Pricing Strategies for Digital Menus: Dynamic Pricing

Static pricing is a relic of the paper era. Airlines do it. Hotels do it. Why shouldn't restaurants adjust their prices intelligently? A digital menu makes it possible.

What is Dynamic Pricing?

It doesn't mean changing the price of beer every 5 minutes like the stock market. That annoys customers.
It means adjusting prices strategically based on:

• Cost of goods (COGS): If prawns go up, update the price immediately. Don't lose money waiting ("until I reprint").
• Seasonality: Strawberries are cheaper in season. Adjust the price or margin.
• Demand: Happy Hour is a basic form of dynamic pricing.

Benefits of Digital Flexibility

1. Protection against Inflation

In times of high inflation, raw material costs fluctuate weekly. With a digital menu, you can pass these costs (or save them) instantly, maintaining your margin stable.

2. Testing (A/B Testing)

Unsure if the burger sells better at 12€ or 12.50€?

• Try 12.50€ for a week.
• Did sales drop? No -> You just increased your margin by 0.50€.
• Did sales drop? Yes -> Go back to 12€.

3. Smart Promotions

Instead of lowering prices, create "Bundles" or digital packs.

• "Burger + Drink + Potatoes" for a set price.
• You can activate/deactivate this pack only on slow Tuesdays.

How to Do It Without Angering the Customer

Transparency is key.

• Don't raise prices while the customer is seated. The price they see when scanning is the price they pay.
• Justify quality. If you raise the price compared to last month, ensure the description highlights the quality.
• Use Happy Hours. Lowering prices at specific times is always well received.

Conclusion

The rigidity of paper has made us lazy with pricing. Digital gives you control. Use it to protect your business and offer fairer prices adjusted to reality.