ResQ Club, an app that lets restaurants sell surplus food instead of throwing it away, ran automatic dynamic pricing on its food portions through Priceff's service during July and August 2018. The result: food waste declined by 10-30% compared with fixed pricing models.
Rather than sticking to a single discounted price, the portions were priced continuously according to real demand, with Priceff's algorithm recalculating the optimal price on an ongoing basis.
The pilot's findings show how much a pricing strategy alone can shift business outcomes. "Everyone benefitted from better pricing; consumers got cheaper portions, restaurants got incomes instead of waste, and the environmental burden was decreased," Priceff noted of the results.
With demand-based pricing, consumers picked up meals at lower prices when demand was soft, restaurants turned inventory that would otherwise have been discarded into revenue, and less food ended up wasted overall.
