Restaurant tech startup Juicer is discontinuing its dynamic pricing platform.
CEO and Founder Ashwin Kamlani told Food On Demand that the company will pivot toward a broader revenue management solution for the restaurant industry.
The company’s dynamic pricing platform used AI to adjust delivery item prices based on consumer buying trends. The tech could raise or lower prices on third-party delivery apps like DoorDash or Uber depending on demand at specific times.
However, dynamic pricing faced its share of backlash earlier this year—when Wendy’s announced plans to use it in digital boards in drive-thrus. Many consumers thought this meant surge pricing. The controversy led Wendy’s to clarify that it planned to offer discounts during dayparts rather than just raising prices.
Ashwin Kamlani, Juicer CEO and co-founder
Although the debacle led to an increased interest in Juicer and dynamic pricing, according to Kamlani, it also made restaurants weary.
“There was some nervousness around what would happen if consumers found out that they were implementing a dynamic pricing strategy,” he said. “We had several conversations where restaurants said it’s just not for us, or we’re too afraid of what the consumer would say. We don’t want to be the next Wendy’s.”
Kamlani remains confident dynamic pricing strategies work. In a former interview with Food On Demand, Shawn Walchef, founder and operator of Cali BBQ, said Juicer’s pricing strategy helped boost its monthly delivery revenue.
Yet Juicer found that focusing on dynamic pricing for delivery made it less appealing for operators with broader needs. Coupled with the financial pressure on restaurants right now, the company decided to end dynamic pricing for its clients by the end of August.
Juicer Compete
Now the startup is going all-in on a different aspect of its business, “Juicer Compete”, which Kamlani said has become more attractive to operators. This tool helps chains track competitor pricing and promotions at a hyper-local level. It simplifies the monitoring of competitor prices and deals, which usually requires manual tracking.
“The restaurant industry headlines are littered with bankruptcies and missed earnings,” said Kamlani. “The desperation of restaurants to steal market share has created a value war.” Adding that he believes ‘Compete’ can be a weapon for restaurant brands and their franchisees to protect themselves.
“Now what we’re doing is helping restaurants see where they might be overpriced and helping them understand how much value they should be putting in the market,” he said. “How their prices and deals compare to all of their competition within a two-mile radius of each store.”
The road ahead
To speak to more restaurants about pricing strategies, Kamlani is taking off on a four-month road trip across the U.S., traveling in an eye-catching pink RV decorated with a unicorn.
“I’ll be documenting my journey and findings on LinkedIn and other social media channels as I learn what kind of data restaurants need to enhance revenue,” he said. “I’m also bringing my youngest daughter, Taj, with me to give her a first-hand look at what it takes to build a business.”
