Expect Another Surge in Food Prices Fueled by Dynamic Pricing

Restaurants are moving towards dynamic menu prices. Expect big surcharges for peak times. Don’t expect off peak prices to drop much. Labor costs are rising too.

CPI food indexes prices, data from the BLS, chart by Mish

Surge Pricing Is Coming to You

Restaurants are experimenting with surge pricing to deal with peak hours and staffing demand. They like it. You probably won’t.

The Wall Street Journal reports Surge Pricing Is Coming to More Menus Near You

Restaurants like San Diego-based Cali BBQ are experimenting with a form of the dynamic pricing long used by airlines, hotels and ride-hailing services. Technology providers are pitching services that enable restaurants to change prices weekly or monthly, increasing or slashing the cost of a taco or sandwich between a few quarters to several dollars, depending on demand and sales patterns.

Dynamic pricing—charging higher rates at peak times and dropping them at slower ones—has become commonplace in industries such as e-commerce, and mobile apps have made it easier for companies to study consumers’ buying and browsing and quickly adapt. Rising costs in recent years have led more retailers to implement it.

Restaurants are experimenting with the technology as the industry looks for ways to boost sales and increase profits. Many restaurants increased menu prices as labor, food and other costs have soared since 2021.

Wendy’s drew public scrutiny after the burger chain said in a mid-February earnings call that it was looking to test dynamic pricing. The chain said it would invest around $20 million in its U.S. restaurants to install digital menu boards by 2025 that could suggest items to customers and present different offerings depending on the time of day.

Other restaurants, particularly sit-down ones, are charging more for prime seats during peak hours. Gene and Georgetti, a historic Chicago steakhouse where Frank Sinatra once regularly dined, in late 2022 implemented dynamic pricing on two booths frequented by celebrity customers. Diners typically pay a $20 fee when they book the booths at busy hours, helping counterbalance the restaurant’s rising expenses, managing partner Michelle Durpetti said.

While some consumers tend to resent surge pricing, as Wendy’s discovered last month, they like happy-hour discounts and other deals at slow times, industry consultants said.

Discount Pricing

People like discounts. But that’s not how it will work.

Instead, prices will go up across the board. Then to get the discount you will have to go off peak. And so on and so forth.

CPI Food Index Levels at Home vs Away percent change from Year Ago

CPI food prices percent change from a year ago, data from the BLS, chart by Mish

Three Major CPI Food Categories Month-Over-Month

CPI food prices percent change from a year ago, data from the BLS, chart by Mish

Month-over-month food prices have bottomed. Expect food prices to put upward pressure on the CPI.

Cheeseburger Prices Soaring

On March 8, I noted Skyrocketing Costs Driving Cheeseburger Prices Up

In January, 59% of small-business owners reported higher labor costs were their biggest source of inflation, according to a survey of more than 425 entrepreneurs conducted for The Wall Street Journal by Vistage Worldwide, a business-coaching and peer-advisory firm.

Cost of Running a McDonalds

In California, The Cost of Running a McDonalds Jumps $250,000 Due to Minimum Wage Hikes

California already has some of the highest fast food prices in the nation. Expect to pay still more, and not just in California.

Concerns Over inflation and Employment

ISM Services weakened slightly mainly due to a contraction in employment and faster deliveries. Prices remain a concern. The report hints at stagflation.

ISM chart and excerpts below by permission from the Institute for Supply Management® ISM®

On March 5, I noted ISM Services Respondents Share Concerns Over inflation and Employment

Price inflation is notable. Prices are up 81 consecutive months. 58.6 percent of respondents say prices rose in February, That’s down from a whopping 64 percent last month.

The report is a mixed bag that hints at stagflation. It does not suggest imminent rate cuts by the Fed.

70 Percent of the CPI Is Sticky

Some prices change frequently, notably gasoline. Most of the CPI changes infrequently. This post takes a look at the Atlanta Fed Sticky price project.

Sticky and Flexible CPI data from the Atlanta Fed, CPI from the BLS, chart by Mish

On February 26, I noted 70 Percent of the CPI Is Sticky, Including Rent, Insurance, Food Away From Home

The year-over-year weakening of the CPI and the Sticky CPI is partly due the fact that the change in trend is itself sticky. However, the price of gasoline appears to have bottomed and perhaps food prices have too.

If so, some of the benefit of lower year-over-year trend in rent may get chewed up by a rise in flexible CPI components.

Finally, for the next few months, the year-over-year comparisons are a bit harder to beat. So even if the monthly rent measures ease from the 0.40 percent 29 month-over-month trend, there may not be much of an improvement in the year-over-year measures.

We Are Not Over the Rainbow

Let’s check in with former Fed Vice-Chair Alan Blinder and his soft landing thesis.

My Hoot of the Day on February 27 was Alan Blinder’s victory prognosis “The Fed Has Reached the Soft Landing Runway”

Hello Toto (Alan Blinder and Jerome Powell)

The tools that worked in 2003 are not what the Fed can rely on here.

Global wage arbitrage is gone. Just in time manufacturing is gone. Union wage contracts are soaring. Home prices are out of sight.

Demographics require more spending on healthcare with fewer workers contributing to Medicare and Social Security.

And that does not address the Fiscal Cliff that Powell Sees but Blinder doesn’t.

A soft landing is now the consensus estimate. I strongly disagree.

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Victoria "the Hutt" Nuland
Victoria “the Hutt” Nuland
2 months ago

Food price inflation here in South Korea is through the roof. I even saw a post on the Korea subreddit about it regarding fresh fruit prices. I’ll be glad when Russia finally wins the war and US vassals states can import Russian energy and fertilizers again.

John Overington
John Overington
2 months ago

I don’t even see why you would comment on this. It’s supply and demand finally arriving at the restaurant. Why are the tables empty outside mealtimes? Why is meal pricing the same when demand is different? You are not simply buying the food on your plate but the whole support cost. The cost of the meal at busy times subsidizes the expenses at quiet times. Why not have a balance? It will sort itself out as customers get wise.

Casual Observer
Casual Observer
2 months ago

So we’ve not had a new currency effectively since the great depression. Inflation anywhere and everywhere is a monetary phenomenon. Too much money in the hands of increasingly more people and voila — you get unbridled inflation.

The Fed isn’t gonna be able to lower rates anytime soon. And the recession isn’t coming though we need one in order to get the cleansing effect the economy needs.

John Wick
John Wick
2 months ago

Yes because so much of those dollars ended up on Main Street. Weve been using $20s as sanitary wipes, because of all the dollars ended up on Main Street.

Stop this. Too much money ended up offshore and in the hands of the money changers. The “inflation” is engineered bullshtt from the Bolshoi state, wishing to centralize and socialize via corporate proxy.

But people can go reciting their canons on “too much money in peoples hands”.

Casual Observer
Casual Observer
2 months ago

Price gouging is what’s going on. It is literally a fight for every possible dollar. Consumers can’t seem to say no. The wealth effect of stocks and housing is still in play.

John Wick
John Wick
2 months ago

Why are people up in arms about this? The restaurant industry has no pricing power, especially now that product has really become different levels of awful across the board (except for a few).

This isnt price gouging. For the moment, you have choice. Place wants to play games with pricing, go somewhere else. If they all start doing it, then it makes an opportunity for the business who chooses not to.

The Window Cleaner
The Window Cleaner
2 months ago

Paradigm changes are the most beneficial, progressive and permanent phenomena that humanity has ever experienced. So much so that everyone whether they agree with it or must be brought kicking and screamingly to cognition about them eventually accept.

I’m sure when man discovered how to utilize fire, alot of the tribe first thought they were treading on something only god should have the power to create. When some of the tribe started to homestead, urbanize and learned agriculture I’m sure alot thought they were stupid probably going to die. And when the new monetary paradigm doubles your purchasing power and resolves the major problems in the economy I’m sure some there are some who might even not sign up for the policies that will do it…until their wives hit them over their heads with a rolling pin because women know a good thing when they see it. Rolling pins, the instrument of paradigm perception.

Thetenyear
Thetenyear
2 months ago

The fine folks at Del Boca Vista are going to be pissed when they can’t get their usual dinner table at 4:00 #Seinfeld

Casual Observer
Casual Observer
2 months ago
Reply to  Thetenyear

They must be up to del boca Vista phase 20 by now.

Lisa_Hooker
Lisa_Hooker
2 months ago

If the US Government moved to Dynamic Taxation, they would not continually borrow themselves into debt crises. COD for what you want. Trust in god, all others must pay cash.

Jojo
Jojo
2 months ago
Reply to  Lisa_Hooker

That will occur when cash is eliminated and all money becomes electronic.

cas127
cas127
2 months ago

Dynamic demand dumping will alter corporate (and government) behavior pretty fast.

PreCambrian
PreCambrian
2 months ago

I haven’t eaten at restaurants much since Covid started. Last weekend I went to buy a sandwich at a good sandwich shop and it was $17. They used to be $8. Quite expensive in California.

Jojo
Jojo
2 months ago
Reply to  PreCambrian

I’ve started making my own sandwiches, just like when I was back in high school. I make a pretty decent tuna or egg salad sandwich, if I daresay.

Casual Observer
Casual Observer
2 months ago
Reply to  PreCambrian

I stopped eating out for lunch on most days. Wendy’s always has pretty good deals. Taco places owned by the cartel also have low prices. We get free lunch at work twice a week. Gotta save where you can.

The Window Cleaner
The Window Cleaner
2 months ago

Thanks Mish, for showing how 1) high percentage discounts at retail sale would STILL mathematically implement beneficial price and asset deflation despite such sneaky and unethical means of systemic inflation, 2) how libertarian’s acculturated aquiescence in and unconscious acceptance of the actual chaos that is the reality of the present system, can be resolved only by high percentage discounts and related rational policies and 3) edging libertarians and other “austerians” toward the realization that paradigm change, not rigid orthodoxy, is what is necessary in the money system and economy.

The Window Cleaner
The Window Cleaner
2 months ago

Oh, and I forgot…how utilizing the tool of double entry bookkeeping where equal depits and credits sum to zero at retail sale would mathematically double everyone’s purchasing power…without increasing commercial costs by even a cent.

Jojo
Jojo
2 months ago

Humans are the problem!

The only solution is to replace human workers with robots wherever and whenever possible ASAP. If robots perform all the work, then everything should be free and everyone can stop complaining.

The WH should be spearheading an initiative to accelerate the deployment of robots and replacement of human workers.

dtj
dtj
2 months ago

I don’t go to resaturants often, but I did over the weekend. It’s nice to have someone else cook for you and clean up the dishes afterwards. Plus the atmosphere of a restaurant is part of what you’re paying for. I don’t go to fancy restaurants so the prices don’t dissuade me.

Laura
Laura
2 months ago

Prices are going to continue to increase (food and non-food). More businesses will close as they can’t afford to stay open.People will be voting with their pocket books.

Bam_Man
Bam_Man
2 months ago

We hardly ever eat out any more. The quality of the food and service has declined drastically in the past few years while prices have skyrocketed. My wife is an excellent cook and we have a large wine collection (1,000+ bottles) so we actually eat and drink better (and healthier) at home than we would out.

notaname
notaname
2 months ago

Food at home vs Food Out have nearly identical increases (25%). Why will this drive people home? Those “earlier generations” didn’t need 2 jobs plus a weekend side-hustle to buy a house.

Boomer’s with assets are getting rich (with Fed help) at the expense of those w/o assets (esp younger generations); get real and join us in today’s world. Stocks and housing need a crash (aka deinflation)! AOC for president – she’ll make it happen.

rjd1955
rjd1955
2 months ago
Reply to  notaname

Because it is more expensive to eat out. 25% on a $100 restaurant tab equates to $25 more. 25% on $20 worth of eat-at-home ingredients amounts to $5.

Sentient
Sentient
2 months ago
Reply to  rjd1955

Notaname’s math was done by a woman.

Call_Me_Al
Call_Me_Al
2 months ago
Reply to  notaname

The vast majority of “Boomers” with assets getting ‘rich’ aren’t doing it actively or by their design, that group of citizens largely got there by happenstance of when they were born. The Fed is helping the Fed’s owners, so don’t do their bidding by fanning intergenerational anger. The reason a corrupt system exists is because too many are fighting amongst themselves and ‘angry’ at the wrong people. Misdirection is a useful tool.

Oh, and if you think that former bar worker turned pop politician is going fix things, you might consider seeking another savior.

Stu
Stu
2 months ago

In my area of New England, Restaurants are continuing to hike menu prices. They are also continuing to hike labor cost. Expect this all to continue, until prices and wages fall back down, to levels that allow for restaurants to stay in business, or they won’t.

Instead, prices will go up, for now. Then staff will be reduced, quality will suffer, and then business will go away, and it will be too late to get it back by then. This has been happening in the inner cities, but is starting to spread outwards to the suburbs.

This all relates to the theory “Give people something for free, and they will want more of it”

Government suggested/mandated minimum wages, immediately crushed profit margins.
Long term Benefits are reduced hours, reduced staff, slower services, smaller portions, lower quality, less options. Ambiance cost reduced or gone. Benefits are no flowers, reduced heat/ac, lower quality cable/music, no extras allowed.

This could have, and should have been seen coming…

All will be affected, but extras first like dining out, golf, Then personal like haircuts, colors, extensions and the like. It’s not like this is the first time it’s happened.

David Olson
David Olson
2 months ago
Reply to  Stu
  1. Redistribution, increase the pay of the help. SEIU. This will come out of the ability to pay of the next people up the income ladder. Politics more equality is good. Economics 101, page on ‘price floors’.
  2. Standard of living, overall, declines.
  3. Blame the rich…!

The economy will adjust to the new circumstances. Our ancestors have been here before, and other people have been here before, or are living it right now. Britain has half the income we do, and higher taxes and no future except more suffering and decline.

Stu
Stu
2 months ago
Reply to  David Olson

> Redistribution
– If you’re referring to “Redistribution” as giving the same share of money, to a larger share of workers, but to do the same exact job, then Bingo!!! That however, decreases overall pay to everybody, due to more hours having to be worked, doing the same job, but longer hours, due to fewer people. All at less pay in the end.

– This will come out of the ability to pay the next people up the income ladder.
> The income ladder has been broken. You’re on it, own it, have it, but it’s in pieces and has become meaningless. So has the make believe “Standard” of living. It’s called a mirage. A picture of perfection with an unseen underbelly of flaws, simply too BIG to be seen, for now…

– Blame the rich…!
> That’s nearly everybody capable of working a job now days.

– The economy will adjust to the new circumstances.
> In several decades from now, they will be forced to, and it will be ugly to be sure.

– Our ancestors have been here before, and other people have been here before, or are living it right now.
> Yep, the Great Depression comes to mind, WWII, etc. Some are still living with it today still. No Thanks! You just don’t know, so why put yourself in the unforeseen situation at hand?

– Britain has half the income we do, and higher taxes and no future except more suffering and decline.
> I don’t care about Britain, but rather My Own Country…

Stu
Stu
2 months ago
Reply to  Stu

– Blame the rich…!
> That’s nearly everybody capable of working a job now days.

I was going to let this go, but I just can’t… I can only speak clearly from my experiences and in my location. Servers (ie. Waiters & Waitresses) are making roughly 60,000.00 per year bringing food to a table (Disclosure- I have family and friends that are well into the industry). I know, from friends with defense contractors, and the janitors who sweep the floors on 3’rd shift are making close to the same.

I could go on and on, but my point will be missed. It’s not the people or the jobs, but Society finding this to be acceptable pay for this level of work. A young couple in there 20’s, together since HS and in the restaurant industry or Union Job, together now, are making over $100,00.00 per year in combined income. Many, many fields have followed.

To me that’s insane, and explains why EV’s, Windmills, and Solar Panels got off of the ground!! It also explains why so many new cars are on the road, but I digress…

With this untenable IMO jump in pay, it makes everything instantly become more expensive. This is of course called Inflation, and rears it’s ugly head, each and every time, there is too much money throughout the economy, chasing too few of goods available, and especially the good stuff (I added the last part). Fast food, department stores, cashiers, etc, making on average $35,000.00 ($70,000.00 a couple).

Forget the Inflation excuses, and remember which came first, and which one followed. Also remember which one goes away the fastest, and which one sticks around the longest (in case you forgot). JS…

Doug78
Doug78
2 months ago

Go for the Earlybird special.

MPO45v2
MPO45v2
2 months ago
Reply to  Doug78

Not everyone wants dinner at 4 pm.

Doug78
Doug78
2 months ago
Reply to  MPO45v2

Then pay the high price.

cas127
cas127
2 months ago
Reply to  Doug78

Or just don’t go to over-priced restaurants. Dynamic or otherwise.

The consumer’s power is to simply say “No” and take their business elsewhere.

Falling revenue communicates (in the most effective way possible) that corporate HQ better focus on alternative solutions (read, lower – not higher – costs).

Or they are going to lose business.

Then go *out* of business.

And closed locations communicate (in the most effective way possible) to the stupid government that ham-brained “solutions” lead to bad outcomes (and $34 trillion dollar deficits).

No corporation or politician listens (at all) to talk.

They only pay attention to *action* (and only that that hurts *them*).

The power of the purse is still in the hands of the consumers.

Stop the whining and start the switching.

*Then* things will change.

And god-damned fast.

Maximus Minimus
Maximus Minimus
2 months ago

Happy hours have been here for a while. Other than that, the whole premise is preposterous. And I would avoid places “where Frank Sinatra (or any other celebrity) regularly dined”, even if a million dollar bag fell into my lap.

joedidee
joedidee
2 months ago

we RARELY go at regular time
happy hour is our norm – $60 for 2 people = really
for couple appetizers and 1 drink each
usually just cut ‘tip’
which should be optional – and only for exceptional service

for bday we took son/wife/kid + my wife and I out to Mr. Ans chop chop in front of you
$300+
way to much

joedidee
joedidee
2 months ago
Reply to  joedidee

oh and MANDATORY 18% gratuity – I take it off and pay cash so they can bitch all they want

Mises R Us
Mises R Us
2 months ago
Reply to  joedidee

When I see mandatory gratuity, I no longer patronize that place of business. I’ve seen it at both coffee shops and restaurants.

I essentially always leave an 18-20% tip at eateries, but coffee shop tipping is crossing the line. It takes a person all of 25 seconds to take my order and pour me a hot cup of coffee.

If you’re getting an 8 dollar latte with 50 add ons that takes ten minutes to make, sure. I can see where a tip may come into play.

Rjohnson
Rjohnson
2 months ago

Dynamic pricing lol. Never thought of that one. A few more years we’ll have pay to live another day meters next to our bed.

Some of these restaurants better find a way to motivate employees more but I dont really know how that’s possible. We drove 2 hours to a place yesterday and the kids that worked there were so rude taking our order we turned around and walked out. We were out for a drive also but it set the tone for the day and pretty much ruined it.

guest
guest
2 months ago

When will CPI factor in ‘dynamic’ pricing? Reader’s here observing ‘creep’ into all sectors are spot-on.

Eliminating fast food, if possible, is an excellent choice. As is reduced restaurant patronage. That food choice is like quitting smoking, your wealth increases as does your health, a win-win!

Our town council approved a scheme to use ‘dynamic pricing’ in their street-parking metering system a couple of years ago, along with a general parking rate increase of about 100%. Called it “demand management.”

That was the final ‘nail-in-the-coffin’ for many of the surviving, ‘local’ downtown enterprises. The parking emptied-out immediately. Nothing has been done about it, of course, except a recent initiative to ‘clean-up’ the sidewalks and abandoned business entrances that were immediately taken-over by fentanyl-addled homeless campers.

There are still tents on every block and the parking remains empty.

RedQueenRace
RedQueenRace
2 months ago
Reply to  guest

It will be factored into the CPI with an hedonic adjustment that assumes everyone eats at the cheapest time.

Not an Economist
Not an Economist
2 months ago

A fed that keeps signaling to the market it will cut when Services inflation has been clearly rising since 2nd half of last year, wage growth remains above productivity gains, unemployment near all time lows and real gdp growing. Yes you will likely get prices increases.

Richard F
Richard F
2 months ago

Although markets are all abuzz with talk of Fed rate cuts as immediately ahead, attempting to fix inflation with only tool being monetary policy has a serious defect.
That being restricting demand via credit control.

There has been no remedial work done at addressing supply chain shortfalls, energy policy, and lack of qualified skilled trades. Without increasing producers abilities, inflation’s true causes have not been addressed.

Second round inflation pressures have not abated. Until real reforms are enacted that encourage business to grow again, regular peoples ongoing living standards will deteriorate. For bulk of wage earners buying power continues to fall.

Servicing debt remains a major stumbling block to having a return of prosperity. Higher interest rates are baked into that cake being served up as consequence of sole reliance upon monetary policy.

Equity building is not occurring and debt enlargement based upon shrinking equity base is a game of musical chairs where there are only going to be unhappy Bagholders.

MPO45v2
MPO45v2
2 months ago
Reply to  Richard F

“Without increasing producers abilities, inflation’s true causes have not been addressed.”

BINGO! The Fed can hike to 100% or lower to -100% and toss free money out the helicopter but WHO is going to do the work?

An economy is the exchange of goods and services between people. If we have 80 million sitting around collecting social security or even working part-time doing trivial work, and only have 140 million to do productive work then the only outcome is massive wage and prices increases. There is no other way, what don’t people in power not get about this?

I should have warned everyone to put some Depends on because when you think about this deeply it will lead to unplanned bowel movements.

Here is a video about someone ranting about “what happened to the RV industry” and the blame is everywhere but ultimately, it’s a people (labor) problem.

link to youtube.com

Doug78
Doug78
2 months ago
Reply to  MPO45v2

High demand leads to lower quality because you can sell whatever you make.

Micheal Engel
Micheal Engel
2 months ago

The protein craze – supported by farmers, the food, and the health industries – should be stopped. Our body needs only 3%/5% protein/day. The excess is flushed, before destroying our kidneys, capillaries and bones. Protein increases acidity in our
body. It causes cancer and heart attack. The higher the price the better it is for our health. Let the rich people die first.

Micheal Engel
Micheal Engel
2 months ago
Reply to  Micheal Engel

Dr McDougall Utube talks about protein, today !

Doug78
Doug78
2 months ago
Reply to  Micheal Engel

We can’t eat grass. Cows can eat grass. We can eat cows. Cows have to eaten by predators otherwise the environment would degrade so if we don’t cows we would have to introduce predators who would kill them in horrible ways. I will do my part in nature by eating cows who have been killed humanly and painlessly. Besides they taste really good.

Jojo
Jojo
2 months ago
Reply to  Doug78

Besides they taste really good.”

Cooked, of course. I was thinking how happy cave people must have been when they discovered how to make fire and how much better cooked mastodon meat tasted!

rjd1955
rjd1955
2 months ago
Reply to  Micheal Engel

Our bodies require 8 ounces of 86-proof booze per day, 4 Krispy-Creme donuts, 1 32-oz. rib-eye steak with baked potato loaded with butter and sour cream, 8 cups of black coffee, 1 slice of chocolate cheesecake with a scoop of vanilla Haagen-Dazs ice-cream, 3 Monte-Cristo cigars, and 1 carrot stick. This is from the Surgeon General. I think it is called the ‘paleo diet’.

Jim
Jim
2 months ago
Reply to  rjd1955

This is the life. This is how centenarians live.

Jojo
Jojo
2 months ago
Reply to  Micheal Engel

Bullcrap! Protein need depends a lot on your body type and how much you exercise. What people REALLY need less of is sugar and salt.
—-
How Your Protein Needs Change as You Age
Your protein requirements will fluctuate throughout your life. Here’s a stage-by-stage guide to help you hit your goals.
By Alice Callahan
Published Nov. 30, 2023

Most people in the United States get plenty of protein each day. But that’s not a reason to stop paying attention to it, experts say.

Protein is essential for every function in your body, whether it’s building muscle, bone and collagen, digesting food or fighting infections, said Glenda Courtney-Martin, a nutrition scientist at the University of Toronto.

And how much you need fluctuates throughout your life, depending on how old you are, your body size and other circumstances. Sometimes, you may fall short without realizing it, said Stuart Phillips, a muscle physiologist and nutrition researcher at McMaster University in Ontario, Canada.

link to nytimes.com

KGB
KGB
2 months ago

“Life is hard. It’s harder if you don’t have enough sense to make a peanut butter and jelly sandwich.”
John Wayne

Eighthman
Eighthman
2 months ago

I do not understand why there isn’t more automation/kiosk ordering in fast food places. The staff is bored, tired and transient and they commonly don’t listen to your order. Replacing this seems like an easy win.

Jojo
Jojo
2 months ago
Reply to  Eighthman

I was reading that some fast food places are considering removing the lobby service and instead only offering drive through, which requires less people. This will also make it easier to finally move to an entire automated restaurant with no humans involved.

Jojo
Jojo
2 months ago
Reply to  Jojo

Just read a story on this today for Taco Bells in Oakland, cA. But it wasn’t in preparation for automation. It was because there are too many robberies in Oakland!

JimK
JimK
2 months ago
Reply to  Eighthman

Order kiosks take a minimum of a 30 – 45 seconds of tapping buttons to order and swiping your card. That’s really annoying when I can tell the human at the counter what I want in about 5 seconds.

eighthman
eighthman
2 months ago
Reply to  JimK

Again, they commonly aren’t paying attention. I have to repeat carefully and frequently find the order is wrong

MPO45v2
MPO45v2
2 months ago

Dynamic pricing = optimized capitalism. True free market capitalism involves prices changing to optimize profits for a business based on demand and supply.

For cars, some manufacturers were introducing “dynamic pricing” called “subscription” for heated seats or other features (turbo mode on Tesla) that were readily available on the car but not active without extra pay.

The toll roads work this way now, it costs more to get on the express tollways depending on the time of day. Auto insurance companies base their price on how many miles are driven per year, age of driver and risk factor. Actually most insurance is based on dynamic pricing.

The ongoing and upcoming labor shortages and 80 million retired people demanding goods and services will virtually guarantee that everything will go to dynamic pricing. Keep an eye on Florida, I expect it to have the largest imbalance of non working demanding goods and services to those working, especially with Desantis being hostile toward immigrants.

Jojo
Jojo
2 months ago
Reply to  MPO45v2

This is why everyone will need a personal server bot that will run clearance for them in everything, always aware of your needs and always looking for the best deal for you..

Flavia
Flavia
2 months ago
Reply to  Jojo

Just like in Wall-E!

MPO45v2
MPO45v2
2 months ago
Reply to  Jojo

My server bots are called InstaCart, Amazon, DoorDash, Uber & Uber eats. Technically, these bots are alive but they work just the same for now.

That reminds me, I gotta order some stuff now with a few clicks and it will magically appear at my door in a couple of hours.

Jojo
Jojo
2 months ago
Reply to  MPO45v2

If you’re looking for Chinese junk (and I buy my fair share), Temu is often cheaper than Amazon. The other week, I found a pulse oximeter that also does blood pressure for $25 on Temu. Seems to be reasonably accurate.

One big annoyance with Amazon is that they don’t have functionality to alert you when a product you are interested in hits a specific price point. So instead, you have to put alerts on at websites like slickdeals.com.

B R
B R
2 months ago

Watch the boycott begin on those who do… I will be dusting off my lunch box.

D. Heartland
D. Heartland
2 months ago

The article points to A.I. Anyone else HATE CHAT BOTS where you it take several tries to get to a real person. I was at Fidelity yesterday (missing my Feb Statement) and the BOT could NOT understand my question (“Where is my Statement?”). I gave up. This is the future NOW.

Rjohnson
Rjohnson
2 months ago
Reply to  D. Heartland

I hate the automated phone systems let alone AI crap. Everything is going to hell.

Lisa_Hooker
Lisa_Hooker
2 months ago
Reply to  Rjohnson

At an accelerating rate.

Jojo
Jojo
2 months ago
Reply to  D. Heartland

Just keep pressing 0 and yelling “agent” into the phone. Throw in some curse words also. These automated systems actually understand when voice volume changes and when curse words are used and will usually switch you to a human.

fast bear
fast bear
2 months ago
Reply to  D. Heartland

Correct!
We live within a complex system.
Distortions within a system can be absorbed with minimal disruptions, up to point?
Increase the amplitude or frequency of the reverberations, harmonics will bring about catastrophic destruction. Once system’s lose their ability to absorb distortions an inflection point is crossed and stasis recovery becomes impossible. ie. the Tacoma bridge collapse or the Bot at Fidelity.

link to youtube.com

IMO we have crossed the Rubicon to regain stability and like the bridge we are flapping like mad.
Our system is decaying: illiterate children; media lies; outright theft from rapacious greedy institutions like college & medicine; zero trust in government and elections; intergenerational warfare while everything is observed by the paranoid malignant surveillance state reading this post.

Ai is the death knell! Ai is just another destabilizing input. A fact spewing generator that exceeds our ability to verify its confabulations. Fake information machines spewing fountains of facts and mixed in with fiction, 24/7- 365 all under the control of evil people.

There is not floor to reality. It’s all fake

Six000MileYear
Six000MileYear
2 months ago

Not everyone can align their schedule to the off hours of dynamic pricing. Customers’ budgets are not as elastic as restaurants believe. I see more people changing their dining habits than paying more for peak time dining.

Bill Meyer
Bill Meyer
2 months ago

Mike, this story indicates moving forward that there’s even MORE incentive to cook at home and for some it will push restaurants more into a “special occasion” treat as it was in earlier generations. Prices have soared while quality in many cases has suffered. My wife is a fabulous cook and more often than not she’ll say “I could have made this better at home”, and she’s correct.

D. Heartland
D. Heartland
2 months ago
Reply to  Bill Meyer

We often say that now. We have a Gourmet Kitchen (so to speak) meaning that we have WOKS, Small and large pots, mixers, grinders, and every implement known to man. I can personally whip up French or Mexican or Indian herbs and spices with mixers and we even have a digital scale.

I can make a KILLER Mumbai style Butter Chicken. We have a RICE cooker that make perfect rice every time.

We do not need to eat out and will not – – not because we cannot afford to do it, but why give in to Surge Pricing and the deception?

Woodsie Guy
Woodsie Guy
2 months ago
Reply to  Bill Meyer

You’re better off eating at home anyway. Restaurant food is generally heavily processed and terrible for you.

Midnight
Midnight
2 months ago

Prices are never going down again. Bidenomics is working.

D. Heartland
D. Heartland
2 months ago
Reply to  Midnight

I up-voted you but to be technically correct, THE FED IS WORKING.

Mypillow
Mypillow
2 months ago
Reply to  D. Heartland

Dumb, dumb, dumb regulations have clearly juiced inflation such as the EV mandates and the cancelation of fossil fuel projects. Inflation is always a policy. Joe owns this mess plain and simple.

David Olson
David Olson
2 months ago
Reply to  D. Heartland

It takes two to make an inflation mess:

  1. The Biden government spends beyond its means.
  2. The Fed prints money, buy government bonds, monetizes the excess spending.

The result is a good deal for those with “first access to money”, and inflation for everyone, and destruction of society proportional to how badly the government abuses spending.

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