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I don't think there's a single restaurant on the planet with a line that runs with the same labour cost at 11 PM as they do at 6 PM.
by SketchySeaBeast 3y ago
I don't think there's a single restaurant on the planet with a line that runs with the same labour cost at 11 PM as they do at 6 PM.
- ethbr1 3y agoYou're missing the point. It's normalized against sales volume. So it doesn't matter if the late night restaurant is quarter-staffed, if they only do a tenth of the sales volume.
- SketchySeaBeast 3y agoNo, I got your point, I'm saying that partial mitigations for that are already in place. Every business on the planet also assumes there will be slow times and busy times, and the busy times will make up for the slow. Surge pricing only really works when the demand and supply can be elastic, and a Wendy's restaurant is a bad example.
- ethbr1 3y agoAveraging prices over expected volumes is inefficient though: you're essentially screwing some people over to recoup it from others. Why not true price if you have the ability? Previously, it wasn't possible because of printed menu costs. Now it is. And I feel like food prices can absolutely be elastic, with a notification method like app pushes. If the local Wendy's says they're selling burgers at $2 because they're slow today, more people might decide to go. And critically (and what this is probably really about) they can reprice in real-time in relation to their neighboring alternatives. I.e. McDonald's across the street discounts their cheeseburger, Wendy's can mimic That's what this stuff is really used for when retail adopted it.