A ladle ... Dynamic Pricing in the restaurant

Dynamic pricing describes flexible, often automated pricing that is based on individually defined factors such as demand, stock levels, capacity utilisation or purchase prices. For example, if salmon is particularly cheap when purchased, the restaurateur offers the salmon dish on the menu at a lower price than last week and communicates this transparently to his guests. Is this far too time-consuming for restaurateurs? Not at all, say experts. A simple, time-based form of dynamic pricing has actually been established in the catering scene for years: Many restaurateurs use happy hour to specifically capitalise on peaks in demand.

Christoph, what specific advantages does dynamic pricing bring for catering businesses?

Dynamic pricing enables fair and improved conditions for both the guests and the restaurateurs themselves. The clear advantage for the guest: if asparagus is particularly cheap in the peak season, for example, they pay less. This creates price transparency and strengthens trust. At the same time, dynamic prices solve a core problem for many restaurateurs: the calculated margins remain stable - even with volatile purchase prices. This creates planning security. However, dynamic pricing not only brings economic benefits. By offering more attractive prices, caterers can sell food that is about to expire more quickly and thus reduce food waste. For those with a digital affinity, automated price calculation can significantly reduce the workload on staff by eliminating manual labour.

How can a catering business implement dynamic pricing technically - which digital tools or platforms are required for this?

Basically, dynamic pricing is universally applicable for all catering businesses, whether in a small bistro or a large system catering business. Restaurateurs do not need to be technology professionals to use it. Simple basic digital equipment is all they need to get started. The basis is a digital menu , which can be accessed via a QR code on your own website, for example, and whose prices can be flexibly adjusted by the restaurateur. He records purchase prices manually, for example in Excel or Google Sheets, and calculates and records the prices of the dishes on the digital menu and in the POS system. Regular discounts on certain days of the week or when the best-before date is approaching can also be mapped manually. Those who already feel confident in the digital world can exploit even more potential for optimising sales and profits with advanced systems. Modern technology and a good database are an important prerequisite for this. Companies then use software with API interfaces (a link so that different systems can communicate with each other) that can automatically link data from merchandise management, cash register systems, supplier portals or even external sources such as weather and events. Artificial intelligence is also used here: the AI analyses the data, recognises patterns in purchasing behaviour or demand and adjusts prices intelligently and in real time. The software automatically enters the prices into digital menus and checkout systems.

What can be stumbling blocks to dynamic pricing and how can they be eliminated?

The biggest pitfall of dynamic pricing is a lack of transparency. Price changes must be easy for guests to understand. Basic trust and reliability are particularly important with dynamic prices. If prices fluctuate too much or the restaurateur changes the price every minute, mistrust arises. Fixed price ranges and time frames curb the fluctuations. It is essential that employees are well involved and trained in the process in order to be able to respond to guests' questions and clear up any ambiguities. Experience shows that fairness is well received: purchase price-based models such as the "Fresh fish of the day - price depends on market purchase" call or the long-established happy hour have been learnt and are often popular. In order to remove individual stumbling blocks, feedback from guests is important. Direct conversations, surveys using QR codes on tables or online evaluations capture the mood. However, it is also possible to use data-based sales data from modern POS systems: Which dishes are ordered more or less, when and at what prices? But beware, just as people make mistakes, technology is not perfect - especially when many systems interact. Incorrect data or algorithms can lead to incorrect information. Are the calculated prices plausible? Careful data maintenance and regular checks work wonders and prevent problems.