MRM EXCLUSIVE: Can Dynamic Pricing Be Done Right?

While two-thirds of guests say they would not dine at a restaurant that uses dynamic pricing, interest increases when the concept is framed as a discount offered through a membership for off-peak hours, according to the Summer 2024 Consumer Trends Report from Provoke Insights in collaboration with Modern Restaurant Management (MRM) magazine. In that case, more than half would be interested in joining a membership to receive discounted offerings. This is particularly relevant for urban residents, parents, and individuals looking to save money.

"Dynamic pricing has garnered a negative perception because patrons do not understand the benefits it provides. As a result, restaurants need to emphasize the benefits and promotions that this approach offers," said Carly Fink, President, Head of Research & Strategy for Provoke Insights. "For example, instead of emphasizing that prices increase during peak hours, restaurants should promote discounts on pricing during off-peak hours."

Among…