Provoke Insights explores customer perceptions and strategizes for effective ways to implement dynamic pricing in restaurants.

Modern Restaurant Management presents the research findings of an April 2024 trends report by Provoke Insights. The article delves into the concept of dynamic pricing in the restaurant industry, discussing its potential benefits and pitfalls. It highlights the importance of implementing dynamic pricing strategies effectively to boost revenue without alienating customers. Initially met with skepticism, dynamic pricing gains favor when framed as discounts through membership programs for off-peak hours, with over half of consumers expressing keen interest in such initiatives.

Some noteworthy insights include:  

• Dynamic pricing refers to the practice of adjusting menu prices based on various factors such as demand, time of day, or level of patronage.
• Awareness of dynamic pricing is low among Americans, with urban dwellers and parents more likely to be familiar with the concept.
• Two-thirds of consumers are initially averse to dining at restaurants using dynamic pricing, however, interest in dynamic pricing increases significantly when presented as discounts offered through off-peak hour memberships
• Restaurants should emphasize the benefits and discounts of dynamic pricing rather than focusing on peak-hour price increases to improve consumer perception and engagement.