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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. She also said the price fluctuations only apply to the restaurant’s delivery orders from Doordash, UberEats and Grubhub.

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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Politics

South Korea stops short of allowing crypto in updated donation laws

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South Korea stops short of allowing crypto in updated donation laws

Department store gift vouchers, stocks, and loyalty points from tech giants can be donated to charities, but not crypto.

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Sports

Cassidy: Nine Knights had surgeries during season

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Cassidy: Nine Knights had surgeries during season

Seeing their bid for consecutive Stanley Cups end in the first round wasn’t the only pain the Vegas Golden Knights felt this postseason.

Nine Vegas players had surgeries this season, coach Bruce Cassidy shared Sunday after his team’s 2-1 loss to the Dallas Stars in Game 7 of the Western Conference quarterfinals.

“Nine guys. Your roster is only 23, so nine players,” Cassidy said. “Two of them internal surgeries. You never know how those are going to play out. Some other ones were a little more defined, but I give our guys a lot of credit.”

Even though the Golden Knights had 20 players returning from their 2022-23 title team, they still faced questions heading into the playoffs. Most of those queries were about what a fully healthy Golden Knights team would look like once the postseason started. That also included questions about how trade deadline acquisitions — such as forwards Tomas Hertl and Anthony Mantha, and defenseman Noah Hanifin — would fit on an established team.

The Golden Knights opened the series by winning both games at the American Airlines Center in Dallas to take a 2-0 series lead before the Stars won three straight. Vegas rallied with a 2-0 win in Game 6 at T-Mobile Arena in Las Vegas to force a Game 7.

“Up 2-0, it would’ve been nice to find a way to win two of those three games,” Golden Knights defenseman Alex Pietrangelo said. “They made some adjustments that I don’t think we adjusted well enough right way. That’s on us as players to find a way when we’re up 2-0 to get the job done.”

NHL Injury Viz, a site that tracks games lost to injuries, has data revealing that the Golden Knights were among the teams to lose the most player games to injury during the 2023-24 season.

In total, the Golden Knights had 10 players who missed more than 10 games because of various injuries. Some players, such as defenseman Shea Theodore (35 games) and left winger Mark Stone (26), had extended absences. Others, such as goaltender Adin Hill, missed more than 10 games because of separate injuries. Hill missed seven games because of a lower-body injury and another 15 games because of an undisclosed injury, according to NHL Injury Viz’s data.

Cassidy said many of those injuries happened when the Golden Knights were trying to find cohesion with their forward lines and defense pairings.

Hertl was recovering from a knee procedure when he was acquired via trade from the San Jose Sharks on March 8 and played just six games with his new club before the playoffs. In total, Hertl missed 28 regular-season games between the Golden Knights and Sharks.

“Some of those surgeries are obviously correcting a problem, but it takes us a while to get back up to speed,” Cassidy said. “That would be the unfortunate part. They came and did get healthy enough for the playoffs. That was the positive, and now you are trying to get a team up to speed in a hurry.

“I didn’t do a good enough job of that, but that’s a lot of surgeries in one year for guys to overcome, and it defines your game.”

Stone, who underwent multiple back surgeries last season, was recovering from a lacerated spleen this season before returning ahead of Game 1. The Golden Knights captain said he was proud of how the team performed in the face of what was a challenging set of circumstances.

“We had a hard time staying healthy,” Stone said. “Still found a way to get into the playoffs, and we did give ourselves a chance to win the series with a one-goal loss in Game 7 against the top team in the conference. It’s disappointing. That’s really the only way to say it. It’s disappointing.”

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UK

Rishi Sunak admits Tories may not win general election and claims UK heading for hung parliament

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Rishi Sunak admits Tories may not win general election and claims UK heading for hung parliament

Rishi Sunak has admitted the Tories may not win the general election after grim defeats in the local polls.

The prime minister suggested the UK was on course for a hung parliament and claimed voters would not want to see Labour leader Sir Keir Starmer “propped up in Downing Street” by the SNP or smaller parties.

In an interview with The Times, Mr Sunak pointed to Sky News analysis of the local election results by election expert Professor Michael Thrasher which suggested Labour would be the largest party in a hung parliament.

Politics live: PM told to ‘wake up and smell the coffee’ after elections

“These results suggest we are heading for a hung parliament with Labour as the largest party,” Mr Sunak told the paper.

“Keir Starmer propped up in Downing Street by the SNP, Liberal Democrats and the Greens would be a disaster for Britain.

“The country doesn’t need more political horse-trading, but action. We are the only party that has a plan to deliver on the priorities of the people.”

Meanwhile, Tory rebels have warned the prime minister to change his political course after the weekend’s local election results.

Read more:
The local election winners and losers
Charts tell story of Conservative collapse

Analysis: Labour’s future success is less clear-cut

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PM on ‘disappointing’ election results

Sunak urged to take party towards right

Former home secretary Suella Braverman urged him to mould the party towards the right in order to win back voters.

But she told the BBC a change of leadership was not a “feasible prospect,” adding: “There is no superman or superwoman out there who can do it.”

Ms Braverman urged the prime minister to adopt several measures to win back voters, including further tax cuts and a cap on legal migration.

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Rishi Sunak ‘up for the fight’ in general election

Tories ‘up for the fight,’ minister insists

But Transport Secretary Mark Harper insisted Mr Sunak and the Tories are “up for the fight” of a general election despite their terrible results in the local contests.

Talking to Sky News’ Sunday Morning With Trevor Phillips, the minister said: “I think the key thing that people need to do now is get behind the prime minister, focus on the things the government is focused on delivering – the British people’s priorities around the economy, dealing with migration – and get out there and take that fight to the country ahead of the general election.”

Labour won 1,158 seats in the 107 councils in England that held elections on 2 May, an increase of more than 232.

The Liberal Democrats won 552 seats, up nearly 100, while the Tories came in third place on 515 seats, down nearly 400.

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