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Author Archives: CCorman

Is It Time To Take Your Space Planning Beyond Average?

September 2nd, 2014 | Posted by CCorman in Uncategorized - (Comments Off on Is It Time To Take Your Space Planning Beyond Average?)

When Isaac Newton famously created his third law – “for every action, there is an equal and opposite reaction” – he may not have known he was also talking about allocating space within a store. Space planning involves a series of trade-offs whereby when one category receives additional space, another category loses space. Newton was only partially right, though. Yes, when one foot is given to Category A, Category B must lose one foot of space. However, the sales impact is not usually equal and opposite. Every category generates different sales per unit of space. Even more importantly, every category generates different marginal sales, that is, the amount of sales it generates for each additional foot of space it receives. (more…)

Competing with Fast Casual

August 6th, 2014 | Posted by CCorman in Restaurants - (Comments Off on Competing with Fast Casual)

APT SVP Jonathan Marek says that fast casual has been the single most important secular trend in the restaurant industry. Watch this video to hear his thoughts.

APT’s Software Suite for Restaurants

July 28th, 2014 | Posted by CCorman in Restaurants - (Comments Off on APT’s Software Suite for Restaurants)

APT SVP Jonathan Marek discusses APT’s software suite for restaurant organizations, which includes Test & Learn, Menu Analyzer, and the APT Index.

What Digital Ordering Means for Restaurants

July 18th, 2014 | Posted by CCorman in Restaurants - (Comments Off on What Digital Ordering Means for Restaurants)

In a recent article for Chain Store Age, APT SVP Jonathan Marek discusses how digital ordering is impacting the restaurant industry. He also discusses questions that arise as a result of digital ordering, and how Test & Learn can help restaurants confidently answer these questions. Click here to read the article.

Consumers Spend $5.1B on Father’s Day Weekend

July 14th, 2014 | Posted by CCorman in APT Index - (Comments Off on Consumers Spend $5.1B on Father’s Day Weekend)

The APT Restaurant Index showed that restaurant sales rose [+1.7%] during Father’s Day Weekend this year compared to the same time last year, translating to a total spend of $5.1 billion.

Overall restaurant sales comps remained practically flat in June, with a [-0.06%] decline. A [-1.8%] decrease in number of transactions was offset by a [+1.8%] increase in dollars per transaction.

The APT Index provides restaurant organizations with a hyper-local benchmark of restaurant sales data in the areas immediately surrounding their locations. Based on actual sales data from tens of thousands of restaurant locations, the APT Index helps in creating restaurant-specific benchmarks, understanding the impact of national campaigns and major events, and explaining performance to investors.

Click here to download a sample report from the APT Index.

Common Mistakes in Menu Pricing

July 8th, 2014 | Posted by CCorman in Pricing - (Comments Off on Common Mistakes in Menu Pricing)

Getting pricing strategy right may be the most challenging task for restaurant organizations — wrong decisions can lead to guests trading down to lower-priced items, or lost traffic. Similarly, failing to take price where it’s available can leave millions of dollars of profit on the table. In this video, Jonathan Marek – APT SVP and Restaurant Practice Head – discusses common mistakes restaurants make when setting menu prices, and the need for a robust Test & Learn process.

What Digital Ordering Means for Restaurants

May 14th, 2014 | Posted by CCorman in Restaurants - (Comments Off on What Digital Ordering Means for Restaurants)

GrubHub’s recent public offering and rapidly growing user base (~4 million active users) is generating increased interest in understanding how online ordering will impact the restaurant business. APT’s recent survey of our restaurant customers shines light on the increased attention restaurants are placing on online ordering: restaurants reported that online & mobile ordering comprised 31% of all tests within operational initiatives in the last year. (more…)

Red Robin on Using Test & Learn to Make Profitable Decisions

March 26th, 2014 | Posted by CCorman in Restaurants - (Comments Off on Red Robin on Using Test & Learn to Make Profitable Decisions)

In a recent All Analytics article titled “Red Robin Plates Up Big-Data Insight,” Chris Laping, CIO at Red Robin, discusses how the gourmet burger chain is using APT’s Test & Learn software to understand the incremental impact of large dollar investments across their business. Click here to read the article.

“Rather than go it alone on big-data analytics, Red Robin has partnered with a ‘really smart company to help do that test-and-learn stuff,’ Red Robin CIO Chris Laping said… The ‘really smart’ partner helping with the test-and-learn is Applied Predictive Technologies, or APT, a cloud-based predictive analytics company that’s built up a discipline and set of analytics tools for Red Robin.”

APT Launches Restaurant Index; Comps Fall 0.6% in February

March 20th, 2014 | Posted by CCorman in Restaurants - (Comments Off on APT Launches Restaurant Index; Comps Fall 0.6% in February)

Applied Predictive Technologies (APT) today announced that U.S. restaurant sales for the month of February fell [-0.6%] nationwide. But despite the overall February decline, the APT Index, which compares this year’s sales to the same period last year, indicated a “polar thaw” as increasing temperatures were followed by an increase in sales comps.

In the first half of February (2/1 to 2/14), the average temperature was 35°F and sales comps were [-2.2%]. However, in the second half of the month (2/15 to 2/28), average temperature climbed to 43°F and sales comps grew to [+0.9%].

The APT Restaurant Index enables restaurant executives to understand their “true comps.” Instead of simply looking at year-over-year changes, restaurant organizations can now compare each of their location’s sales to restaurant performance in the area surrounding their locations. These insights enable executives to understand if their restaurants are actually under- or over-performing, adjusting for local market factors outside of the control of decision-makers.

Click here to read the full story.

The Secret of Selling the $5 Footlong

March 12th, 2014 | Posted by CCorman in Restaurants - (Comments Off on The Secret of Selling the $5 Footlong)

A recent Wall Street Journal article, The Secret of Selling the $5 Footlong,” discusses how marketing innovation is fueled by a consistent process of experimentation. In the article the CMO of Subway, Tony Pace, says that staying ahead is “all about testing and learning.” He adds, “there is plenty of data, but big data doesn’t mean you get big insights. Companies have to sift through the data and come up with hypotheses and test them.”

Subway is a long-time, valued APT client.  They, like dozens of other restaurants, leading retailers, banks, hotels, telecom companies, and manufacturers, leverage Test & Learn to make faster, more accurate decisions.