Real world problems, need real world solutions.

Case Studies

From increased sales and gross margins to maximizing the impact of media spend, Revenue Management Solutions provides the building blocks for clients to reach their optimal performance. Below are several case studies that demonstrate how the RMS Difference leads to real results.

 

Recovering From Past Pricing Mistakes

Prior to working with RMS, many companies believe that the best way to boost check averages and total sales is to increase prices across the board. This belief often causes companies to adopt an aggressive strategy where price exceeds the rate of inflation, prompting a consumer backlash visible in decreased frequency and traffic.

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Managing the Impact of Minimum Wage Increases

Over the better part of the last decade, restaurateurs faced steadily increasing labor costs as numerous states passed legislation indexing state minimum wage to Consumer Price Index (CPI) and the federal government undertook its three-phase increase of the federal minimum wage under the Fair Minimum Wage Act of 2007. As labor costs mounted, RMS played a key role in one of the country’s largest quick service restaurant chains, by assisting both independent franchisees and corporately-owned restaurants better understand the price actions that would yield optimal results.
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Pricing Stores in Tiers

FastCo, a major quick-serve chain with over 1000 locations, was facing profit pressures and needed to revise its pricing strategy. The legacy policy was to price all items in every restaurant the same. FastCo realized that some locations should probably have higher prices than others, but worried that making changes in the wrong location would lead to a loss in guests. In addition, there were concerns about which items to increase and by how much. FastCo hired RMS to provide a plan for a new pricing strategy.
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Leveraging Knowledge of Item Trade Relationships

Companies often make pricing decisions based on assumptions and not science. This leaves room for error and potentially disastrous financial penalties. Prior to working with RMS, one of the nation’s leading quick-serve chain restaurants experienced the negative consequences of not having fact-based knowledge about its menu item trading relationships prior to making pricing decisions.
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Optimizing Media Spend

Companies traditionally create media plans and determine promotional strategies by looking at whatever historical information they have regarding past success and failures. One major problem they’ve always had is determining the exact impact of a promotion on sales and traffic on a transaction-level, store-by-store basis. A major pizza delivery company partnered with RMS to understand and measure the relationship between their media plans and store-level performance metrics.
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