Saturday, February 6, 2016

Subway, Pizza Hut, Dunkin Donuts Re-evaluate Pricing

Success does leave clues and when customer counts decline, sales become stagnant, and competitors are garnering market share it’s time to reevaluate just what you are doing according to Foodservice Solutions®, Grocerant Guru®. Regular readers of this blog know that companies place limits on success, customers do not.   Our own Grocerant Guru® went on to say more often than not competition drives change.

Acclaimed Harvard Professor Michael Porter when speaking on competition stated that “Industry boundaries are expanding, and they can expand even more.  We’re going to see a combination of barriers to entry going up and the opportunity for disruption going up simultaneously.”  If restaurants are careful that may end up looking like Burger Chef or Kodak.

In 2016 Price has become a barrier in retail foodservice according to Foodservice Solutions® team.  Consumers have established new a price, value, service equilibrium which our team unveiled in late 2015 after following the undercurrents of consumer consumption patterns evolving.

Here is Foodservice Solutions® New Price, Value, Service Equilibrium Formula:

(Mobile Access + Digital Payment +Delivery) X (Price + Food Quality + Speed) = Value

 Incremental Value:  Constantly Changing Menu (Seasonally / Sustainability with Creditability).

Subway’s customers are pushing back on social media after they announced that they were now selling the selling the Subway footlong submarine for $6.00.  They were not happy about the loss of Subway’s $5 Footlong, and they’re speaking out via social media posts.    Does your company understand how to integrate a two tiered pricing plan? Are you utilizing the Price, Value, Service Equilibrium?

Competitive forces have driven Dunkin Brands to miss top line sales goals and bottom line profits.  Now Dunkin is revaluating pricing and product mix.  Yum Brands, Pizza Hut unit gained traction with $5 pizza mix and match; yes grocerant niche mix and match works.  After they repositioned product pricing to drive customer counts, sales and profits they regained sales momentum.  

For international corporate presentations, educational forums, or keynotes speeches contact:  Our Grocerant Guru® has extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert, and public speaking he will provide success clues for all. or

No comments:

Post a Comment