Situation
Our client is a prominent fast-food restaurant chain with a goal to create a competitive edge through optimized pricing strategies across a diverse portfolio. They sought to understand the effectiveness of various promotional activities to improve pricing strategies and maximize revenue across nearly 1,500 outlets in the US.
Revenue increased through optimized pricing.
Other challenges included evaluating the return on investment for different promotional activities and determining price elasticities for both individual beverages and combo meals.
To enhance revenue performance, our client also needed recommendations for optimized pricing tiers.
Action
Tapping into our data and analytics expertise, we utilized advanced data analytics and a revenue decomposition model to identify revenue drivers within the client's portfolio. Our approach included analyzing traffic, incidence rates, and pricing data to develop a revenue decomposition framework.
We implemented a price optimization tool to recommend optimal price points for each product category. To build a comprehensive view of factors impacting revenue, data was integrated from various sources, including POS systems, demographic insights, and competitive analyses.
By identifying the most effective promotions and adjusting strategies as needed, our client can now focus on high performing activities. Our analytics solution enabled our client to increase revenue by 6% through optimized pricing across all categories.
Results
- Actionable insights on revenue-driving factors such as daypart, service modes, and beverage assortment.
- Data-driven promotional planning and pricing strategies for maximum impact.
- Long-term pricing strategy refinement achieved using comprehensive analysis with granular insights into traffic, beverage incidence, and competitive landscape.
Data analytics and revenue decomposition model used to identify revenue drivers.
We implemented a price optimization tool to recommend price points for each category.
Data was integrated from POS systems, demographic insights, and competitive analyses.
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6%
Increased revenue through optimized pricing -
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1500+
Outlets were included in the price optimization activity -
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1,300+
Outlets implemented the pricing recommendations