APT President Patrick O’Reilly discusses how restaurants are using Test & Learn to improve the return on their capital investments.
Due to delayed spending on remodels during the “Great Recession,” some restaurant leaders today are confronted with how to address an aging fleet of restaurants. In general, capital programs are both a necessity to maintain brand standards across a restaurant network, and an opportunity to drive incremental cash flow. When executed correctly, with the appropriate emphasis on accurate and actionable measurements, remodels can drive significant shareholder value. (more…)
A recent article in Nation’s Restaurant News highlights a few capital investments strategies restaurants are taking to enhance guest experience. For example, Domino’s is testing a “Pizza Theater” prototype while Panda Express is investing in digital signage. As restaurants experiment with new design ideas, it is important to accurately measure guest response by location and understand which remodel elements are driving this response. By testing multiple design components (i.e. new TVs, adding seating, digital signage, etc.), restaurant executives can mitigate risk and reduce costs by only investing in those components that are scientifically proven to increase program ROI. (more…)
Starbucks Free WiFi offering is all over the news today. Andrew Hickey at CRN had the most interesting analysis we’ve seen, giving 5 reasons why Starbucks is making this leap. Reasons range from competition with McDonald’s to the simple fact that (short of trapping customers on an airplane) it’s becoming so you can’t charge for WiFi anymore.
Reason #2 is the most interesting, but stops short of the real point:
It’s all about targeting the consumer. (more…)