Dynamic Pricing vs Surge Pricing: Shawn Walchef Speech at MURTEC 2024
Dynamic pricing has long been part of the restaurant industry through practices like Happy Hours and Early Bird Specials. At the 2024 MURTEC Summit, Shawn Walchef, owner of Cali BBQ, shared how implementing dynamic pricing increased revenue by $1,200 monthly. However, when The Wall Street Journal labeled it “surge pricing,” public perception shifted, sparking criticism during his News Nation feature. Shawn emphasized the importance of language in shaping customer trust and explained why dynamic pricing feels more personal in restaurants compared to other industries. His insights highlight the balance between innovation, transparency, and maintaining generational business values.
Interview Takeaways:
- Dynamic Pricing vs Surge Pricing – Dynamic Pricing has been used in the Restaurant Industry forever, in all different types of ways from Happy Hours to Early Bird Specials. The goal isn’t to surge people, but to fill seats at all times of the day.
- A Battle of Words – The language used to convey an idea, concept, or theory is crucial to how it’s understood, especially when amplified by the media. When The Wall Street Journal labeled dynamic pricing as ‘surge pricing,’ it shifted everyone’s perception of its meaning.
- Dynamic Pricing in Our Everyday Lives – Pricing changes all the time, from hotel rooms and flights to the groceries we buy. So why does it feel so complicated when it comes to setting prices for our own business?”
Episode Links:
- Shawn Walchef LinkedIn: https://www.linkedin.com/in/shawnpwalchef/
- Cali BBQ: https://calibbq.media/
- Cali BBQ Media: https://betheshow.media/
- Murtec Summit: https://www.murtecsummit.com/2024
- Wall Street Journal Cali BBQ Article: https://www.wsj.com/business/hospitality/surge-pricing-is-coming-to-more-menus-near-you-66a245f3
- Juicer Pricing Online: https://juicerpricing.com/
- Stub Hub Online: https://www.stubhub.com/
- Game Time Online: https://gametime.co/
- Wendy’s: https://www.wendys.com/
- News Nation Interview: https://www.youtube.com/watch?v=VFKVHpyxk18
- Uber Eats: https://www.ubereats.com/
- Door Dash: https://www.doordash.com/
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