The Pricing Opportunity

Most restaurants use static pricing for delivery. Same price at 2 PM on Tuesday as 7 PM on Friday night.

But demand isn't static. Neither should your prices be.

Dynamic pricing—adjusting prices based on demand, time, and conditions—can increase delivery revenue by 15-25% without losing customers.

Here's how to do it right.

Why Dynamic Pricing Works

The Psychology

Customers understand surge pricing. They see it with Uber, airlines, hotels. They accept it when:

The value is clear

The increase is reasonable (10-20%)

It's applied consistently

The Economics

Peak times have:

Higher demand (more orders)

Limited capacity (kitchen can only handle so much)

Higher costs (overtime, rush prep)

Charging more during peak times is fair and profitable.

When to Use Dynamic Pricing

Peak Hours (Increase 10-15%)

Friday/Saturday nights (6-9 PM)

Sunday brunch (10 AM-2 PM)

Major holidays

Local events (sports games, concerts)

Off-Peak Hours (Decrease 5-10%)

Monday-Thursday afternoons (2-5 PM)

Late night (after 9 PM)

Early morning (before 10 AM)

Special Conditions (Increase 15-25%)

Bad weather (rain, snow)

High-demand events (Super Bowl, New Year's Eve)

Kitchen capacity constraints

Implementation Strategy

Step 1: Analyze Your Data

Look at your order patterns:

When are you busiest?

When do orders slow down?

What's your kitchen capacity?

Use this data to identify pricing opportunities.

Step 2: Set Base Prices

Your base prices should:

Cover all costs at average demand

Be competitive with similar restaurants

Leave room for peak increases

Step 3: Create Pricing Rules

Simple rules work best:

Peak hours: +12% on all items

Off-peak: -8% on select items

Weather events: +18% on all items

Step 4: Communicate Clearly

On your menu, add:

"Prices may vary during peak hours to ensure quality service."

Most customers won't notice, but transparency builds trust.

Platform-Specific Considerations

DoorDash

Supports dynamic pricing through menu management

Update prices in real-time through merchant portal

Customers see updated prices immediately

UberEats

Similar to DoorDash

Can set different prices for different times

Use "promotions" feature for temporary increases

Grubhub

More manual process

Update prices through merchant dashboard

Consider using their promotional tools

Common Mistakes to Avoid

1. Too Aggressive

Increasing prices 30%+ will drive customers away. Keep increases to 10-20%.

2. Inconsistent Application

If you raise prices Friday night, do it every Friday night. Consistency builds acceptance.

3. Not Testing

Start with small increases (5-10%) and measure impact. Adjust based on data.

4. Ignoring Competition

If competitors don't use dynamic pricing, you might lose customers. Monitor their pricing.

5. Poor Communication

Don't surprise customers. If you're raising prices for an event, mention it in your listing.

Measuring Success

Track these metrics:

Revenue per order: Should increase 10-20%

Order volume: Should stay stable or increase slightly

Customer complaints: Should remain low

Profit margins: Should improve 15-25%

Real Results

A pizza restaurant we work with implemented dynamic pricing:

12% price increase during peak hours (Fri-Sun 6-9 PM)

8% decrease during off-peak (Mon-Thu 2-5 PM)

Result: 18% increase in delivery revenue

Order volume: Stable

Customer satisfaction: No change

Getting Started

Week 1: Analyze your order data to identify peak/off-peak times

Week 2: Set base prices and create pricing rules

Week 3: Test with small increases (5-8%) during one peak period

Week 4: Measure results and adjust

Month 2: Expand to all peak periods

Dynamic pricing isn't about gouging customers—it's about matching price to value and demand.

Start small, measure everything, and scale what works.

Dynamic Pricing for Delivery: How to Maximize Revenue Without Losing Customers