Industry

Consumer & Retail
Restaurants

Company Profile

  • Top-tier casual dining chain
  • 500+ locations in the US, over 300 in other countries 300 SKUs;

Situation and Objectives

  • Create brand pricing strategy while accounting for local dynamics (customer and competitive)
  • Support in brand pricing strategy and detailed pricing tactics at menu, and local level

Approach

Results

  • Identified cornerstones or brand pricing policy at national level to support brand communication and support customer acquisition
  • Identified actionable drivers of local price sensitivity
  • Derived 12 restaurant clusters requiring specific pricing tactics and enabling to capture the brand’s untapped pricing power
  • Defined actual price points by cluster
  • Created revenue management processes and tools, to make cluster-based price differentiation approach sustainable

Impact

  • 2.1pts Return on Sales
  • Volume-neutral
  • 95% franchisee compliance