Can Dynamic Pricing Make Food Delivery More Profitable And Accessible?
September 06, 2023
While this week's WSJ reported the trials and tribulations of DoorDash’s confusing messaging urging them to maintain price parity with their in-store menus, a key piece has been omitted from the discussion– dynamic pricing. In recent years, startups like Sauce and JUICER have sprung up to help restaurants adopt demand-based pricing that seeks to improve the bottom line of their digital off-premise P&Ls. Last month, Sauce launched a self-serve product that allows restaurants to connect their delivery marketplace and aggregator accounts to start experimenting with its tool, which it claims can increase their delivery profit margins by 5-10%. Beyond improving delivery profitability, dynamic pricing has the potential to reduce food waste, throttle orders during peak demand times, and further optimize digital menu prices of in-venue kiosks and drive-thrus.