Building the Value Equation as We Approach the Price Ceiling | Modern Restaurant Management | The Business of Eating & Restaurant Management News

Striking a balance between value and price. Is it possible?

As inflation continues to pummel businesses and consumers, QSRs are searching for ways to make their menus work harder. At the same time, consumers are looking for ways to stretch their dollars. Is it possible to strike a balance between value and price to satisfy both parties?

To answer that question, Revenue Management Solutions (RMS) examined two factors: the impact of price increases on QSR sales performance and consumers’ perception of value.

Have We Hit a Price Ceiling? To determine the impact of price increases on sales performance, RMS analyzed in-store price increases by percentages year over year (Q2 2022 vs. Q2 2021) for 25,000 QSR locations in the US across numerous brands. Our findings confirmed that customers would “trade out” due to steep price increases, as noted below.

As prices hit the ceiling, traffic drops significantly.

The “magic” number that sends guests running? As indicated…

Jana Zschieschang

Jana Zschieschang is Chief Marketing Officer of Revenue Management Solutions, LLC, a global enterprise providing patented, data-driven solutions and services that drive sales and profitability for over 100,000 restaurants in more than 40 countries and 20 languages. In her role, she designs global marketing and communication strategy and implementation at each of RMS’ offices in Tampa, Tokyo, Singapore, London and Paris. Before being named CMO, Zschieschang was RMS President of EMEA, where she founded RMS’s London office, quadrupled the staff and added dozens of new clients.

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Jana Zschieschang