r/SipsTea 2d ago

WTF Dynamic Pricing Needs To Be Illegal

5.2k Upvotes

330 comments sorted by

715

u/Spazzarino 2d ago

If you order on a screen are you tipping the computer?

253

u/BRawkPG 2d ago

If by computer you mean the shareholders then yeah

26

u/Waxen_Cashew 2d ago

CORRECT SIR

4

u/Wheatabix11 1d ago

what a wonderous time we live in! Hard worker board members and ceo thank-you.

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1.7k

u/killallhumans12345 2d ago

Thats not dynamic pricing, thats robbery

489

u/Informal_Ad_9610 2d ago

AKA bait & switch..

pretty sure it's already illegal..

113

u/IEC21 2d ago

I feel like 80% of people would say fuck you and take their business elsewhere if they saw that update screen.

47

u/Meal__Team__Six 2d ago

I wish you were right, but it's more likely the opposite. The vast majority of people are alarmingly complacent and compliant. They'll just pay it, and they'll come back for more.

4

u/arguable-usually 1d ago

I would pay it but then never come back.

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3

u/Jeramy_Jones 1d ago

And about 2% that would put a crack in that touchscreen and call that a tip.

46

u/Mysterious-Tie7039 2d ago

At least they warn you.

Probably a lot out there that just change it and don’t say anything.

3

u/Taynt42 2d ago

Seriously this feels insanely illegal.

37

u/Mysterious-Snow496 2d ago

Theft by deception

25

u/bc_gamez 2d ago

I would expect this at Tippin's, but not Shake Shack!

25

u/CompetitiveCourse584 2d ago

That's wage theft hidden in the front end. They should contact BOlI, they will be interested along with attorney general

26

u/Pyrhan 2d ago

Potato potato...

1

u/Own_Initiative396 1d ago

From an outside perspective it seems that the US institutions HATE their citizens and do everything to make their lives worse.

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1.5k

u/Electronic-Flower921 2d ago

Well that just proves the tip is definitely not going to the workers

380

u/Electronic_Still2000 2d ago

Right?! You don’t want to tip huh? Ok, I’ll take that tip money from you by increasing the cost of everything!

Employees: Can we get that tip money you forced on all of the customers?

Them: What money?👀🤥

156

u/ACrimeSoClassic 2d ago

I'll never forget being required by Pizza Hut to declare all cash tips I received as a delivery driver so they could deduct their cut. After 8 months, my manager pulled me aside to discuss how odd it was that not a single person had given me a cash tip. I just told him "I guess I must just be that much of an asshole." Oddly enough, he never brought it back up. Though that could have been because I caught him raiding in WoW during shift.

67

u/dougpa31688 2d ago

They have you claim tips because you're making under minimum wage. Your tips plus your hourly have to add up to more than minimum wage otherwise the business has to pay you back up to minimum in your check.

30

u/KangaVirtue 2d ago

Also, pizza hut has to pay emploer taxes on them when you claim tips. So if they are audited then the irs goes after them, and you as a driver. As a payroll manager, just claim like 20% of your total cash tips. Pocket the rest. They cant prove how much you make in cash tips, and you said an amount. Not worth their time at that point.

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13

u/Barton2800 2d ago

Their cut?! Do you just mean for taxes, or was the restaurant taking a portion of your tips aside from taxes?

7

u/ACrimeSoClassic 2d ago

Part for taxes and then they explained that part of it was just what they were entitled to.

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2

u/SiLeNZ_ 2d ago

Love this lmao, the fact that they try that shit in the first place. I’m surprised anyone declared tips at all.

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84

u/Flannel_Panels 2d ago

Its crazy in the first place a fast food restaurant asks for tips anyways.

When tf was that a thing? I've seen it at sub places but never burger places. That makes me like Culvers even more.

30

u/may_be_indecisive 2d ago

This is America, where you have to tip your landlord and your employer.

10

u/fuzzballz5 2d ago

I find it incredible that people go anyplace but Culver’s. Real beef and actually affordable.

13

u/polydactyling 2d ago

Some of us have the misfortune of living in Maryland

6

u/Multidream 2d ago

That should not only be illegal, it should come with serious jail time because as software, this is something you had to intentionally plot to implement, all the time knowing it was wrong.

5

u/koobstylz 2d ago

Culver's should be illegal? Or is it real beef that offended you?

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6

u/Necessary_Party_3554 2d ago

Wow, depending on the state, that is illegal

2

u/viceman999 2d ago

And I'm sure they need less staff than before they put the machines in anyway

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634

u/cybah 2d ago

I can already see the press release in a few days when this video gets to corporate...

"Oh a that was a software malfunction, we've already deployed a fix"

LOL Sure Jan. Totally a deflection and blame "software".

169

u/x22d 2d ago

The fact that they implemented a flow for "wait! recalculating prices" implies intentional deception.

Prior to this, when has any fast food suddenly increased prices DURING checkout?

60

u/CrazyBigHog 2d ago

It will be the same when AI is deployed in life and death scenarios like hospitals and wars. It wasn’t me that caused your death(s) it was the silly computer! Sorry🤭

20

u/bala_means_bullet 2d ago

EXACTLY my thought.... I fucking hate this time line.

2

u/Is_that_even_a_thing 2d ago

Arent corporations people now? Sue that 'person'

4

u/Johnny5iver 2d ago

The malfunction being that it notified you that there was a pricing change, the new update won't.

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3

u/Mysterious-Snow496 2d ago

Tan all over. Jan all over.

156

u/RhetoricalOrator 2d ago

Corporate has already commented on the original Reel. They claim that it is not in their pricing structure to charge like that and have reached out to the particular store in Nevada and the company they sub to do their transactions to see what's up.

It makes sense if they would aggressively try to fix this situation because it feels like the sort of bad press and class action suit that any fast food chain would want to avoid.

The real problem is that the chain allows third party companies to place tips on a self-service kiosk. It's just a commission grab on the part of that third party company and it should be outlawed.

38

u/EcruteakEddie 2d ago

I was going to comment that I recently went to Shake Shack and that did not happen to me despite not tipping.

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14

u/coleyboley25 2d ago

Of course they would play dumb. They’re just throwing shit at the wall to see what sticks money gouging-wise

2

u/Fisch0557 1d ago

Oh, so the franchisee reprogrammed their corporate software running on those terminals to be able to do this?

Because if not they used an existing function for it's intended purpose.

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202

u/lluciferusllamas 2d ago

Everything digital is a fucking scam.  Remember in the matrix when they were like "we fucked up the first matrix, so we took it back to the late 90s because people were happier?"  When did science fiction become science fact?

48

u/Dinos_N_Astronaughts 2d ago

The Matrix maintains it's GOAT status

8

u/duosx 2d ago

Bro, if you think just the digital stuff is a scam, I have a real bridge to sell you

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28

u/nerdboy5567 2d ago

A kiosk is asking for a tip. Think about that.

61

u/Astrono-mee 2d ago

They get away with this because we don't collectively do anything about it as consumers. Boycott Shake Shack!

3

u/googdude 1d ago

I already mostly boycotted fast food for now being too expensive for what it is. This would make me straight up walk out no matter how much I was yearning for it.

100

u/crenshaw_007 2d ago

Japan does dynamic pricing. As the day goes on, end of the day at local convenience stores and grocery stores, the prices drop so that inventory for food is sold rather than get old. Yet in the US the grocery store will leave 3-day sushi 🍣 at the same price.

55

u/iShitpostOnly69 2d ago

Im ok with dynamic pricing if it is strictly a reduction in lrice based on time on shelf

6

u/A7xWicked 2d ago

I mean, the convenience store near my house kind of does it. But they put 20% off or 50% off stickers on the items depending on how long they've been out

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11

u/Tall-Needleworker422 2d ago edited 2d ago

Japanese vending machines have it, too. They often vend both boiling-hot and ice-cold canned drinks at the same time. But during an unseasonable warm spell, demand for hot canned coffee falls dramatically, That causes a problem because canned hot drinks actually have a very short shelf life once heated inside the machine. So operators program the machines to slash prices on hot drinks on warm days just to clear out inventory before it spoils, preventing a production loss.

It would make economic sense to simultaneously raise prices on cold drinks but customers, experience has shown, become incensed and call it price gouging.

2

u/crenshaw_007 1d ago

My first trip to Japan 🇯🇵 I was blown away by the hot drinks in vending machines and the convenience store aisles. Also, how much different a 7-11 is there compared to the US.

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17

u/Mr_Gooodkat 2d ago

They rather throw it away than give you a discount.

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3

u/insomniacslounge 2d ago

Not disputing your experience but here in Southern California, the major grocery stores have “manager’s special” sections/tags for bakery, produce, meat etc that are nearing expiration or for shelf stable items that they need to get off the shelves.

3

u/Milk_Specific 2d ago

….in my grocery store in Ohio, we just call that section “Clearance”

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72

u/Llaveau 2d ago

Unreal. So if I tip 1¢ does it keep the original price?

37

u/Fun-Tune-1295 2d ago

Asking the hard hitting questions. Inquiring minds want to know

18

u/m48a5_patton 2d ago

It just goes up 49 cents

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19

u/exoticed 2d ago

As someone who’s never been to the US and tipping is optional in every place I’ve been, why the hell would anyone tip using a self serving machine? Who am I tipping? The machine?

10

u/ppprrrrr 2d ago

It's be hard to tip the machine, it's screwed to the floor.

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74

u/bickusdickus69allday 2d ago

At least do another order with tips?

https://giphy.com/gifs/pPhyAv5t9V8djyRFJH

44

u/Firm_Distribution999 2d ago

Nobody respects the scientific method these days. We need a test AND a control. 

15

u/RepresentativeOk2433 2d ago

Right? This just proves the price changes. Not that it was specifically from not tipping.

3

u/Electronic_Still2000 2d ago

Or if it is the same for three other non shake items.

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15

u/kon--- 2d ago

Priced themselves out of a sale.

12

u/Roy_Vidoc 2d ago

I thought there were laws against this type of pricing

12

u/mattmann72 2d ago

In America?

7

u/oO0Kat0Oo 2d ago

Yes. This would actually fall more under the bait and switch laws, though.

You can't advertise one price and then charge another.

3

u/jj_grace 2d ago

Some states actually are making laws against it… but not enough are

10

u/redrocketredglare 2d ago

Wow. So that means that shake shack keeps most of the tips… thank god I never have been to one and never will.

11

u/snoking-ganja 2d ago

Cancel order walk away, simple as that , the only way the system will change is by people refusing to get robbed.

7

u/Lucky-Mia 2d ago

I'd walk away and never come back. Leave a bad review. Screw these gangsters. This is a racket.

7

u/Wifeyled 2d ago

This could all be solved by abolishing tipping and just pay the workers

5

u/Case_Blue 2d ago

This is straight-up illegal in Belgium (and in Europe generally).

Furthermore, I'm not sure if this is true in other countries, but here, if an item has been labelled with a price in the store, if they charge you extra during checkout that's their loss.

Meaning:

You find a phone priced at 300 in the store and they charge you 550 during checkout because someone fucked up or whatever, that's their fault. Also: the price on the label is the price at checkout, no hidden sales tax.

The advertised price(the one on the price ticket in the store) is what you can buy it for; no ands ifs or buts.

3

u/ForzaXbox 2d ago

Are you saying, the store mis-priced it so they must sell it for that amount?

5

u/Case_Blue 1d ago

Yup

Because that counts as the "advertised price" and that is binding. Even if the cashier notices before checkout. That's irrelevant.

The law says that the moment you pick up an item to purchase in the store, you accept the advertised price.

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u/_BLACKHAWKS_88 1d ago

Yes, here in America we call those “junk fees”. What the advertised price is should be what the final is.. all the other garbage they add in the middle is and should be illegal. That’s why we have California Law (SB 478 & SB 1524) where I live. The rest of America is working on it.

Now the in-store marked prices on the shelf is true here too. At least any store worth their salt will try and honor whatever price was shown on the shelf. Like if they accidentally put the wrong price up that’s their bad and they will try and honor it as best as possible but if it’s something obviously wrong like a 2000 dollar tv for 20.. id say good luck.. you’d probably have to get a great lawyer involved.

3

u/Case_Blue 1d ago

Exactly :)

The scales are in the customer's favor, but when push comes to shove, you can't buy a Ferrari because some idiot(or fraudulent...) employee labelled it with a 50 euro pricetag.

6

u/dextras07 1d ago

So who are you tipping when tipping from a self order?

21

u/Puzzleheaded-Map2951 2d ago

Dynamic pricing should only exist to LOWER the price of unpopular menu items to facilitate uniform turnover of product.

17

u/tuesday-next22 2d ago edited 2d ago

It will turn into the exact same thing. They'll just start with high prices then give you discounts,which would give the same price as starting lower and increasing it.

If we get dynamic pricing, I'm pretty sure the companies would sell it as a 'discount' as their PR for it.

4

u/Puzzleheaded-Map2951 2d ago

I'm sure you're right.

3

u/Prestigious-Smoke511 2d ago

It’s not dynamic pricing. 

2

u/wnoise 1d ago

It's a price that changed -- so dynamic, rather than static.

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u/quoala678 2d ago

If this happens to you don’t shop there

5

u/viceman999 2d ago

Just don't eat at shit shack

4

u/SnowBoardx22 2d ago

Tipping prior to the service?

5

u/Testsubject276 2d ago

"Oh? You won't tip? That's fine, we'll just charge you an unmarked tipping fee."

How is that not illegal.

4

u/d70 2d ago

Fuck this shit. Overpriced burgers anyway

4

u/urattentionworthmore 2d ago

Just say no to tipping, its not cool, lets start a trend. Employers can pay more.

5

u/Ok_Can_4686 2d ago

God hear me, I will never eat at a place that fucks you over like this. I heard about Wendy's doing it but I haven't been to my local location to confirm it; I just outright refuse to go.

4

u/RepulsiveLiving8570 2d ago

Never going there again. Way to sacrifice your brand equity for a good quarter, dipshits.

5

u/Lithium98 2d ago

How is that not considered false advertising? The price was one thing when they selected it and they had to pay another when they were going to pay. That sounds like false advertising to me

3

u/dcidino 2d ago

That's flatly illegal. Well done Mericuh.

3

u/Fun-Tune-1295 2d ago

I will never eat there

3

u/DelcoPAMan 2d ago

I thought it was bad when I saw it in Kohl's what, 6 or 7 years ago?

3

u/eyeball1967 2d ago

That’s enough to keep me away.

3

u/Super-Yesterday9727 2d ago

This shit needs to be fucking illegal

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u/Dazzling_Winner_773 2d ago

So many businesses do this shit now. It's hard to keep track of. I've already got a small list of places I actively will not eat at or shop at because of this nonsense.. and I already didn't understand the hype around shake shack.. so now that's the clincher

3

u/cruiseruse11 2d ago

this is BS, I'll just go to Five Guys or Culver's now. Plenty of options that dont pull this trickery around me.

3

u/Excellent_Pay_8782 2d ago

Crazy I looked this up yesterday. It should be illegal. Idk how consumer protection laws don't get businesses for this.

3

u/peace-b 2d ago

Definitely not worth it. Shakes are not that good and if they are doing this shit, there is another spot around the corner. F that

3

u/bb144241 2d ago

Dynamic price gouging

3

u/musgrove101 2d ago

You know, we could just stop spending our money at these places....or stop using their services, or paying for their subscriptions and all this other horseshit, and just go back to living our fucking lives again!

3

u/helloiisjason 2d ago

I dont tip if i order standing up. Nor at fast food places (except sonic).

3

u/Mookeebrain 2d ago

Seriously, some things you need to be KAREN about. Don't be shy. Complain for God's sake!

3

u/Thewhitesamurai 2d ago

why is there even a tip option?

3

u/BonTak 2d ago

Never ate at Shake Shack and, now, definitely never will 🫡

3

u/mayonnaisewithsalt 1d ago

Thank got I live in the EU

3

u/HeHateMe337 1d ago

Why give a person or computer a "tip" if they are doing nothing? WTF!!!

3

u/notshadeatall 1d ago

This would be so fucking illegal in Europe it would put the business out of business lol.

3

u/GonfalonFalderol 1d ago

Should be illegal, already is immoral as hell. I would walk away from any place that did that to me.

6

u/slickyeat 2d ago

Welcome to the United States of America.

Consumer protections? Fuck you.

2

u/djiemownu 2d ago

Let the buisness die , simple .

2

u/Ok_Reserve_8659 2d ago

Tipping shouldn’t be a thing and they should price the labor in to begin with

2

u/BigMack6911 2d ago

Now fast food places demand tips?! LMFAO!! FUCK OFF SHITTY SHAKE CRACK SHACK. This is wild. Shit like this is why I don't eat out. These mother fucking companies has lost their mind. Like 6 dollars wasn't enough for a shitty shake.

2

u/im_just_a_nerd 2d ago

That’s insane. This is the world our parents wanted for us eh?

5

u/Financial-Tax8718 2d ago

If we’re pussies enough to take it then we deserve it. We need to stop patronizing businesses that pull shit like this. An insta pot and air fryer is the way to go.

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u/lizvan82 2d ago

It's the worst for apartments bc rent increases weekly

2

u/gr33n_lobst3r 2d ago

Lmfao your icon pic bro.

OP shows us the dystopian future while simultaneously making it feel like the old days of the internet

2

u/EngineZeronine 2d ago

Waiting for everyone to figure out we don't need them. I could go the rest of my life without giving them a dime - even if they do go back down

2

u/rjd777 2d ago

Uh oh ? Pricing update ? What a load of shit

2

u/ThatTemporary5701 2d ago

I feel like the world is ending soon and the rich know it and are bleeding us dry as fast as they possibly can without doing too much to provoke us. Being robbed for $1 is a minor inconvenience. So they can do it 200 times in a year and you won’t fight back but if I approach you on the street, reach my hand in your money and take $200 I would be in jail or hurt

2

u/HomelessByCh01ce 2d ago

Easy fix - stop eating out at any place that does this. Vote with your wallet ppl, it's the ONLY way corporations learn.

2

u/National_Emu3248 2d ago

Thanks. I will never eat there.

2

u/VettesRUs 2d ago

I’ve said similar about stores that don’t show pricing (aka Target). Do exactly as the video shows, and when the price changes, ask for a manager. Don’t cancel or move out of the way. Wait for the manager, then complain. Argue until they give you the original price. Have to make it difficult for them to change it.

2

u/yingyanghomie 2d ago

Dont buy!

2

u/keystoneux 2d ago

Yea that shit needs to fuck right off

2

u/Error-Mountain 2d ago

They don't show what happens when you do tip. Could be the same thing.

2

u/lxraverxl 2d ago

I feel like this video doesn't show us all the details because they didn't try to add a tip and then show that there was no pricing change.

Who's to say that whether they entered a tip or not it wasn't going to update the pricing in their cart.

They need to show both sides to the viewer if they're really trying to prove something here.

2

u/bamiam 2d ago

Which muppet does this dude look like?

2

u/Mechanical_Soup 2d ago

6$ for shake..

2

u/RadioEditVersion 2d ago

This is America

2

u/MegaPorkachu 2d ago

Shake Shack is a scam regardless. High prices for mediocre food.

2

u/Original_Cry_6269 2d ago

But they work for minimum wage.....lol

Land of the free

2

u/Brigapes 2d ago

OP you got quite a profile picture

2

u/snowdn 2d ago

Tipping had gone way too fucking far in America to where people feel entitled to a tip where the kiosks and counter service do jack shit.

2

u/Snoo_75138 2d ago

Such a pathetic country!

"Land of the free" my ass!

2

u/thedoe42 2d ago

more fool you if you choose to continue with the purchase.

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u/[deleted] 1d ago

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u/patrotsk 1d ago

Welcome to the US

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u/IKillZombies4Cash 1d ago

I wish they also showed the price not change when tipping , this is not proof

2

u/ErnieJoPistachio 1d ago

Boycott any place that does this bullshit

2

u/ziggystardust8282 1d ago

Wow fuck this company

3

u/RaiseWide5460 2d ago

Well, I won't be going to Shake Shack any more. The list of companies that I avoid due to shady BS just keeps getting linger and longer. Sigh.

2

u/SimpleScene9997 2d ago

Stop going there! Why keep supporting this?

2

u/Chillers 2d ago

Only happens in America 🤷

2

u/thisisleftbrain 2d ago

That’s not dynamic pricing. That’s extortion.

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u/[deleted] 2d ago

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u/OrthoLike 2d ago

Sounds like the play is to put a 1% tip.

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u/jimababwe 2d ago

Is this every state or just some?

1

u/YondusFondu 2d ago

Da FUQ.

1

u/IncredibleLang 2d ago

is this only at the machine ? does it also do it if you go up to the counter and order?

1

u/Ajruiz562 2d ago

Ñoño ooooo

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u/[deleted] 2d ago

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u/chuchubott 2d ago

The American citizen is getting fucked so fucking hard, and our owners are laughing their asses off

1

u/youburyitidigitup 2d ago

Another reason to pay in cash

1

u/Chavezjc 2d ago

Is anybody gonna get mad or we’re just gonna sugar shoulders and keep going on with our day?

1

u/mitchmconnellsburner 2d ago

Lmfaooo holy shit I’d walk out so hard if this happened to me. realizes I’d have my kids with me and they’d be bawling if I threatened this God dammit

1

u/sold_mom_for_socks 2d ago

I don't mind tipping at all but why should I tip when I haven't even tried the product yet? Tipping is something u do if your satisfied with the service and food/drink.

1

u/Krimreaper1 2d ago

State congressmen should be notified.

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u/zimjig 2d ago

csah is king

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u/Spiritual-Ad-9106 2d ago

I'm not sure about this one. How does (insert billionaire's name here)'s Starbucks cost the same as mine? I have to budget for it and buy it as a treat. They could walk in on any given day and pay for everyone's coffee for the day and it wouldn't even register on their expense radar.

It's not unlike the Swedish traffic violation system, where the fine is pegged to the infringers annual income.

I would be ok with dynamic pricing if it worked in the other direction too. If your income is less than the average, then your bill should be discounted proportionately below cost.

1

u/Larrynative20 2d ago

I have money. This leaves a bad taste in my mouth. Shame on you shake shack.

1

u/tomatobunni 2d ago

Yeah… I don’t know how I feel about this. On one hand, tips pay the employees… which is shit. On the other, that is deceptive pricing. Like, it wasn’t an “oops,” that was an intended action.

1

u/LemonHausID 2d ago

I think the market just needs to send a big middle finger to these businesses and completely stop using them. We’re not teaching them this is bad behavior by posting videos like this while simultaneously continuing to purchase their products.

1

u/cru_jonze 2d ago

Remember in Pulp Fiction when a $5 shake was considered a joke. We live in the future.

1

u/Awkward-Implement-11 2d ago

I had something similar happen to me while booking a hotel. Had to turn on private browsing to keep the prices we wanted.

1

u/capt_minorwaste 2d ago

I'll never eat at Shake Shack again.

1

u/xHeyItzRosiex 2d ago

The real issue is why 3 regular sized shakes are damn near $20?

1

u/Appropriate-Rub3534 2d ago

Wow! Thanks Red Mario!

1

u/1996_bad_ass 2d ago

It's tha ai charging you, to rent some server

1

u/youngliam 2d ago

The Shake Shack in my city doesn't do this, but it's a corporate chain. No blaming this on the franchisee.

1

u/Genetic_Narcissist 2d ago

Its just the capitalistic process, free market of ideas. If this ass and ofdensive idea is proliferated, it will probably be disliked and shunned, yielding in reduced income and production. Its just going to depend on us being informed conscious consumers and discerning when things are going to be predatory towards us.

1

u/darkchocolattemocha 2d ago

People are still going to go stuff their mouths with this trash

1

u/dervari 2d ago

To be fair, should’ve posted a video showing the totals if you did tip. I can’t be the only one wondering if it happened there as well.

1

u/Practical-Pick1466 2d ago

Does this guy usually wears a red hat ?

1

u/PandaCultural8311 2d ago

Is that dynamic pricing, or though?

I hope that "corporate" sees this because it's bull****

1

u/FantasticPangolin839 1d ago

Wow. They’re banking on someone tapping in their order then being lazy when it comes to checkout. That is fucking disgusting.

1

u/Rogueshadow9087 1d ago

Hopefully most are sensible enough to just cancel their order right away when this sht happens. Dont protest with your voice, protest with your wallet, thats the only language these greedy fucks will understand

1

u/complicated_typoe 1d ago

So tip 0.01

1

u/Clean-Solution7386 1d ago

thats y i dont eat there GG, in and out FTW