The Dynamics of Dynamic Pricing

Welcome back to another edition of the IFBTA Insider. Since our last release, The Wendy's Company received mainstream news coverage after announcing it was investing in technology and introducing dynamic pricing beginning in 2025. After receiving backlash and being referred to as 'surge pricing' by many news outlets Wendy's responded they would be introducing this system as a cost-lowering measure.

So let's clarify - what is dynamic pricing?

Dynamic pricing involves charging more when demand increases and lowering prices during a forecasted sales slump. Happy hour is one common example of dynamic pricing being used to lower prices during slower hours of operation.

What is surge pricing?

Surge pricing is a type of dynamic pricing. It refers to a system where cost increases temporarily at times of high demand. Ride-sharing apps like Uber deploy surge pricing when passenger demand exceeds driver supply.

In summary, dynamic pricing models do not necessarily deploy surge pricing. However, in times of high inflation, cost-cutting, and public distrust of technology, it's more important than ever for foodservice operators to be transparent and educate how investments in technology will help the consumer.

Celebrating Technology at MURTEC 2024

Last week, the IFBTA and industry professionals came together to network, enjoy desserts, drinks, and discuss the future of the restaurant industry. As we reflect on conversations from MURTEC and within the industry, it’s clear AI isn’t going away anytime soon. Whether it's used in Front of House, Back of House, or the Drive-Thru, the ways AI will be used is being constantly contemplated.

Data and analytics, ChatGPT, and digital transformation continued to be at the center of conversations in Las Vegas. Many attendees were primed and ready to address how these new tools and technologies could better create operational efficiencies and impact both their employees and customers in positive ways.

The conference kicked off with an inspirational keynote from "Unreasonable Hospitality" author, Will Guidara , and ended with a panel (including the IFBTA's own Virtual Chapter Chair, Chris Incorvati ) discussing the ways to engage, reach, and wow guests at every stage of the customer journey. We are excited to continue the sharing of ideas and resources that came from MURTEC as we engage with members throughout the rest of the year.

Bar and Restaurant Expo 2024

At the Bar & Restaurant Expo , Rob Grimes delivered his TechVision 2050: The Future of F&B presentation. Attendees went on a culinary journey into the future as they explored the transformative impact of technology on the F&B experience.?Charting a course to 2050, the audience was asked to consider the possible, take in the present, envision the future, and revisit past ideas that emerged before their time.?

Guests got a look at how these advancements enhance customer engagement, streamline operations, and create a more sustainable and personalized dining landscape.

Upcoming Industry Events & In-Person Networking Opportunities

IFBTA + Infor Webinar: Thriving in the Restaurant Industry: Trends, Challenges and Innovations

• Tuesday, April 9 2024, 1:00 PM - 2:00 PM (ET)
• Online - Register Now
• Join IFTBA CEO, Rob Grimes as he sits down with White Castle ’s CIO Susan Carroll-Boser and 恩富软件 ’s Senior Director of Hospitality Software Development, Rick Kuhlmann for to dive into the restaurant industry's current landscape. The panel will tackle the topics of labor shortages, harnessing AI, enhancing customer relations, and integrating technology for enhanced customer experiences. Gain practical strategies to stay ahead in this competitive field.

IFBTA Southern California Chapter Meeting (Q2 2024)

• Tuesday, April 23, 2024, 6:00 PM - 8:00 PM
• SOL Mexican Cocina - 910 Main Street Irvine, CA 92614
• Chapter Chairs: Michael English , Technology Head, In-N-Out Burger, and Yvette Arellano , Senior IT Manager, Miguel's and Miguel's Jr.

IFBTA Chicago Chapter Meeting (Q2 2024)

• Wednesday, April 24, 2024, 6:00 PM - 8:00 PM
• Portillo's HQ - 32001 Spring Road Suite 400 Oak Brook, IL 60523
• Chapter Chairs: Samuel Stanovich ?? - SVP Franchise Leadership, Big Chicken , and Douglas Davis , Information Systems Coordination, Monicals’s Pizza.

IFBTA Washington D.C. Chapter Meeting (Q2 2024)

• Tuesday, April 30, 2024, 6:00 PM - 8:00 PM
• Hunter's Bar & Grill - 10123 River Rd, Potomac, MD 20854
• Chapter Chairs: Kathleen Chugh - CIO, Nando's, and Todd Kaufman , VP of IT, SSP America.

IFBTA Atlanta Chapter Meeting (Q2 2024)

• Wednesday, May 01, 2024, 6:00 PM - 8:00 PM
• Gypsy Kitchen - 3035 Peachtree Road NE, Suite A209, Atlanta, GA 30305
• Chapter Chairs: Kevin Bentley, MBA, MSIS, CSM, Prosci - VP, Head of Technology, Jollibee Group of Companies, and Jared Hinshaw, PMP? , Sr. Director IT, PMO, Inspire .

IFBTA Central Florida Chapter Meeting (Q2 2024)

• Thursday, May 02, 2024, 6:00 PM - 8:00 PM
• Luke's Kitchen & Bar - 640 S Orlando Ave, Maitland, FL, 32751
• Chapter Chairs: Lori Ness , Director of Store Systems, Hard Rock Cafe , Elizabeth Ochoa , Director, Payment Technology Services, Universal Orlando Resort, and Tom Seeker , CIO, Earl Enterprises.

IFBTA Dallas Chapter Meeting (Q2 2024)

• Wednesday, May 08, 2024, 6:00 PM - 8:00 PM
• Blue Mesa - 14866 Montfort Drive, Dallas, TX 75254
• Chapter Chairs: Carissa De Santis, PMP? , CTO, BRIX Holdings , and John Doyle , CIO, Fiesta Restaurant Group, Inc.

Celebration of Technology at The National Restaurant Show

• Sunday, May 19, 2024, 6:30 PM - 10:00 PM
• Centennial Crafted Beer & Eatery - 733 N. LaSalle Drive, Chicago, IL 60654
• Join the International Food and Beverage Technology Association (IFBTA), CHART - Council of Hotel and Restaurant Trainers and your professional peers for a Celebration of Technology in Chicago during the National Restaurant Show. This celebration will feature flavorful food and drinks in a beautiful venue where you can network and relax with other attendees in the industry. We look forward to seeing you there! *Please note, this event is open to IFBTA?members and operator supporters. If you are a non-member supplier, please contact Terri Fisher-Berkey at [email protected] before registering.

Scale Computing Platform Summit

• April 16-18, 2024
• Resort World, Las Vegas
• Register to enjoy networking opportunities, and educational and best practices sessions with industry-leading speaker presentations. The event will consist of both live and virtual sessions, with agenda topics including the power of automation and security, data protection, hybrid cloud, edge computing, and more. This year's program features a curated speaker lineup of technology leaders from key Scale Computing customers who will offer expert insights on the use of virtualization technology, artificial intelligence, automation, and more.

Explore Xchange

A Simpler Way to Search for Food and Beverage Technology

As the world of technological innovation continues to expand, the IFBTA has launched a new platform which we hope will lighten the burden of the technology search process.

Xchange Gives Users the Ability to Make their Technology Search Simpler

• Apply multiple categories to narrow down options.
• Can be sorted by the user in a variety of ways, including by Application, Geography, Industry, Department, and more.

Company Listings are Free and Many are Already Live on Xchange

• Listings are completely customizable. Select applicable filters, upload videos & photos, articles, & more.
• Features a dashboard of analytics including page views, website visits, and how often your company appears in searches.

(xchange.ifbta.org )

In the News

The Wendy's Company is set to test dynamic pricing and expand investments in technology beginning in 2025. "We are planning to invest approximately $20 million to roll out digital menu boards to all U.S. company-operated restaurants by the end of 2025,” CEO Kirk Tanner said, “and approximately $10 million over the next two years to support digital menu board enhancements for the global system.”

Read this and other takeaways from Ron Ruggless at Nation's Restaurant News

Watch the latest episode of ACCELERATE: Foodservice & Hospitality Tech Show

IFBTA's weekly podcast about the evolution of the Foodservice and Hospitality industries. TechNovator and leading voice of F&B technology, Rob Grimes , presents engaging conversations through a lens outside of the norm, featuring thought-leaders from a variety of industries, and teaches you how to create opportunities to accelerate your business.

None of this would be possible without the help of our supporting members. Thank You.

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