Restaurants

RESTAURANTS INDUSTRY PERSPECTIVE

It’s challenging to be in the restaurant industry. Rising food costs, upward wage pressures, and increasing competition from traditional players and new types of market entrants all present headwinds to profitable growth. And across all segments, customer expectations of price, value and service are higher than ever. 

Leading restaurant companies are starting to give advanced analytics a seat at the table. Significant value is being unlocked through behavioral segmentation of customers and locations to capitalize on marketing, pricing, labor staffing and inventory opportunities. Strategies and tactics are being dynamically adjusted to account for a myriad of business-impacting factors, including demographics, levels of competition, and time of day / day of week. With the right analytics capabilities all of this is possible, but it must be delivered in a transparent and collaborative way…because the only “black box” that you should own are your to-go containers.

“Revenue Analytics is the best in the business at deploying sophisticated analytics in a transparent and client-friendly way to drive measurable revenue and profit growth.”

Vice President of Pricing and Analytics for a leading Retail Services Conglomerate

Restaurants Value Proposition

MARKET

As companies try to attract new customers and increase share-of-wallet of existing ones, they face important questions, such as “what vehicles have the highest ROI?” and “how should we tailor our approach by segment?”. We leverage sophisticated predictive analytics to measure performance of marketing efforts at different levels – by DMA/ location, by vehicle, and by message. We then use that fact base to guide an approach to improve the returns on your marketing expenditures.

PRODUCT SELECTION

Determining what to put on the menu and what configurations to offer are key considerations. What items drive increased receipt size? What opportunities are there for product bundling? How much does location on the menu/ signage matter? We can answer these questions for you by leveraging multiple techniques, including the identification of market basket anchor items and product affinity relationships.

PRICE

For each occasion, a customer makes destination choices (where to eat) and tradeoffs when they get there (what to eat); pricing perceptions are at the heart of these decisions. The key question facing restaurants of “How do I set prices to maximize revenue and profit”? is more complex than it sounds. Most chains only update their menu pricing a couple of times per year, so getting it right is critical. Perhaps you don’t know which competitors really matter. Or how far customers are willing to drive to get to you. Or how you should price differential sizes, bundles, and new products. Perhaps you vary prices by tier and location, but are you doing it correctly? We leverage advanced analytics to identify consumer price sensitivities and establish optimal price levels for all item/ location combinations.

PROMOTE

Promotions can be an incredibly powerful lever to drive increased demand and influence customer decision behavior, but are you deploying them correctly? Do you know the true ROI of the promotions you run? What about the expected impact of a new promotion you are planning? What if you possessed the analytics capabilities to optimize your promotion decisions and scientifically measure results to ensure optimal allocation of your promotional investments? We can help you achieve this vision and ensure you’re delivering the right product to the right customer at the right time and price to drive profitable growth.

SERVE

In a world of elevated customer expectations and rising wage and product costs, it is critical for you to strike the right balance between delivering exceptional service and managing costs. Using an array of advanced forecasting techniques, we can predict consumer demand by product and time of day and marry that forecast with defined rules and objectives to inform optimal staffing plans and inventory allocation.

GROW, RETAIN 
& MEASURE

Today’s fast-paced and volatile business environment requires having access to up-to-date historical and forward-looking information. How much more effective could you be if armed with the right insights to make decisions? We can provide you with the right information, leveraging visual dashboard views and alerts to inform proactive, targeted decisions that drive results. In addition, we provide you visibility into solution recommendations that help you build confidence in scenario planning and performance measurement.

HELP ME BUILD A BUSINESS CASE FOR CHANGE

Change is hard, but it doesn’t have to be, but we can make it easy for you. After all, if your product (or service) has a price, you can use Revenue Management. That said, we bring deep industry expertise, and can help you solve for the unknowns. Click the button below to ignite change within your organization.

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