Connect with us

Published

on

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.

Continue Reading

Sports

Crow-Armstrong stays hot vs. hometown Dodgers

Published

on

By

Crow-Armstrong stays hot vs. hometown Dodgers

CHICAGO — Most players are happy to be done facing the Los Angeles Dodgers, but Chicago Cubs center fielder Pete Crow-Armstrong might not be one of them.

The Los Angeles native has torched his childhood team this season, including Wednesday night at Wrigley Field when he went 3-for-4 with a home run, two stolen bases and a career-high four RBIs, helping the Cubs to a 7-6 win. It came one night after Chicago beat L.A. 11-10, with Crow-Armstrong contributing another home run.

He was asked Wednesday whether his production has special meaning coming against the team he used to root for.

“Absolutely,” he said. “I mean, they are regarded as the best, and I think we’ve enjoyed being able to show that we’re right there with them, and yeah, it’s always a little extra special for me getting to do it against the team I grew up going to see.”

Crow-Armstrong erased a 2-0 Cubs deficit with an opposite-field, three-run homer in the fourth inning, then added a run-scoring single an inning later, which turned out to be the final run of the night for the Cubs.

Overall, he had four home runs and nine RBIs in the seven-game season series against the Dodgers, which the Cubs won 4-3 after losing the first two games in Japan in mid-March. But that was before the Cubs’ offense took off. They’re averaging an MLB-high 6.3 runs per game.

Crow-Armstrong’s season took off as well, starting over a week ago when the teams met in Los Angeles. In the 10 games since, the 23-year-old is hitting .400 with five home runs.

“He needs to send me a bottle of wine or some golf balls with all the success he’s had,” Dodgers manager Dave Roberts quipped before Wednesday’s game.

Roberts and Crow-Armstrong exchanged pleasantries before the first game of the series, as the second-year player is friends with Roberts’ son, Cole. The two played against each other growing up.

“I got a couple different connections to Doc,” Crow-Armstrong said. “He’s so great.”

That’s the same word Crow-Armstrong’s teammates are using about him as he continues to impress both at the plate and in the field. According to ESPN Research, he’s the fastest player in Cubs history to reach five home runs and 10 stolen bases, doing it in 26 games.

Plus, his pitchers love seeing him patrol center field.

“Defensively, I got to say he’s probably the best,” Wednesday’s starter, Matthew Boyd, said. “And what he’s doing at the plate is no surprise.”

Crow-Armstrong showed signs of breaking out late last year but then struggled early this season before locking in during the Cubs’ most recent road trip. He said he got “on-time” with his swing while learning how to deal with failure better. He was asked how satisfied he is with his game right now.

“If it comes out in a win, it’s very satisfactory,” he said. “It makes me feel very content. I love being able to impact it in any way I can.”

So does his manager, who called Wednesday a “wonderful game” for Crow-Armstrong.

“He made his presence felt in a big way for sure,” Craig Counsell said.

Crow-Armstrong is quickly becoming a fan favorite, as the Cubs faithful are taking to his aggressive style of play. He was asked what it’s like to hear his name chanted when he comes to the plate after producing in previous at-bats.

“I’ve tried to tune that out,” he said with a laugh. “I was actually thinking about it yesterday and I was like, I got to be 0-for-20 when they’ve chanted my name. But they continue to chant and they get behind every one of us and it’s the coolest thing.”

Continue Reading

Sports

Dodgers’ Snell to pause throwing after discomfort

Published

on

By

Dodgers' Snell to pause throwing after discomfort

CHICAGO — Los Angeles Dodgers starter Blake Snell will back off his throwing program as he continues to recover from left shoulder inflammation, according to manager Dave Roberts.

“As he was playing catch, he just didn’t feel great,” Roberts said Wednesday afternoon before the Dodgers played the Chicago Cubs. “Right now, we’re going to slow play the throwing. Will probably get it looked at again when we get back home.”

Snell, 32, has been on the injured list since early April after making just two starts for the Dodgers. He signed a five-year, $182 million contract this past offseason.

Snell, who was set to throw a bullpen session Wednesday, felt discomfort in the shoulder while playing catch Tuesday. Roberts was asked how concerning the latest setback was.

“I wouldn’t say concerning because part of the messaging from us to Blake is, it’s about later on in the season and if there’s any type of discomfort, let’s not try to fight through it,” Roberts responded.

Snell is one of several Dodgers pitchers on the mend, including left-hander Clayton Kershaw, who pitched three innings in a minor league start Tuesday, his second rehab outing this spring.

“Velocity was good,” Roberts said. “Got into the fourth inning. He’ll make a start next week. Really positive stuff.”

The Dodgers also received positive news about right-hander Tyler Glasnow after he left his last start with leg cramps. His latest bullpen session went well, according to Roberts.

Meanwhile, Shohei Ohtani is throwing again after missing time on the paternity list. He’ll have another bullpen session Saturday as he recovers from elbow surgery, though the team still doesn’t have a timetable for his return to major league action.

The team was also without catcher Will Smith on Wednesday after he injured his wrist on a play at the plate in Tuesday’s loss to the Cubs.

“As he made the tag, his [left] wrist turned in and so there’s some residual soreness,” Roberts said.

Smith could get imaging done when the team returns to Los Angeles, but Roberts wasn’t overly concerned about the injury.

Continue Reading

Sports

Rangers’ Seager goes on IL with hamstring strain

Published

on

By

Rangers' Seager goes on IL with hamstring strain

WEST SACRAMENTO, Calif. — The Texas Rangers placed shortstop Corey Seager on the 10-day injured list Wednesday because of a strained right hamstring.

Seager, 30, pulled up while running to first base in the sixth inning Tuesday at the Athletics and left the game. He started 21 of Texas’ first 23 games this season and is hitting .286 with four home runs and six RBIs. Seager has a team-high 17 hits since April 8.

The Rangers also called up infielder Nick Ahmed and designated left-handed pitcher Walter Pennington for assignment. Ahmed, 35, is seeking to appear in a major league game for the 12th consecutive season. He has played for Arizona (2014-23), San Francisco (2024), the Los Angeles Dodgers (2024) and San Diego (2024).

Continue Reading

Trending