Industry

Consumer & Retail
Restaurants

Company Profile

  • $250m annual revenue
  • Pizza delivery service
  • 250 SKUs; portfolio mix of main dishes, drinks, and desserts, including menu bundles

Situation and Objectives

  • Identify opportunities to improve the pricing and perception of the delivery service
  • Define measures to improve the communication and pricing of the delivery service
  • Elaborate implementation plan

Approach

  • Conduct consumer research to understand value perception and willingness to pay for the delivery service
  • Analyze the current delivery process to understand costs and factors that influence delivery time
  • Define a new pricing concept, including discounts for pickups at the restaurant and delivery that takes longer than a defined time period (e.g. 30 min.)
  • Elaborate a detailed implementation plan for the measures, including a description of the necessary adjustments in communication, IT, and supply chain

Communication of New Pricing Concept

Results

  • New pricing concept with a differentiated approach to delivery prices
  • Value of the delivery service better communicated by introducing a discount for restaurant pickup and delivery that takes longer than guaranteed
  • Implement plan, including necessary adjustments in communication, IT, and the supply chain

Impact

  • 3% revenue
  • 2% profit
  • 3% guest count