Big data could lead to big changes for franchise brands and fast casual restaurant.
With more data than ever before at the fingertips of franchises, is now the time for businesses to start experimenting with different pricing options? That’s the question posed by a recent report from QSR.
The news source stated that increased data on consumer and competitor activity, coupled with technology like digital menu boards, is opening up the door to changes in how restaurants price their products.
“We believe there’s a lot of opportunity for operators to move the margins on price in ways that they historically have been a little more hesitant to do,” Justin Massa, president and cofounder of data analytics firm Food Genius, told QSR.
In addition to advancement in data collection and technology, Massa pointed to the ever-changing market of restaurant models as a reason to experiment with pricing.
“Those delineations between [quick service], fast casual and casual dining are getting increasingly fuzzy,” he said. “It gives operators some freedom to experiment with price. If they view themselves only as competing against other locations in the same historic segment definition, they’re probably missing out on a bunch of folks that they actually do compete with.”
While many franchises may be hesitant to play around with a tried-and-true formula, others are realizing the old ways of doing things no longer make sense.
“Seeing more of your competitors’ pricing and making changes that way, doing like we did in the old days, is going to be ineffective,” Terri Snyder, chief marketing officer and senior vice president of Checkers and Rally’s, told QSR.
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