Can small bites at small prices succeed?
Today’s USA Today has an interesting article that talks about casual dining’s attempt to draw diners in through small plate offerings. Great idea if it works, but we worry that these restaurants may not focus on the right metrics. For example, the article quotes the percent of items chosen for the new small plates in [...]
Read moreWith menu labeling on the horizon, so is in-marketing testing
When news broke this week about the passage of Obama’s health care reform legislation, the news was especially relevant to McDonald’s, Burger King, and every other large-scale restaurant chain in the nation. The new federal law requires restaurant companies with 20 or more sites to disclose calorie information on their food products, as well as [...]
Read moreThe NEW New Coffee Wars: 3 Lessons from History to Help Today’s QSR Warriors
In May 1990, Fortune Magazine asked: “What happens when two extremely large, highly capable, well-financed corporations fight it out for preeminence in a commodity business like coffee?” The answer: a decade-long “often profitless struggle” between Maxwell House and Folgers, driven by huge media blasts, ineffective new products, and round-after-round of price promotions amid waning demand. [...]
Read moreIt Seems We Can’t Get Enough of Breakfast
In yet another example of a major QSR chain joining the breakfast bandwagon, Subway announced today that it will launch its first-ever breakfast menu next month. But unlike other fast food companies, Subway is incorporating a level of consumer choice into the breakfast experience, allowing customers to customize breakfast sandwiches with topics and condiments, similar [...]
Read moreThe Key to Finding Good Pizza? Use Stats
Statistics consultant recently applied the science to user-generated reviews of the city’s pizzerias to his rigorous quest to find “the best.” Click here to read more.
Read moreBurger King’s Woes Emphasize Importance of Uniform Testing Approach
The importance of using consistent standards for analysis continues to play out in the ongoing legal battle between BK and its franchisees. In the latest volleys, both sides claim that the numbers support their version of the truth. The differences in their scientific approaches: the length of the control period and the use of seasonal [...]
Read moreThink Global, Act Local
Restaurant companies with broad networks and plans for international expansion face a unique challenge: how do you stay true to your roots while catering to local tastes? McDonald’s well-publicized strategy of offering both core and localized items appears to be hitting all the right notes, and demonstrates how the challenge of striking this balance also [...]
Read moreToo Much of a Good Thing
There’s nothing quite as frustrating as a good idea that turns out to be too “good.” Case in point: Sonic was lauded for launching a traffic-driving “happy hour” promotion in 2009. While the promotion was successful in driving traffic, recent analysis indicates that it also exacerbated a downward mix shift by cannibalizing higher margin checks. [...]
Read more