Diners Have Negative Reaction to Surge and Dynamic Pricing

Eighty-one percent of diners said they would either stop going to a restaurant altogether or alter their dining hours to avoid prices surging during peak hours and 64 percent said they have a negative reaction to restaurants using surge and dynamic pricing, according to a HungerRush’s National Restaurant Price Surging Survey.“This is an alarming statistic for restaurant owners and operators, potentially leading to an increase in lost revenue or creating new peak hours,” Bill Mitchell, Executive Chairman of HungerRush, and former President of Global Operations of Papa John’s International, told Modern Restaurant Management (MRM) magazine. “At a time when restaurants are continuing to face increased costs of operation, owners must be cognizant of not only the customer experience but also the impacts their changes will have on loyalty patterns. Twenty-two percent of diners reported that if a restaurant they frequently visit adopted surge or dynamic pricing, they would cease…