yes, for consumers. If you're a price-conscious individual for whom a $1 difference matters -- you'll try to lunch a little earlier or later. And if that price delta doesn't bother you, why you'll get your burger even faster, as the peak crowds will now spread out more over time.
Agreed. (First off, I'm not a consumer, I'm a customer.) I don't see this benefiting the customer, the customer is not going earlier or later to "save" a dollar -- they are having to go earlier or later to avoid paying an EXTRA dollar. If they had a happy hour where prices were reduced, then sure. But the plan, as described, was not planning to do this.It's never about the customer. If too many go at the more discounted time, the establishment will adjust pricing accordingly to offset those losses.
Let me remind you a Big Mac combo is what, $12 now? Remember how cheap streaming packages were in the early days?
I can't say dynamic will fail, but if we're talking about it before it officially happens, I'm gonna go with my gut based on the history of how businesses tradionally work.
Wendy's would rather you to take the $90 dollar ride over the $15 one...
I'm staggered that Wendy's doesn't have digital menus. In Australia, all the major chains (McD's, KFC etc etc) have digital menus. I haven't seen major chain fast food with a non-LCD screen menu for years.
Surge pricing is an interesting concept that won't work. Consumers will vote with their feet.
Yeah, this is a disincentive to provide quick service. Imagine all the Wendy's managers out there slowing down their production lines on purpose in order to inflate the revenue they take in during peak hours. Wait times can already be ridiculous, but this would ensure longer lines and higher prices.Fast food is in serious trouble, they are pricing themselves out of the market. Surge pricing only pisses people off, and they will stop going. If I have to do fast food, its chick fil A, or culvers. Most of the time I'd prefer an actual restaurant, for an extra $3 I'll get actual food.
Not to mention, Wendys management is garbage and has been for years. They cant keep employees or train the ones they have. And now, they are turning "high demand" caused by a tiny workforce into a way to make more money.
I'm surprised they didn't get some kind of bespoke hardware (even if it was USB-driven or something) to run a bunch of heads off a single NUC. Although the NUCs are pretty cheap so I guess.(speaking from my last job) To fully outfit a new Wendy's location with drive thru and inside menu boards - it would vary from usually around 5 to 12 TVs. Most TVs had their own NUC attached to them (sometimes you could run two TVs from one NUC, depending on the hardware and software options you were willing to purchase) and any TV outside needed to be housed in casing with climate control options. In the end, you're looking at $5k to $15k per install location. Either a lot of Wendy store locations already have digital menu boards and $20mil is enough to cover the cost for the remaining stores or whomever is in charge of rolling this project out is grossly out of their league and they have no idea for the cost of product and installation costs.
Wait times are hammered from the DMs and owners - the store managers better be on top of keeping the wait times in the allotted range or they're going to find themselves kicked to the curb. People are there for the "fast" aspect of the business. If the store cannot keep the wait times in check they tend to lose business because a lot of people are not willing to wait.Yeah, this is a disincentive to provide quick service. Imagine all the Wendy's managers out there slowing down their production lines on purpose in order to inflate the revenue they take in during peak hours. Wait times can already be ridiculous, but this would ensure longer lines and higher prices.
It could very well be different now, I left that company almost 10 years ago now. At the time they were just starting to get their software to allow multiple monitors to run off one NUC and display different images to both TVs. Before that each TV required it's own NUC.I'm surprised they didn't get some kind of bespoke hardware (even if it was USB-driven or something) to run a bunch of heads off a single NUC. Although the NUCs are pretty cheap so I guess.
That's one thing I can't complain about about the Wendy's here. I haven't been there in quite a while (I don't care to spend $10-15 for a burger and fries... and when I would get those late night cravings, well, they are closed by then now.) BUT they actually apologized for the wait once after I probably waited 90 seconds (not waiting at the window, I was in a line where they served 5-6 cars in like 60-90 seconds flat.) It's probably the fastest drivethrough I've ever been too, kudos to their manager or procedures or kitchen layout or whatever, they are considerably faster than the McDonalds are in the area.Wait times are hammered from the DMs and owners - the store managers better be on top of keeping the wait times in the allotted range or they're going to find themselves kicked to the curb. People are there for the "fast" aspect of the business. If the store cannot keep the wait times in check they tend to lose business because a lot of people are not willing to wait.
Yet McDonalds' profit margins are no higher than they were in the 1980s. You want to blame McDonald's for Bidenflation?Let me remind you a Big Mac combo is what, $12 now?
Sure. Most companies are willing to offer a new product at a loss, to generate market share. Do you believe they can defy the laws of economics and do that forever?Remember how cheap streaming packages were in the early days?
You realize that customer-facing managers aren't scored on revenue, but rather metrics dealing with customers served, right?Imagine all the Wendy's managers out there slowing down their production lines on purpose in order to inflate the revenue they take in
That rules out most of the big players.I wonder who will buy the wendys bldg near me when it goes out of business? I hope its a place with some common sense.
lol This is political now? Shocker. Newsflash: It's not.Yet McDonalds' profit margins are no higher than they were in the 1980s. You want to blame McDonald's for Bidenflation?
Sure. Most companies are willing to offer a new product at a loss, to generate market share. Do you believe they can defy the laws of economics and do that forever?
You realize that customer-facing managers aren't scored on revenue, but rather metrics dealing with customers served, right?
Oops! Actually, yes it IS still happening -- and happening exactly as I claimed it would. Rather than drastically raise prices during peak hours, Wendys clarified to state they would instead only lower prices during off-peak hours.sorry. It's not happening by the way if you read the update on this story, so I guess dynamic pricing wasn't a good thing for consumers like you claimed.
A set time is not dynamic is it?Oops! Actually, yes it IS still happening -- and happening exactly as I claimed it would. Rather than drastically raise prices during peak hours, Wendys clarified to state they would instead only lower prices during off-peak hours.