Using Data To Take The Guesswork Out Of Price Increases

Food is serious business. Now, on The Main Course, host Barbara Castiglia will invite insiders on the front lines of food to share their expertise, strategies, and forecasts for navigating the ever-changing restaurant industry.

 

Restaurants have had a tough time due to the COVID-19 Pandemic. Having to adjust constantly was challenging. But, having crucial data at their fingertips gave owners, managers, and restaurateurs essential insights into improving their operation.

“We look at the historical data of a restaurant, and based upon the data we see from their POS.” – Chris Norton

Giving insights to The Main Course Host, Barbara Castiglia is Christina and Chris Norton of Revenue Management Solutions, which helps the restaurant and retail industry identify profitability opportunities through data-driven analytics and tech-enabled solutions that optimize sales, menus, and a brand’s financial health.

“We look at the historical data of a restaurant, and based upon the data we see from their POS,” Chris said. “When prices change, when limited time offers have been added to the menu, when value propositions have been added to the menu board, we understand the reaction of the consumer based upon the historical data.”

Utilizing this data, they put it through their regression model, which helps them understand gross profit and sensitivities. This helps them understand the items on the menu board that are the most optimal to move in terms of increasing price so as not to affect guest counts. If a restaurant has a positive or negative guest count trend, the pricing they give to clients in terms of price additions will not affect that trend.

This gives restaurants the data to understand when they should raise prices on items and the optimal items to do so. This takes the emotion and guesswork out of how and when to raise prices. Then they analyze the data to see if the changes work.

A New Episode is Served Up Every Tuesday and Thursday!

Follow us on social media for the latest updates in B2B!

Twitter – @MarketScale
Facebook – facebook.com/marketscale
LinkedIn – linkedin.com/company/marketscale

Follow us on social media for the latest updates in B2B!

Latest

Rugged Edge Computing
Rugged Edge Computing for Tough Environments Follows Shift Away from the Cloud
March 31, 2023

At ISC West 2023, Premio showcases how Rugged Edge Computing can easily stand up to the toughest industrial workloads in the harshest environments without missing a beat. Many trends are shaping the modern security market with a strong focus on rugged hardware such as smart sensors. There is a shift away from the cloud […]

Read More
DTC brands
DTC Brands Struggle to Adapt With 2023 Consumers: Brand Trust and Flexibility is Necessary
March 31, 2023

Selling directly to the consumer buying your products can be incredibly profitable for a business, so why don’t all businesses sell directly to consumers? The simple answer is that there are many risks and challenges that come with running a direct-to-consumer (DTC) business, and the risks do not always pay off. The success […]

Read More
Voice AI
Voice AI: Changing the Sound of Restaurants and Transforming the Ordering Experience
March 31, 2023

Takeout and delivery are as much the fabric of restaurants today as a room full of diners. During the pandemic, many restaurants may not have made it out the other side without takeout and delivery services. Still, staffing shortages are a significant issue for most restaurants after the pandemic. Finding the balance between handling orders […]

Read More