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Dozens of restaurants nationwide have quietly begun using surge pricing and have reaped tens of thousands of dollars in profits from the controversial practice, The Post has learned.

Barbecue chain Tony Romas and nearly 100 other small restaurants have already turned to fluctuating menu prices during peak times — similar to the rollout planned by fast-food giant Wendy’s next year — according to one company that sells the software specializing in dynamic pricing.

Los Angeles-based Sauce Pricing — a startup backed by founding members of Sweetgreen, Uber, Airbnb and several private equity firms — said restaurants have the opportunity to increase item prices by 10% to 20% during the lunch rush so customers might pay an extra $1 to $2 for a $10 item, according to a blog post on its website.

In some cases, weve actually seen some restaurants go from having a 10% profit margin to a 20% profit margin, the blog post said.

One of its customers, Las Vegas-based casual eatery Rachels Kitchen, earned $64,000 in additional annual profit across three stores, according to Sauce Pricing’s website.

The Rachel’s Kitchen CEO Debbie Roxarzade confirmed the company uses Sauce Pricing’s software.

The prices “don’t increase or decrease [by] more than 15%, that’s our cap for all menu items,” she told The Post on Tuesday.

Orlando, Fla.-based Tony Roma’s, popular for its ribs, did not return calls for comment.

Ice cream favorite Carvel was also listed as a Sauce Pricing customer on its website, but the Fudgie the Whale maker denied any ties to the startup when contacted by The Post.

Sauce Pricing founder Colin Webb did not immediately return calls and emails for comment.

Uber-style surge pricing allows a business to hike up the cost of an item when a restaurant is slammed. Theoretically, restaurants can also lower prices during slower times, though it’s not clear whether Wendy’s will let favorites like Dave’s Single fall below its base price.

The announcement by Wendys chief executive Krik Tanner this month that the burger chain will invest in a “dynamic pricing” pilot sparked anger and anxiety from inflation-battered customers fed-up with ever increasing food prices.

Price gouging. The corporate food company go to, posted one angry user on X.

Most of the price adjustments, however, are on online orders and are meant to help restaurants cope with rising labor costs and delivery fees from Doordash, Grubhub and UberEats, Sauce Pricing’s website notes.

Delivery accounts for a growing portion of restaurant revenues and costs, particularly since the pandemic, experts told The Post.

One industry veteran pointed out that restaurants have long lowered and raised their prices to lure customers during slow and busy times.

Happy Hour is dynamic pricing and so is a burger that costs more at dinner than at lunch or an offer of free delivery during a thunderstorm, said Chris Webb, chief executive and founder of ChowNow, an online food ordering company.

But people like reliability and having prices change because the demand is higher is not hospitality. 

Other experts said its just a matter of time before the restaurant industry catches up with industries like airlines and hotels that have mastered surge pricing.

Sometimes you check a flight and the price change within a week is dramatic, but it doesnt stop people from flying, said restaurant analyst Mark Kalinowski. 

Ultimately, consumers will accept it if a large number of restaurant chains do it, too.

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Who will be the UK’s next ambassador to the United States?

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Who will be the UK's next ambassador to the United States?

👉Listen to Politics at Sam and Anne’s on your podcast app👈

It might be the last full day of business before parliament wraps up for Christmas but there is plenty on the menu for Sam and Anne to tackle.

The duo look at:

  • The man to beat in the race to become the next UK ambassador to the United States

  • Britain looking set to rejoin the Erasmus student exchange programme but how much will it cost the taxpayer?

  • Gossip and fallout from the Angela Rayner polling about how she’s perceived with Labour voters

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UK

Teenage boy charged over murder of nine-year-old Aria Thorpe in Weston-super-Mare

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Teenage boy charged over murder of nine-year-old Aria Thorpe in Weston-super-Mare

A nine-year-old girl found dead in Weston-super-Mare has been named on the day police revealed a teenager had been charged with her murder.

Emergency services were called to Lime Close in the Somerset town at 6.09pm on Monday but Aria Thorpe was pronounced dead at the scene.

Police said a 15-year-old boy had been charged with her murder and that a preliminary post-mortem found she died from a single stab wound.

The teenage boy – who can’t be named due to his age – will appear at Bristol Magistrates’ Court later today.

A police cordon remains in place as forensics officers continue their work.

Flowers and tributes have been left at the scene. Pic: PA
Image:
Flowers and tributes have been left at the scene. Pic: PA

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Superintendent Jen Appleford, from Avon and Somerset Police, said the community was in shock and Aria’s family were being supported by police.

“It is impossible to adequately describe how traumatic the past 36 hours have been for them and we’d like to reiterate in the strongest possible terms their request for privacy,” she said.

Supt Appleford said police were working with local schools and other agencies to make sure support is available.

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UK

Duke of Marlborough charged with strangulation offences

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Duke of Marlborough charged with strangulation offences

The Duke of Marlborough, formerly known as Jamie Blandford, has been charged with intentional strangulation.

Charles James Spencer-Churchill, a relative of Sir Winston Churchill and Diana, Princess of Wales, is accused of three offences between November 2022 and May 2024, Thames Valley Police said.

The 70-year-old has been summonsed to appear at Oxford Magistrates’ Court on Thursday, following his arrest in May last year.

The three charges of non-fatal intentional strangulation are alleged to have taken place in Woodstock, Oxfordshire, against the same person.

Spencer-Churchill, known to his family as Jamie, is the 12th Duke of Marlborough and a member of one of Britain’s most aristocratic families.

He is well known to have battled with drug addiction in the past.

Read more from Sky News:
UK to rejoin Erasmus in 2027
Inflation falls by more than expected

Spencer-Churchill inherited his dukedom in 2014, following the death of his father, the 11th Duke of Marlborough.

Prior to this, the twice-married Spencer-Churchill was the Marquess of Blandford, and also known as Jamie Blandford.

His ancestral family home is Sir Winston’s birthplace, the 300-year-old Blenheim Palace in Woodstock.

But the duke does not own the 18th century baroque palace – and has no role in the running of the residence and vast estate.

The palace is a Unesco World Heritage Site and a popular visitor attraction with parklands designed by “Capability” Brown.

In 1994, the late duke brought legal action to ensure his son and heir would not be able to take control of the family seat.

Blenheim is owned and managed by the Blenheim Palace Heritage Foundation.

A spokesperson for the foundation said: “Blenheim Palace Heritage Foundation is aware legal proceedings have been brought against the Duke of Marlborough.

“The foundation is unable to comment on the charges, which relate to the duke’s personal conduct and private life, and which are subject to live, criminal proceedings.

“The foundation is not owned or managed by the Duke of Marlborough, but by independent entities run by boards of trustees.”

The King hosted a reception at Blenheim Palace for European leaders in July last year, and the Queen, then the Duchess of Cornwall, joined Spencer-Churchill for the reveal of a bust of Sir Winston in the Blenheim grounds in 2015.

The palace was also the scene of the theft of a £4.75m golden toilet in 2019 after thieves smashed their way into the palace during a heist.

The duke’s representatives have been approached for comment.

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