Scalable Revenue Growth Playbook: Smarter Pricing, Better Value Perception, Measurable Results in Restaurants

Background
  • High variability in elasticity, customer mix, competition, and income profiles — making current tiers pricing insufficient
  • Customer behavior revealed traffic declines, in price-sensitive clusters
  • Menu architecture issues (higher OPP, higher intra-menu gaps)
  • Competitors offered more attractive entry prices and more balanced menus
Approach
  • Cluster model development based on a Machine Learning Model (+250 variables) and complemented with competitor’s price & distance
  • Cluster based prices to close competitor price gap
  • Menu Pricing Reset and Bundles Introduction (value item)
  • Test & Learn roll-out plan
Results
  • Bundles drove incremental traffic in high price sensitive clusters
  • Upselling in items where intra-menu gap were reduced
  • Penetration increase of some elastic items
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