APT President Patrick O’Reilly discusses how restaurants are using in-market testing to optimize pricing by menu item and location.
Author Archives: CCorman
Though there is certainly validity in some marketing activities designed to simply build brand awareness, the need to accurately measure all other programs is becoming increasingly important. Unfortunately, a common problem marketers face is proving the true incremental profit impact of their programs. Common “metrics” such as eyeballs, impressions, or redemption rate have typically helped marketing departments determine the success of their campaigns, but they do not clearly show the ROI of their investments. So while some executives will be thrilled to increase brand awareness, analytically-minded executives know that they also have to measure the direct cause-and-effect relationships between their marketing investments and profits. Marketing executives who use advanced data-driven techniques to prove the profitability of their ideas will drive increased trust, buy-in, and budgets from the rest of the c-suite. (more…)
APT CEO Anthony Bruce discusses recent trends in Big Data analytics.
APT President Patrick O’Reilly discusses how restaurants are using Test & Learn to improve the return on their capital investments.
A recent Businesweek article talks about some interesting menu items which have made their way onto select restaurant menus, often for a limited time. Though limited time offerings (LTOs), such as glazed donut sandwiches, pizza with a cheese pocket crust, or the famous McRib, often garner media attention, understanding whether they are truly profitable can be difficult. Using in-market testing to answer the following questions will help solve this challenge: (more…)
FSR Magazine recently published an article by Jonathan Marek, APT SVP, about strategies to consider both before implementing a loyalty program and once one is in place. Here is the link to the article: http://www.fsrmagazine.com/service/should-you-implement-guest-loyalty-program
APT SVP Jonathan Marek recently wrote a byline in QSR Magazine, which outlines the following five trends for restaurant executives to watch in 2013:
-QSRs taking steps to compete with Fast Casual
-Understanding how to optimize labor given recent legislation
-Determining optimal pricing given increasing commodity and labor costs coupled with continuing consumer pressures
-Using mobile more effectively
-Investing in in-restaurant technologies
Click here to read this article.
Taco Bell has recently begun testing the “$1 Cravings Menu” to replace their “Why Pay More” value menu. According to USA Today, the new menu lists nine items and three new offerings. Despite the value message, the “Cravings” menu is actually a slight price increase over the current “Why Pay More” menu, which includes items at 89 and 99 cents. To measure success of the program, simply looking at order incidence of the new menu items will paint an incomplete picture. For example, it is possible that price-sensitive guests who generally ordered the 89 and 99 cent offerings may visit less frequently. However, existing guests could be trading down from higher-margin offerings, showing order incidence as either flat or even positive.
In order to understand the total restaurant incremental impact of this new menu relative to restaurants that have the “Why Pay More” menu, Taco Bell executives will need to isolate the impact to both total number of guest visits and average check size. Because of the small extent of the price change, it is possible that this new menu will have minimal impact. However, to be most profitable, Taco Bell’s new value menu will need to either have no impact on existing value menu guests (who will then be paying more) or attract incremental guests who will then be drawn to higher-margin purchases, thus increasing check size and guest visits. Alternatively, Taco Bell will find the program to be unprofitable if messaging surrounding the “$1 Cravings Menu” causes too many trade-downs.
APT VP Will Weidman recently wrote a great byline for Banking Strategies about the top trends for 2013. Check out the article here.
Will outlined the following five trends:
1) Multi-Channel Impact of Mobile/Online
2) Making Money from Mobile
3) Smaller Branches with Innovative Approaches to Staffing
4) Demanding ROI from Online/Social Media
5) Selective Investments in Branch Technology
Will argues that, “as these trends drive transformations in retail banking it becomes increasingly necessary to innovate while minimizing the risk involved in innovation.” Testing continuously proves to be the leading way to de-risk innovation while maximizing profits.