Dynamic pricing is nothing new. It’s a well-established practice in industries like airlines and hotels, and even within restaurants through Happy Hours and Early Bird Specials. But as Shawn Walchef, owner of Cali BBQ shared during his speech at the 2024 MURTEC Summit, when restaurants adjust prices dynamically, it sparks a unique reaction—and understanding why is crucial.
“Dynamic pricing has been used in the restaurant industry forever,” Shawn explained. “Anytime there are empty seats, we want to fill them. The goal is never to surge our guests but to provide value at all times of the day.”
Shawn’s used Dynamic Pricing with Cali BBQ’s third-party delivery platforms, Uber Eats and DoorDash. Using a tool called Juicer, his restaurant adjusted menu prices based on demand—raising or lowering prices to fill seats during slow times and maximize revenue during busy periods. Over two years, this strategy added $1,200 per month to a single location’s revenue.
Media Spotlight and the Power of Language
When Wendy’s announced its own exploration of Dynamic Pricing, the topic gained national attention. Shawn’s work with Juicer caught the eye of The Wall Street Journal, which featured Cali BBQ in an article about the trend.
However, the article referred to the practice as “Surge Pricing,” a term that immediately shifted the public’s perception. “The language we use is very important in business,” Shawn explained. “We were talking about dynamic pricing, incremental pricing—but when the article said ‘surge pricing,’ it changed how people viewed what we were doing.”
The reaction wasn’t limited to the article. Afterward, Shawn was invited to appear on News Nation to discuss dynamic pricing. While the interview went well, the comments on the video painted a different picture. “Hundreds of thousands of views, but I don’t think a single YouTube commenter supported what we were doing,” Shawn shared.
This reaction highlighted a critical point: the words used to describe a practice can either build trust or create fear. In this case, the term “surge pricing” evoked negative associations, making a thoughtful, customer-focused strategy seem exploitative.
Why Restaurants Face Pushback
Dynamic pricing feels routine when booking a flight or hotel room, but restaurants face resistance when implementing it. Shawn explained why: “It’s different because we’re setting the price in our own business. That feels personal to customers in a way other industries don’t experience.”
Shawn connected the issue to the logistics of menu pricing, such as transitioning from printed menus to digital pricing systems. These changes, while necessary for flexibility, can challenge both customers and staff.
“Pricing changes all the time,” Shawn said. “So why does it feel so complicated when it comes to setting prices for our own business?”
The Bigger Picture
Shawn’s talk wasn’t just about revenue; it was about long-term sustainability and maintaining customer trust. He emphasized that restaurants must approach dynamic pricing with transparency and care, ensuring it supports their values and customer relationships. “We are in a generational business, not a transactional business,” he said.
Dynamic pricing is part of the restaurant industry and has been for years. Shawn’s story serves as a reminder that innovation isn’t about reinventing the wheel—it’s about using existing practices thoughtfully to meet modern challenges. And just as important, it’s about choosing the right words to shape how those practices are understood.
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