If you're in the restaurant industry, how often have you heard these statements?
My costs are going up, but if I raise my prices, my customers will go ballistic”
“I’m do busy during lunch and on some weekend nights. I’d like to charge more then, but how will my customers react?”
“The delivery commissions are just killing me. I’d like to charge more for delivery orders, but what would people say?”
If you’re worried about these sorts of things, you’re not alone. The challenge operators are facing is to maintain profitability while not negatively affecting customer satisfaction. There’s some really interesting (and useful!) research that can help us answer these questions. In this first part of a five-part series on "How to Make Better Decisions for Your Restaurant" that is appearing in QSR.com, I discuss the implications of this research and talk about how you can use it to make better pricing decisions.
In part 2, we'll talk about how to handle pricing when your costs go up.
I hope you find this interesting AND useful!