Breakthrough improvement of the results of a leading restaurant chain in its market through the definition of a new pricing strategy
Issues
- Occupancy rate less than optimal in certain restaurants, mixed performances across the network
- Average receipts down due to reduced VAT
Goals
- Determining the price/volume elasticity of the restaurant chain's offer, taking into account average receipts
- Segmenting the network of restaurants according to price elasticity
- Defining a new pricing policy for each segment of restaurants and by type of product (appetizer/main course/dessert, etc.)
Results
- Roll-out of a new menu applying Advancy's pricing recommendations two months after the fact, good price image maintained
- Increase in the number of place settings: +3% in a declining market
Note: Some data have been changed for confidentiality reasons