pricing Archives

2023 Q1 Germany Edition: How Guest Behaviors Have Shifted Year-Over-Year

To better understand how consumer behavior is shifting, RMS surveyed German respondents and compared results to our Q1 2022 survey. How have price perceptions and dining habits changed? Are guests cutting back on their restaurant spending? How are they using...

January Data Proves This Inflationary Environment Is Very Stubborn

February 2023

US Quick-Service Sales & Traffic Performance QSR US traffic is slightly down compared to last year, despite weaker traffic in January 2022 due to the spread of the Omicron variant. We anticipate YOY traffic to remain flat for the next few months. ...

4 Things Every QSR Should Know to Increase Profitability– Part 2

In a recent post, we shared two essential things quick-service restaurants (QSRs) should know in 2023 to increase their profitability. If you missed it, take a moment to catch up on why and how loyalty programs, coupons, menus and the ordering experience can play a...

Why Pizza Hut Is Smoking Everyone in Traffic | First Bite Podcast by NRN

4 Things Every QSR Should Know to Increase Profitability– Part 1

Today’s restaurant consumers have changed. Not only do they perceive that restaurant prices are at their highest since Q1 2021, but they’re more price sensitive than ever and have even changed how they view menus. These changes in customer behavior aren’t necessarily...

Higher Prices, Smaller Portions, Apps – Fast Food Deals Are Changing

We asked, they answered. What QSRs should know about value in 2023

As the economy shows signs, however slight, of easing its grip, saving money remains on consumers’ minds. Considering the economic climate, we asked our analysts around the globe for their thoughts on must-watch trends for Quick-Service restaurants (QSRs) in 2023. The...

Restaurants, Grocery Stores Battle Over Consumers’ Stretched Dollars

How Much Price Is Too Much Price for QSR Customers?

The most recent third-quarter figures from the US Commerce Department indicate a 2.6% increase in the GDP. Compare that growth to the first half of the year, when the economy was headed the other way (downward), and if you squint hard enough, it may look like we’re...

November 2022

US Quick-Service Trends QSR US traffic is down 2.6% when compared to October 2021. Regarding month-over-month traffic performance, trends saw a slight decline compared to September (-1.7%). Pricing activity increased again. Year-over-year, average price increased by...

McDonald’s Is Flourishing Despite Higher Prices — What’s Drawing Customers In?

2022 Q3: What Restaurants Can Expect Heading Into the Holidays and 2023

To better understand evolving purchasing behaviors and help restaurants prepare for the holidays and 2023, RMS surveyed over 750 US diners. We asked respondents about their dining habits, spending behaviors, value perceptions and more.

Episode 12: International Roundtable – How Restaurants and Consumers Are Responding to Inflation

Here’s How Much Prices Have to Increase Before Consumers React

How Many Menu Price Increases Is Too Many?

Revenue Management Solutions Answers the Question: How Much Price Is Too Much?

What is the Inflationary Tipping Point for Fast Food?

2022 Q3 Germany Edition: Guest Behaviors in an Inflationary Environment

To better understand how consumer behavior is shifting, RMS surveyed German respondents once again and compared results to our Q1 2022 survey. How have price perceptions and dining habits changed in the past months? Are guests starting to cut back on their restaurant...

Inflation Sends Restaurant Customers on a Hunt for Value

Is the Breakfast Forecast Partly Sunny or Partly Cloudy?

Preise anheben in Zeiten hoher Inflation

Restaurant Trade-Down Across the World

Key takeaways: Inflation rates are changing consumer behavior across the globe, with guests exhibiting QSR trade-down.Not all diners are spending less on FAFH; some are spending more.Data-driven information can help operators slow trade-down. In 2022, inflation hit...

A Vision of a Post-COVID Era Emerges for Restaurants

The Evolution of a Post-pandemic Restaurant Drive-Thru

August 2022

US Quick-Service Trends July QSR US traffic trends YOY align with previous months. Pricing activity rose to its highest since August 2020. Monthly average price jumped from 10.7% to 11.8%, but YOY trends are starting to level off. Breakdown of Monthly QSR Trends The...

Consumer Dining Survey: Sales Inching Up; Basket Size Trending Down

2022 Q2: Celebrating Special Occasions, the Effects of Inflation and Managing Spend

With inflation on the rise, some consumers are looking for ways to save when dining out. But how exactly are diners doing that? Are they opting out on certain items, choosing less expensive restaurants or cutting back on dining out all together? And what about special...

Coffee Chains Brace for their Latest Challenge—Inflation

2022 Insights: Germany Edition

In continuation with our global series of consumer insights, RMS surveyed respondents in Germany to learn more about recent restaurant consumer behaviors and the effects of the current inflationary environment on their dining habits. What revenue channel did guests...

2022 Insights: France Edition

As part of our global consumer insights edition, RMS surveyed respondents in France to learn more about how the inflationary environment has affected restaurant consumer behavior. Do guests believe the restaurant industry is better now in comparison to last year? How...

Is a Recession Coming for Restaurants?

Americans Are Worse Tippers Now Than Pre-Covid, Survey Says

Industry Experts Weigh In on Redefining the Restaurant Value Equation

About today’s value equation, The Elliot Group Chief Brand Officer Sarah Lockyer said: “It’s not just one value equation per brand, it’s the value equation of off-premise, the value equation of dining in, and the value of price and our collective ability to help...

Part one: QSRs Look Beyond Increased Prices to Address Inflation

Key Takeaways: Quick-service restaurants (QSR) can address inflation with a combination of menu engineering and pricingConsider product availability, and analyze your menu for what’s working and what isn’tInstead of resizing, reconfigure and consider what works from...

Is it time to ease up on restaurant menu price hikes?

Episode 11: Rethinking Today’s Restaurant Experience & Value Equation

Wendy’s Holds Steady in Face of Historic Inflation

Inflation Is Starting To Take A Toll On Restaurant Traffic

Consumers Are Trading Down. Here’s How to Prevent Trade-Out

Are Higher Prices Catching Up to Restaurants?

As Restaurant Chains Continue To Raise Prices, Consumers Are Starting To Notice

Dine-in restaurant guests share recent pain points

Restaurant brands are eager to keep diners coming back but may be surprised to find that it’s not always price that sends customers away. Diners have little patience for longer wait times, but upfront communication can help alleviate their...

How restaurant brands can tackle pricing in a high inflationary environment

Philipp Laqué, Managing Director UK, International FranchisingRichard Delvallée, Senior Vice President, Consulting Services The pressures of the past two years are already causing big headaches for 2022, with conditions likely to squeeze operators even further. The US...

How to Adjust and Adapt Your Restaurant Menu to Combat Inflation

5 Restaurant Trends You Need to Know for 2022

A new year brings a new RMS report and trend predictions for 2022. Nearly two years into pandemic life, one might wonder, “Have we reached the end of the ‘new normal?” because as the latest findings indicate, the more things stay weird, the less they seem to change...

5 foolproof ways for restaurants to avoid serving up sticker shock when taking price

At RMS, we help thousands of restaurants mine mountains of sales data to uncover actionable insights. Throughout the process, we get hundreds of questions. In 2021, the question we heard most often was “How much price can I take?” The answer isn’t simple. “Taking...

Noodles & Co. Bets on Costlier Cheesy Pasta

How inflation expectations are driving inflation higher: The restaurant owner pricing loop unfolds

Jeremy Bess, Senior Director, Consulting Services at RMS As anyone who runs a restaurant can attest, the restaurant business never has a shortage of concerns. But these days, the concerns are nearly unprecedented. Based on the Labor Department’s latest price index...

New survey: Restaurant consumers spend more to eat out but cut back on delivery

Restaurant consumer survey reveals price tolerance and increased reliance on technology Another quarter has come and gone, and as we’ve done for the past 16 months, RMS is addressing the issues confronting restaurant brands, operators, franchisees and franchisors....

Fast Food Chains’ Price-Fueled Recovery

Evolution of UK Restaurant Business

Fall 2021: Consumer Price Perceptions, Technology & Delivery

In this second part of our Fall series, RMS asked over 900 US consumers about their current price perceptions of restaurants and grocery stores, their behaviors when ordering delivery, and how technology influences their overall restaurant experience.

What’s ahead for food costs?

As we look ahead to what inflation and food costs hold for the balance of 2021, restaurant operators find themselves in that strange spot between not great news but not bad news, either. Or, as Jennifer Bartashus, Senior Equity Research Analyst, Consumer Staples &...

Should you be taking price? How restaurants can deal with inflation

As minimum wage hikes and soaring food costs take a toll on restaurants, brands are raising prices to offset costs, and some are letting their customers know. But while some operators are taking a big price hike across its whole menu and in every location, according...

U.S. fast-food chains cut discounts, push pricy meals post-pandemic

Your Top Restaurant Pricing Questions Answered

At RMS, we field a lot of questions from our clients. In the past 12-15 months, our clients have had new concerns, brought forward by reduced menus, an increasing number of digital channels, labor shortages and supply chain issues. But no matter the environment, one...

Study: QSR price trends do a bit of a flip-flop

Recommended for youNewsGroundbreaking Research To Study Menu Design In The New Era Of Online OrderingOctober 2019Client Successes, NewsNoodles’ easier-to-read menus come with price increasesApril 2019NewsHow to handle menu price hikes as labor costs soarNovember...

What America’s spending its stimulus checks on

Recommended for youNewsRestaurants Get Sales Lift From Latest Stimulus ChecksJanuary 2021Client Successes, NewsFamous Dave’s Outsources Pricing to Sauce Up Its MarginsApril 2013NewsRevenue Management Solutions promotes its President of EMEA to Chief Marketing...

The impact of plant-based foods on restaurant recovery

While the chicken wars flocked to new heights this year, another burger alternative is quietly growing its share: plant-based proteins. Not confined to a drive-thru sandwich, the category encompasses a wide range of grocery and restaurant options, including nut and...

How the stimulus package will impact your sales: a nuanced approach

As the U.S. House of Representatives works to advance its $1.9 trillion coronavirus relief package, it’s safe to say that the bill’s passage would positively impact restaurant sales. After all, if passed, the bill would grant individuals up to $1,400 directly and...

Minimum wage increases: 4 tips to help restaurants brace for what’s next

In 2020, 21 states raised their minimum wage. On New Year’s Day 2021, 20 more states did the same. Five additional states (Connecticut, Delaware, Nevada, Oregon, Virginia) and the District of Columbia will follow suit over the coming months, in addition to Florida’s...

A Look at 2021 Minimum Wage Increases

In 2020, 21 states raised their minimum wage. On New Year’s Day 2021, 20 more states did the same. Five additional states (Connecticut, Delaware, Nevada, Oregon, Virginia) and the District of Columbia will follow suit over the coming months, in addition to Florida’s...

Restaurant sales, traffic not so merry during holiday season

Recommended for youClient SuccessesTurning double-digit traffic decline into traffic increase and margin growthSeptember 2018NewsN.C. State students analyze how changes in a restaurant impact traffic and salesSeptember 2018NewsTo tech or not to techFebruary...

Restaurant Pricing in the Time of Corona

“Should I take price?” has been the primary question from our restaurant clients of late. Our answer, surprisingly, remains the same now as it was pre-COVID: “That depends.” We remain in the midst of the greatest challenge the restaurant industry has ever faced. Yet...

How to Improve Restaurant Margins With Better Delivery Pricing

Delivery is on everyone’s mind right now. Restaurants traditionally oriented towards dine-in, have made significant moves to implement delivery options. As restaurants expand this contactless channel, they face a complex environment with higher costs to serve....

News from Europe: What does the restaurant industry look like now?

In June, RMS Managing Directors Philipp Laqué, based in London, and Nicolas Bordeaux, of Paris, shared the state of the restaurant industry in Europe and the UK. We checked back in with our European outposts this month, with additional insights from Rosa Blanco-Vegas,...

Consumer preferences have changed. These insights will help your restaurant recover.

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Sense360 Briefing with Dora Furman

Recently our own vice president, Dora Furman, fielded questions from the Sense360 audience about the state of the restaurant industry. Watch the...

Pricing Post Crisis: What Should Operators Consider?

RMS’ Chief Strategy Officer Joel Davis leads our analytics and data strategy discipline and serves as a strategic consultant for many of our customers. He’s been asked a lot of tough questions lately about how to move into recovery – and what to do about price. Below...

Piper Sandler invites RMS Chief Strategy Officer to share restaurant industry insights in the face of coronavirus

In a recent Key Opinion Leader conversation with investment bank and institutional securities firm Piper Sandler, RMS’ Chief Strategy Officer, Joel Davis, shared his thoughts about the current state of restaurant sales and consumer spending trends in the face of the...

Building carry-out and delivery sales

It is understandable that there is a sense of panic in the restaurant industry. However, you can do things now to mitigate the effect on your restaurant(s). Our partner, Norton Creative, a restaurant marketing and design agency, has shared a number of initiatives that...

How to manage operations in this delivery-only time

For most restaurants, there have always been three ways to serve guests and make money: dine-in, takeout and delivery. Now that government authorities, in an effort to help flatten the coronavirus curve, have required all dining rooms to close, you’re left with only...

How to handle menu price hikes as labor costs soar

Recommended for youNews9 Painless Ways to Tackle Rising Labor CostsMay 2016Insights, News6 Tips to Help Restaurants Combat Higher Labor CostsJune 2017NewsRestaurant operators must plan for minimum wage hikes, other costsAugust 2014Client Successes, NewsNoodles’...

4 steps to understand customer satisfaction and pricing power

Customer satisfaction is the underlying factor that leads people to keep coming back to your restaurant again and again. The simple fact is this: when restaurant operators excel in running their businesses, diners will continue eating there. High customer satisfaction...

5 ways fast casuals can combat rising minimum wages

More states around the U.S. are raising the minimum wage in 2019. In total, 20 states will raise their minimum wage this year, with substantial increases of $1 in some states. For example, Maine’s increase will be 10 percent, Massachusetts’ is 9 percent, and...

RMS’ store-specific data enables QSR chain to recover traffic lost to new competitor

Our Client’s Challenge Following a competitor’s entrance to the marketplace through acquisition, our client began to see traffic drop significantly across all its locations. The Solution RMS analyzed store-specific data on guest traffic, profit changes and...

Boosting sales by taking it up a notch on customer segmentation

Our Client’s Challenge A Mexican QSR chain with 900 corporate restaurants and over 4,000 franchise locations faced an uphill battle. The previous year the brand had launched a highly successful promotional campaign. Now it had to top that significant sales lift....

Pricing strategy counteracts minimum wage increases

Our Client’s Challenge One of the country’s largest quick-service restaurant (QSR) chains, with more than 3,300 company-owned and franchise locations, faced a challenging 10% increase in labor costs due to the rising minimum wage, putting great pressure on...

Turning double-digit traffic decline into traffic increase and margin growth

Our Client’s Challenge A major U.S. fast-casual restaurant operator with more than 400 locations was facing margin pressures. The brand had been losing traffic for more than two years, and escalating minimum wages hit hard. To offset the related financial...

Is Dynamic Pricing Right for Your Restaurant Brand?

Many restaurant operators are taking advantage of dynamic pricing, but is it the right move for your brand? A few restaurants have been successful in executing dynamic pricing as a core part of their strategy, with the most well-known being Chicago restaurant Next,...

How dynamic pricing is changing the UK restaurant scene

Operators must constantly examine as many strategies as they can to drive footfall to their sites, increase spend-per-head and grow revenues. The latest trend to hit the restaurant scene to assist in doing just this is dynamic, or ‘surge’ pricing. It works by way of...

Combat declining traffic by understanding the ailment before determining the remedy

Customer traffic is one of the key metrics restaurant operators use to measure success. When traffic is down, many chains turn to new promotions or even consider lowing prices, but will these actions reverse the trend? Before you take action, first take time to...

5 things to consider when choosing a delivery partner

With consumers seeking convenience, it is no secret that the delivery trend is here to stay. The strong drive towards on-demand delivery has led many third-party providers including UberEATS, Deliveroo and Just Eat to enter the market. With a vast number of delivery...

What smaller chains should consider as they grow

Mine transactional data to understand customers and make smart decisions If you are the leader of a smaller, rapidly growing restaurant, you have to make decisions every day that may have a long-term impact on the concept’s success. Here are just a few examples: How...

Finding the sweet spot: What pricing strategy to use for distribution channels

For years, many restaurant operators have traditionally charged the same prices whether the menu is being used inside the restaurant, at the drive-through or for pickup, delivery or catering. But with the ever-increasing popularity of eating outside the restaurant via...

Fresh Brothers Pizza hires Revenue Management Solutions to consult on menu optimization and menu pricing strategies

Relationship with Southern California company is a good example of how up-and-coming restaurants can benefit from RMS’ 20 years of industry leadership experience TAMPA, Fla., July 6, 2017 — Fresh Brothers Pizza, a fast-growing award-winning chain of...

How to Address Same-Store Sales Declines

Since March, our inboxes have been flooded with news of same-store declines, restaurant closures, and discussions of a recession. However, this news begs the question, are customers spending less? Or are they just spending elsewhere and our data simply doesn’t capture...

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