Pizza Hut is joining other large restaurant chains in testing interactive tablets for ordering and payments. As we’ve written about in the past, there are numerous potential implications of rolling out new guest-facing technologies, and Pizza Hut is smart to test before risking investments in tablets network-wide.
APT announced today that Skylark Group, Japan’s largest operator of family-style restaurants, has licensed APT’s Test & Learn software to test a variety of critical business issues, including promotions, pricing, newspaper inserts, and remodels. This announcement highlights the growing internationalization of scientific business experimentation: Skylark joins such global restaurant leaders as McDonald’s APMEA, Costa, and Subway who also license APT’s software.
To read more details about Skylark’s partnership with APT, please click here.
“Half the money I spend on advertising is wasted. The trouble is, I don’t know which half,” John Wanamaker famously said. In a recent blog, Alan Mutter discusses how consumer-facing organizations are using APT to isolate the incremental impact of each media investment. An excerpt from his post is below.
“Nowadays, Wanamaker could find out, with considerable precision, by hiring Applied Predictive Technologies (APT), a Virginia-based company that mines all manner of data to determine not only the optimum ways to buy advertising but also where to locate bank branches and which under-performing entrees to nix from restaurant menus…
…With customers like Walmart, Lowe’s, Office Depot, PetSmart, CVS, Target, Walgreen’s and many other global merchants, APT asserts that it captures and crunches 20% of data generated in the “U.S. retail economy.” It bounces this rich transactional data against everything from weather records to Twitter streams to help companies “measure the profit impact of pricing, marketing, merchandising, operations and capital initiatives.”
Click here to read the full blog.
Nation’s Restaurant News recently published an article by APT SVP Jonathan Marek about the five often overlooked facts about restaurant pricing. Jonathan discusses the following about pricing strategies:
- “You can’t understand the impact of changing prices without a test versus control analysis.”
- “Cross-elasticity rules restaurant economics.”
- “Price elasticity varies by store — a lot.”
- “If you have a franchised concept, your franchisees are likely testing prices for you.”
- “Pricing analysis should not be outsourced.”
Here is the link to the full article: http://nrn.com/opinions/5-overlooked-facets-restaurant-menu-pricing
Convenience stores, pharmacy chains, and grocery retailers are all trying to take a bite out of restaurant sales by ramping up their fresh food offerings. According to Convenience Store News, prepared food offerings in c-stores exceeded $27 billion in sales in the US in 2012, a 7.6% increase over the previous year – in fact, convenience chain Casey’s General Stores is even offering pizza delivery in a select number of locations. (more…)
APT SVP Jonathan Marek recently wrote an article for QSR Magazine about five trends restaurants can expect in 2014. These trends include taking advantage of mobile ordering, profiting from variable pricing, growing slower dayparts, managing labor costs, and better understanding the effectiveness of daily deals. Click here to read the article.
Computing Magazine recently featured an article about how Costa, one of the world’s largest coffee chains, is using APT’s Test & Lean software to make more profitable decisions. Here’s the link to the article: http://www.computing.co.uk/ctg/news/2307097/costa-selects-analytics-firm-apt-to-sharpen-up-its-decision-making
A short preview of the article is below:
Matthew Price, finance director at Costa, said that it was “critical” for the coffee chain to have the best tools in place to quickly generate insights that create value for the business.
“APT is instrumental in improving the analytic rigor and speed with which we make decisions on store investment and the right range of products,” he said.
“The ability to automate complex analytic processes has not only provided more accurate decisions, but it has significantly decreased the time required to understand the impact of each new idea,” he added.
Recently, restaurants like ThinkFoodGroup’s Jaleo added tablets to their tables, discarding traditional paper menus in hopes of leveraging flexibility offered by digital devices to improve guest experience and sales.
ThinkFoodGroup, which is testing iPad-based menus in two of its restaurants, including DC’s Jaleo, is smart to try this idea before investing significant capital. Cost is not limited to the $500 up-front investment per tablet; it also includes employee training, breakage, and theft (Jaleo has already reported four stolen tablets). Additionally, restaurants must ensure that guests are comfortable with the new experience and are not turned off by technology at the table. (more…)
A recent article in Nation’s Restaurant News discusses Bruegger’s Bagels new partnership with Caribou Coffee. The two chains are trialing two co-branded units in Minneapolis to get a preliminary read on the idea’s validity.
A co-branding strategy, very familiar to holdings companies such as Yum!, Focus Brands, and Dunkin’ Donuts, introduces three interesting questions: (more…)
In a recent Wall Street Journal article, Dr. Jordan of Penn State’s Smeal College of Business, discusses the challenges of Big Data for companies. APT’s software suite has been designed to solve many of the challenges outlined in the article, as evidenced by the more than 100 leading organizations that leverage APT daily. (more…)