Congestion Pricing at Restaurants

Are you ready to pay more to eat at popular times?

I look at as a discount, as I hardly ever eat when the thundering herd of diners is about.

Uh, no?

Isnt that the point of "half price wine nights" and etc? Ditto for happy hour?

To draw people in on the less crowded nights/times?

Its no different than matinee pricing at the movies.

Isnt that the point of "half price wine nights" and etc? Ditto for happy hour?

To draw people in on the less crowded nights/times?

Its no different than matinee pricing at the movies.

Exactly. I've been having similar thoughts about it. A big difference seems to be whether it's perceived as a discount during slow times vs. a surcharge during busy times. Perception is important.

Having a surcharge at busy times will insure your congestion problem is solved

Isnt that the point of "half price wine nights" and etc? Ditto for happy hour?

To draw people in on the less crowded nights/times?

Its no different than matinee pricing at the movies.

Exactly. I've been having similar thoughts about it. A big difference seems to be whether it's perceived as a discount during slow times vs. a surcharge during busy times. Perception is important.

Agreed, but the math is exactly the same, which means there is no difference. But, for people who struggle with math, make sure you sell it as a discount during off hours.

Having a surcharge at busy times will insure your congestion problem is solved

Exactly.

Having a surcharge at busy times will insure your congestion problem is solved

Actually, I think it makes it worse. Now the hours of max occupancy become less predictable and harder to plan for. Instead of having a busy time from 6-8, now you have it from 9-11. Try to move the surcharge hours to 9-11, and the peak shifts to 4-6. This is a no win situation for the restaurant.

Here's another take.

Having a surcharge at busy times will insure your congestion problem is solved

Actually, I think it makes it worse. Now the hours of max occupancy become less predictable and harder to plan for. Instead of having a busy time from 6-8, now you have it from 9-11. Try to move the surcharge hours to 9-11, and the peak shifts to 4-6. This is a no win situation for the restaurant.

Not really. Think of it this way, say you have 50 tables, but you have 100 people calling for reservations at 7.

50 will get them and the others will either eat at 5 or 9 or go somewhere else.

But, if you raise the price for the 7 seating until only 60 people are calling for them (you want to leave yourself a buffer), you still have the same 50 tables full at 7, and the others eat at 5 or 9 or go somewhere else.

In theory nothing has changed, except you make more money from the 7 seating and the 50 tables at 7 are chosen primarily by $ instead of by call order. In reality, you probably annoy some people and lose them as customers, but you have to weigh that against the extra revenue to see if its a good deal.