News Briefs

U.S. consumers have a negative perception of surge pricing. According to a HungerRush  survey, 64% of diners said they have a negative reaction to restaurants using surge and dynamic pricing. Additionally, 81% of diners surveyed said they would either stop going to a restaurant altogether or alter their dining hours to avoid prices surging during peak hours.

The point-of-sale (POS) software platform provider for quick-service and fast-casual restaurants, released the results from a national consumer dining survey on surge and dynamic pricing models for restaurants in the United States.

Restaurant owners face increasing profit margin challenges due to rising food sourcing costs, labor costs, and other economic factors. In California, the  $20 minimum wage is now in effect, impacting some restaurant owners’ bottom lines. In order to offset these rising operational costs, more restaurants are choosing to raise the cost of menu items depending on the time of day and demand (surge and dynamic pricing).

But this study suggests dynamic and surge pricing models may not be a good idea as a long-term strategy. As seen in recent weeks with national media coverage on the topic, dynamic or surge pricing models don't sit well with customers. 

This signals the need for restaurants to reevaluate pricing increases and instead explore other potential ways of increasing revenue.

Additional highlights of HungerRush’s National Restaurant Price Surging Survey:

• Are diners more understanding of locally owned restaurants that need to increase their prices?
  48% of diners said they are more understanding of small chains and local restaurants needing to raise prices. This reveals that owners of smaller restaurants have more room than larger chains to experiment with surge and dynamic pricing in order to help offset their high operational costs.
• How Do Diners Feel About Extra Fees?
  56% of consumers surveyed said they choose/will choose in the future to order from a restaurant with lower fees. 63% of diners are willing to pay a small fee to make up for increased operational costs. However, 21% of diners are only willing to pay a minimal fee of less than 3% of their total visit.

"Coping with the recent $20 minimum wage in California alongside high national inflation poses significant challenges for restaurant owners," said Bill Mitchell, Executive Chairman of HungerRush, and former President of Global Operations of Papa John’s International. "While raising prices may seem like a straightforward solution, it can negatively impact consumer loyalty. We've witnessed backlash against surge pricing models in the past, demonstrating the importance of preserving customer experience and loyalty. Our data highlights the critical role of customer satisfaction in a restaurant's profitability. Instead of solely relying on price hikes, we recommend leveraging technology and optimizing workforce planning to enhance operational efficiency and minimize expenses."

As restaurant operators and owners evaluate if surge and dynamic pricing models are right for them, they need to consider the sticker shock diners will experience. If they go this route, they need to be prepared to make up for the 22% of loyal customers they are driving away altogether.

Domino's Pizza Inc. introduces its new and improved loyalty program. 

Domino's Rewards offers loyalty members even more opportunities to earn and redeem points across its corporate and franchise store locations. Domino's enhanced rewards program allows customers to:

• Earn points for less
  • Loyalty members will now earn 10 points on every order of $5 or more
• Redeem points for even more menu items – and earn free Domino's after just two orders
  • Members can redeem a variety of points for more menu items:
    • 20 points: A free dipping cup, a 16-piece order of Parmesan Bread Bites or a 20 oz. drink
    • 40 points: An order of Bread Twists or Stuffed Cheesy Bread
    • 60 points: A medium, two-topping pizza; pasta; Oven-Baked Sandwich; or a 3-piece order of Chocolate Lava Crunch Cakes
• Earn more rewards
  • Loyalty perks are now even better, as members will have exclusive access to member-only deals, special discounts and opportunities to earn bonus points!

"We are thrilled to give the brand's loyal customers additional ways to earn free Domino's items more often," said Mark Messing, Domino's vice president of digital experience and loyalty. "At a time when most brands are scaling back their loyalty programs and making it more difficult to earn and redeem points, Domino's is doing the opposite. We want to make it easier to reward our customers and give them more options so they can get rewarded faster."

Marketing a LTO 

From now until Oct. 22, 2023, rewards members can take advantage of a limited time offer to redeem 20 points for a free order of Domino's new Pepperoni Stuffed Cheesy Bread, which is normally a 40-point redemption, in celebration of the product's recent launch. 

Marco's Pizza adds three marketing leaders to its team: Ben Halliwell as senior vice president of digital marketing, Tanisha Chea as vice president of brand marketing and Kathleen Kennedy as director of culinary innovation.

After being appointed in June 2023, Chief Marketing Officer Denise Lauer hired industry experts to help drive Marco's Pizza forward through innovative products and digital marketing advancements. As a challenger brand in the category, Lauer looks to drive continued sales growth and achieve new levels of customer engagement.

New technology rollouts

In addition to new menu items, Marco's commitment to new technology is also a top priority as the brand rolled out its Marco's Order Management System (MOMS), a proprietary 100% cloud-based technology platform, which gives Marco's the flexibility to customize and pivot to meet ever-changing consumer demands compared to an off-the-shelf technology stack.

"We made great strides last year in evolving our brand strategy, digital and product innovation pipeline," said Lauer. "Looking ahead, we have plans to launch a transformative brand strategy geared to wake up minds, hearts and tastebuds of consumers everywhere. This new team has been instrumental in bringing this vision to life and I cannot wait to show America what Marco's is all about."

SVP of Digital Marketing, Ben Halliwell, comes with an impressive 20-plus-year history of driving customer growth across e-commerce, performance marketing, loyalty, and digital platforms in the telecommunications and restaurant industries. Known for leading digital transformation initiatives and delivering brand affinity, he has a proven track record with several recognizable consumer brands, including Inspire Brands, HSNi, and Time Warner Cable.

In his new role, Halliwell is excited to learn from the Marco's team while sharing perspectives from his own experiences to build off the success that's built Marco's into the brand it is today. As Marco's further solidifies its positions as one of the fastest growing pizza brands, Halliwell is responsible for enhancing the e-commerce customer experience, optimizing digital demand, paid media and creating a marketing engine to convert and engage consumers from trial through loyalty.

Also playing a key role in Marco's next era is VP of Brand Marketing, Tanisha Chea, and her 15-year expertise in consumer marketing and integrated multi-channel launch campaigns for restaurant brands such as Krispy Kreme, Carrabba's Italian Grill and Taco Bell. In addition to her brand marketing responsibilities for Marco's, she works closely with newly appointed Chef Kennedy on overseeing new product development.

Finally, the newest addition to the Marco's team is Director of Culinary Innovation, Kathleen Kennedy, who boasts more than 40 years of experience. Having been inspired at a young age by family members who loved to cook, she went on to hold executive chef, product development, and consulting positions for global brands such as Kraft, Starbucks, Walmart and more. Kennedy noted she knew Marco's was a brand she could get behind because of the quality of its food. As director of culinary innovation, she looks forward to accelerating future innovations and developing, testing, and bringing new flavors to the Marco's menu.

With Marco's targeting continued growth following an impressive 2023, these additions to its leadership team help strengthen its strong development support system. In addition to a network of industry leaders, Marco's offers technology and tools to help identify territories for expansion, plus support in real estate, construction management, field operations, and information related to financing. FRANdata, a leading research and advisory firm that analyzes the franchise market, reports Marco's 2023 FUND Score of 895 is in the top 1% of all evaluated franchise systems and is among the top three scores for all QSR brands.

The brand's recent performance has earned multiple awards and recognition: Ranking in Newsweek's 2023 America's Best Customer Service in the pizza chains category, earning a spot on QSR's Top 50, appearing on Nation's Restaurant News' prestigious Top 500 ranking, and most recently claiming the No. 48 spot on Entrepreneur's 2024 Franchise 500® ranking.

Wyndham Hotels & Resorts (NYSE: WH) appointed Scott Strickland Chief Commercial Officer reporting to the Company's President and Chief Executive Officer, Geoff Ballotti. In this newly created leadership role, Strickland and his team will continue delivering the best value and experiences to Wyndham's owners and guests across its 25 brands through a united commercial organization.

"Over 7 years ago we recruited Scott from the private equity world where he led the information systems, eCommerce and business transformation teams at many great companies including D+M Holdings, Nissan, and Black & Decker. Under Scott's thoughtful and strategic guidance – including managing and deploying our $275M investment in best-in-class technology, digital, and franchisee opt-in services over the past five years – Wyndham has taken a leadership position and delivered multiple industry innovations for its owners," said Ballotti. "In this new role, Scott and his expanded team will continue to build our brands, drive direct revenue, and advance our value proposition through a newly combined, tech-forward commercial organization."

As Chief Commercial Officer, Strickland continues his responsibilities for enhancing and implementing Wyndham's technology and distribution strategy and will add oversight of global sales; revenue generation; marketing; communications and the award-winning loyalty program, Wyndham Rewards.  

"Combining this group of cross-functional leaders enables us to continue delivering owner-first tools, technology and marketing innovations," said Strickland. "These tools allow our franchisees to run their hotels more efficiently and profitably today and into the future. Integrating best-in-class technology, marketing, and sales teams into a single organization enhances the Wyndham Advantage."

With the creation of this new organization, Lisa Checchio, EVP and Chief Marketing Officer, will depart Wyndham Hotels & Resorts. During her tenure Lisa launched the Company's "by Wyndham" endorsement strategy, played a large role in the introduction of new hotel brands, and grew Wyndham Rewards – the award-winning loyalty program, which doubled in size in five years and has surpassed 100 million members. Lisa also led the creation of the industry's first-ever program dedicated to women's advancement in hotel ownership, Women Own the Room, which recently celebrated 15 open hotels, more than 50 signings, and a community of more than 550 members.  

"Lisa's leadership and expertise spanning marketing, consumer engagement, digital commerce, global sales, and more has helped us better fulfill Wyndham's mission to make hotel travel possible for all," said Ballotti. "We are grateful for her significant contributions to Wyndham and the broader hotel industry and will miss her many talents."

Wow Bao is once again breaking barriers with a full integration of its Hot Buns Club rewards program in the metaverse. US-based Roblox players who visit Wow Bao’s virtual experience, Dim Sum Palace, search for clues to unlock a free Bao-themed head UGC accessory, free Wow Bao product, and a chance to win Wow Bao for a year.

The digital and physical worlds collide in this groundbreaking campaign. After Roblox players join the Hot Buns Club to claim the limited-supply UGC items, they will receive a link via email for a free box of Wow Bao at their local grocer and be enrolled for a chance to win free bao for a year. Additionally, as a member of the Hot Buns Club they are eligible for exclusive rewards and benefits.

“Wow Bao has never shied away from being a trailblazer in technology and innovation,” said Geoff Alexander, president and CEO of Wow Bao. “By connecting gamers with our online ordering channels and rewards program, we are inviting new customers to experience our brand, rewarding our most frequent guests, and embarking on something that has never been done.”

How It Works

• Upon entering the steamy, exclusive experience, players will be greeted by a DJ spinning beats and a dancefloor that is pumping with NPC’s (non-playable characters). Signature Wow Bao paraphernalia is found throughout the club and guests can continue through mysterious doors and hallways into the Steam lounge, Momo’s restaurant, and hidden Hot Buns Club speakeasy.
• The free avatar item is hidden within the club, and players can uncover clues throughout as to how to claim the limited edition bao head accessory. Once in the experience, the DJ, head chef, and Wow Bao branded vending machines all hold hints on how to gain access to the free accessory and bao offer.
• Upon visiting hbc.wowbao.com, they will be prompted to sign up (or sign in) to the Hot Buns Club rewards program, connect their Roblox account. Once completed, users will head back to Roblox to claim the item.
• Players who have claimed their free UGC bao head accessory, will be entered to win free Wow Bao for a year and receive a free box of Wow Bao. As newly minted VIP members of the Hot Buns Club, they will earn exclusive benefits and a one-of-a-kind digital CollectaBao.
• Beyond the initial launch, Wow Bao has plans for continued updates to the experience.

To bring this campaign to life, Wow Bao has partnered with Flaunt and Paytronix to power the integration between the Hot Buns Club rewards program and Wow Bao’s virtual experience on Roblox. Wow Bao’s virtual experience, Dim Sum Palace, was built by award-winning LA-based production studio, Sawhorse Productions. Wow Bao has chosen DevourGo as its exclusive web3 ordering partner.

Wow Bao is a fast-casual Asian concept started in 2003 in Chicago and now in nearly 700 locations across the U.S. as well as more than 6,000 grocery stores. 

Orders.co, an all-in-one order management platform for restaurants, unveiled its latest innovation, the AI Chargeback Assistant. This AI-powered tool empowers restaurant owners to manage chargeback disputes and reclaim lost revenue, with minimal time and effort.

In today's digital landscape, where third-party delivery apps play a pivotal role in connecting restaurants with consumers, chargebacks have emerged as a significant challenge. These customer disputes can severely impact profitability, costing restaurants thousands of dollars annually in revenue loss and labor costs. Losses are compounded for enterprise restaurant operators managing multiple stores or franchise locations.

Clap Back on Chargebacks

Data from the Orders.co platform has revealed that over 70% of restaurants do not dispute chargebacks from third-party applications. The process is complex and tedious, and many restaurants have difficulty locating and properly disputing charges. What’s more, less than 20% of chargebacks that are disputed are ultimately refunded.

“Before engaging the Chargeback Assistant, we had a hard time staying on top of chargebacks – the process is so complex, it’s nearly impossible to handle every dispute manually,” said Marianna Manoukian, owner of multiple It’s Boba Time franchise locations. “Orders.co has taken the hassle off our hands, helping us maintain margin on these orders and reclaim hundreds of dollars every month.”

The AI Chargeback Assistant simplifies the dispute process by consolidating chargebacks into a single view, allowing restaurant owners to review and manage them seamlessly. Restaurants can also outsource the dispute management process to Orders.co as part of its end-to-end order management services.

With a 90% success rate, the feature has proven highly effective. In February 2024, the Chargeback Assistant recovered an average of $400 for SMB restaurants and $1,500 for enterprise restaurants. The tool also provides significant time savings, freeing restaurant operators from navigating the time-consuming dispute process and reducing resolution timelines to within 7 days.

"Our goal at Orders.co is to empower restaurant operators with tools that drive profitability and efficiency," says Arsen Stepanyan, chief executive officer of Orders.co. “Chargebacks are especially detrimental to operators with multiple locations or franchises – these restaurants are leaving a lot of money on the table, and with the Chargeback Assistant, we’re empowering owners to take back their profits.”

Integrated within Orders.co's end-to-end CRM system, the Chargeback Assistant consolidates third-party delivery orders and chargebacks, offering a seamless experience for restaurant owners. This feature is included within the Orders.co platform and is also available as a standalone service.

For more information about Orders.co and its Chargeback Dispute Management feature, please visit the Dispute Management page at www.orders.co.