Industry
Consumer & Retail
Restaurants
Company Profile
- Casual dining chain
- 300+ locations
- Mix of company-owned stores and franchisees
Situation and Objectives
- Revert downward traffic trend
- Focus on creating additional visits from existing customers
- Create positive price perception and traffic while keeping margin per guest neutral
Approach
Results
- Developed segmentation to support identification of strategic pricing levers as well as tactical levers by segment and day part
- Identified consumer willingness-to-pay and price thresholds
- Optimized price points considering substitution effects and bundle options
- Redesigned combos
- Created new menu merchandising to support change of price perceptions
Impact
- From -3pp traffic trend vs. benchmark to +6pp
- Became industry’s price image leader
