As one of the biggest fast-casual restaurant companies in the United States, our client was seeking the best way to optimize their pricing strategy in order to better serve key segments and markets. With the rising cost of meat and produce, alongside increasing minimum wages, this client knew they had to increase prices without sacrificing the value that their guests had come to know and love. A few key questions arose from the team:
- Was there a physiological pricing barrier that consumers were not willing to cross?
- How should the new pricing be benchmarked against key competitors?
- How should pricing differ in markets where the minimum wage (and costs) were higher?
The Strop Solution
Strop Insights conducted an in-depth analysis of the client’s historical sales and transactions in order to gain insights into buying patterns and trends. This allowed Strop Insights to determine a pricing recommendation that could be used to benchmark against key competitors operating in the quick-service and fast-casual space nationwide. With this information, Strop Insights was now armed with the information needed to construct a set of “guidelines” that would be used to establish pricing in each market based on costs and competition.
The output of the project was a pricing strategy that was directly implemented within the hundreds of stores nationwide. Additionally, Strop Insights helped the client establish a “pricing guidebook” that would now act as a reference for future pricing increases.
Typical Duration: 2-6 months
Tags: Restaurant Group