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Why restaurants are embracing Uber-style surge pricing

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A growing number of restaurants across the U.S have quietly adopted surge pricing strategies, reaping substantial profits from the controversial practice.

Among those implementing fluctuating menu prices during peak hours are barbecue chain Tony Roma’s and nearly 100 other small restaurants, following the lead of fast-food giant Wendy’s, which plans to introduce similar pricing models next year.

Sauce Pricing, a Los Angeles-based startup backed by industry heavyweights including founding members of Sweetgreen, Uber, and Airbnb, provides the software specialising in dynamic pricing.

According to the company, restaurants can increase item prices by 10% to 20% during busy periods, resulting in customers potentially paying an additional $1 to $2 for a $10 item.

Reports suggest that some establishments have seen their profit margins double as a result of surge pricing.

Annual profit

One example cited is Las Vegas-based casual eatery Rachel’s Kitchen, which reportedly earned an additional $64,000 in annual profit across its three stores.

The company’s CEO, Debbie Roxarzade, confirmed the use of Sauce Pricing’s software, stating that price fluctuations are capped at 15% and apply only to delivery orders from platforms like Doordash, UberEats, and Grubhub.

While Tony Roma’s did not respond to requests for comment, ice cream chain Carvel, listed as a Sauce Pricing customer, denied any affiliation with the startup when contacted by reporters.

The surge pricing model, reminiscent of the “Uber-style” dynamic pricing, allows businesses to adjust prices based on demand.

However, it has sparked criticism from some consumers, particularly in light of rising inflation and food prices. Wendy’s recent announcement of plans to pilot dynamic pricing drew ire from customers on social media platforms.

Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.

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Wall Street rallies as oil prices dip and bitcoin hits new high

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Wall Street started the week on a high note, extending last week’s rally as oil prices fell and bitcoin surged to a new record.

The Dow Jones jumped 1%, reaching over 44,000, with Tesla and big banks leading gains.

Crypto stocks soared as bitcoin hit an all-time high above $82,300, driven by optimism about lighter regulation.

Investors are also focused on upcoming inflation data, which could provide more clues about interest rates.

The dollar remained near a recent peak as Federal Reserve speakers, including Chair Jerome Powell, are set to weigh in later this week.

European markets followed suit, with the pan-European STOXX 600 rising over 1% on Monday.

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Bitcoin surges to record highs post-election

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Bitcoin soared to nearly $80,000, reaching unprecedented levels following Donald Trump’s decisive presidential victory earlier this week.

This marks a significant 65.4% increase from its January low of $38,505, underscoring the cryptocurrency’s remarkable growth this year.

The surge is largely attributed to President-elect Trump’s commitment to establishing the United States as “the crypto capital of the planet,” signaling a potential shift toward more favorable regulations for digital currencies.

Investors are optimistic that the incoming administration’s pro-crypto stance will further bolster the market, potentially leading to sustained growth in the sector.

Analysts suggest that this momentum could pave the way for Bitcoin to reach even higher valuations in the near future.

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Iron ore and oil prices drop as Beijing holds back

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China’s National People’s Congress announced a $1.3 trillion plan, but it’s focused on debt, not demand.

Mining giants BHP and Rio Tinto saw share prices fall as hopes for a strong stimulus faded.

Analysts say this “recycling debt plan” won’t deliver a boost for Australia’s resource exports.

Iron ore futures dropped 3%, and oil prices fell 2% after China’s announcement.

Some Australian economists see this as a missed opportunity for mining and the broader economy.

Beijing may wait for clarity on Trump’s trade policies before introducing more aggressive stimulus.

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