MarketDial’s Post

📣 Why more chains are embracing the late-night business 📣 More restaurant chains are burning the midnight oil these days … or nights, rather. Rising #demand, better unit economics and an improving labor picture are enticing #restaurants to keep the lights on long after dark. With Facteus datasets we can drill down further to understand exactly what time customers are #purchasing products in each QSR. Are Denny's going to continue to win during the late night time zone?? ... or with more restaurants, like Wendy's, opening until past midnight will that change? If you would like to analyze these insights further in relation to your brand, drop me a message. Denny's The Wendy's Company Taco Bell Jack in the Box McDonald's #customerspending #facteus #actualspending #QSR #consumerinsights https://lnkd.in/dYhRhU4B

https://lnkd.in/eBzDgiwn Very interesting news that Wendy's is planning on Dynamic Pricing next year, which I believe is a first for a major QSR (Quick Service Restaurant) chain. As PPS Board of Advisors member, Martin Coalson, and others reminded me, Coca-Cola tried this briefly during the 1996 Olympic Games here in Atlanta, and it did not go over well. Customers did not accept the price of a vending machine soft drink increasing in hot temperatures. As we all know, "Culture eats Strategy for Breakfast" (Drucker) and QSRs have decades of Happy Meal / Dollar Menu culture where they have trained the marketplace to expect something very different from Dynamic Pricing. I think that this will be an interesting experiment. Pricing is everywhere... #pricing #pricingstrategy #pricingtraining #pricingstrategies #quickservicerestaurant #revenuemanagement #revenue #profit #profitability #profitablegrowth #restaurant #restaurants #business #businessanalysis #businessstrategy

The restaurant "value equation" is all the rage these days. McDonald's is gearing up for a "street fight" over winning transactions from low-income consumers. Burger King is beating them to the punch with value meals. Domino's and Texas Roadhouse haven't raised prices in years, and are crushing it on comp growth as a result. There's long been a correlation between price increases and traffic - one goes up and the other goes down. But what about retention? Do the guests who visit for the first time during an inflationary period come back? I looked at a handful of full service brands Bikky works with to see: a) how much they've raised prices since January 2022; and b) how that's impacted the 30-day retention rate for new guests. ➡️ The average entree price has increased by >26% ➡️ 30 day retention has dropped by >200 bps (from 9.3% to 7%) The only surprise here really was the magnitude of the drop, suggesting that not only do price increases hurt traffic in the short-term, but have significant longer-term effects as fewer guests decide to come back. Next step is to look at QSR / fast casual and see how that compares. My gut sense is that there will be a similar relationship, but maybe not as bad since full service dining feels more "occasional" (and therefore more discretionary from a spending standpoint) and an easier place for diners to cut back.

Many restaurants don't take a high level view into a 3rd Party Delivery Partners value. Many restaurants solely focus on cost 99% of the time (hint the reason many mark up their menus on 3PD platforms to off-set commissions). Many restaurants don't realize how much volume is lost (on some 3PD platforms) when they decide to mark up their menus. 3PD's are not only an expense. 3PD's are an investment. An investment into a restaurants BRAND/Exposure. Example: tell me another platform where a single location mom and pop mexican restaurant could persuade a customer away from Chick-fil-A? A single location SMB having the opportunity to capture business from a 3,000+ unit QSR is extremely powerful. Do you think restaurants are calculating that value into their 3PD costs? I challenge restaurants to ask themselves this question; How important is your restaurants BRAND and how much are you investing into your BRAND on the daily? If a restaurant loses $1.00 on a 3PD order while taking a customer away from their competition and acquiring new volume is that a loss or a gain? The potential of gaining a new customer for life vs. never receiving an order at all. Customer acquisition cost of just $1.00? 3rd Party Delivery costs now all of sudden look pretty cheap. What are your thoughts?

Here are some highlights from our Q2 earnings: - Total revenues increased 17.3% to $216.3 million in Q2 2023 from $184.5 million in Q2 2022 - System-wide sales increased 17.4% to $271.5 million in Q2 2023 from $231.2 million in Q2 2022 - Restaurant level operating profit margin*** increased to 20.9% in Q2 2023 from 18.2% in Q2 2022 - Adjusted EBITDA*** increased to $25.8 million in Q2 2023 from $17.8 million in Q2 2022 The company’s continued strong commitment to employees, customers, and quality service, in and out of the restaurants, is what drives our impeccable performance and makes us stand out as the top in our class. With only 492 restaurants nationwide, we continue to make great strides in the industry.

Unlocking new potential in the restaurant industry is crucial in today's landscape. Discover the significance of "growth" now and in the future with insights from the latest Growth Report. #growth

Has food-tech become a battle of discounting? Over the last few years, we have witnessed the emergence of alternative restaurant services like Thrive Now, a restaurant management and discovery platform. It helps restaurants serve their customers directly at significantly lower commissions while also aiding their discovery. How was there space for such a platform to enter the industry in the first place? I believe it was the high commissions and deep discounting strategies adopted by incumbents that left restaurants dissatisfied and seeking for a better alternative. Have such direct ordering food-techs been effective in their endeavour? That, in my opinion, is yet to be seen. While such platforms saw significant traction during the pandemic, the post-pandemic scenario paints a different picture. Incumbents have brought an intrinsic change in consumers’ behaviour. Discounting, which used to be a privilege has now become a customer’s right. This poses a significant barrier to the emergence of any alternate player because any threat to incumbents will likely be faced with major retaliation. Do you think that the non-compliance of restaurants can reach a point where a real white space opportunity will emerge? #foodtech #restaurant #fooddelivery

Unlocking new potential in the restaurant industry is crucial in today's landscape. Discover the significance of "growth" now and in the future with insights from the latest Growth Report. #growth

The future of the quick-service industry will lean heavily on innovation and technology, especially within delivery. Nation's Restaurant News predicts new restaurant concepts tailored to delivery, given the 9.4% growth in space from 2021 to 2022. https://bit.ly/3Y3KwgY

Voosh, a data-driven restaurant analytics platform, has announced the launch of Dispute Manager, a new feature helping restaurants protect profits while leveraging the company's powerful analytics tools. 📈 "Our Dispute Manager is designed to revolutionize operations, providing restaurant operators with a robust tool to reduce lost profits due to food or beverage errors. Every restaurant owner knows the sting of seeing hard-earned profits lost to errors. With Dispute Manager, we're handing the power back to them." —Priyam Saraswat, Voosh CEO and Co-founder Check out the full press release, created and published with EZ Newswire. #PressRelease #ClientNews #B2BMarketing