Case Studies

National Home Delivery Restaurant Chain

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Case Studies

National Home Delivery Restaurant Chain

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A well-known national home-delivery restaurant chain with over 450 outlets in the UK.

Optimising price structure and discount strategy to generate +2.5% margin uplift, whilst testing consumer appetite for pricing model overhaul

£ 4.2 m

Recommended new pricing structure results in £4.2m of incremental margin

£ 1.1 m

Recommended promotional strategy results in £1.1m of incremental margin

Challenge

  • Market chaser with significant reliance on a long and outdated list of promotions (high-low pricing strategy)
  • Recent decline in volume after Covid19 period has resulted in lots of recent ad-hoc price increases, resulting in a sub-optimal pricing structure
  • Franchisee ownership required non-corporate members to be part of discussions to ensure maximum buy in

Outcomes

  • New price structure defined, using assessed price potentials to optimise price points within their current structure
  • Promotion scoring to assess optimal promotional strategy, defining which promotions to streamline, and timelines for the remaining to maximise effectiveness

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