Industry

Consumer & Retail
Restaurants

Company Profile

  • $300m annual revenue
  • QSR (quick service restaurants) franchise system
  • 150 SKUs; portfolio mix of main dish, sides and drinks incl. menu bundles

Situation and Objectives

  • Identify opportunities to improve profitability and keep growth
  • Define measures to improve price architecture, price communication and promotion management
  • Elaborate implementation plan incl. test phase

Approach

  • Consumer research to understand key budget constraints and preferences concerning price communication and promotion
  • Analysis of historical data to understand revenue and profit impact of price, assortment and communication changes in the past
  • Definition of measures to improve price architecture, price communication and menu board design as well as promotion plan
  • Elaboration of detailed implementation plan for measures incl. test concept for measures with a higher revenue risk

Pricing Concept

Results

  • Clear price hierarchy addressing low, middle and high budget customers
  • Menu board design with less focus on price and more emphasis on product value
  • Promotions with focus on new customers and an improved guest count in off-peak hours
  • Implement plan incl. test concept

Impact

  • 7% revenue
  • 9% profit
  • 4% guest count