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Market chaser with significant reliance on a long and outdated list of promotions (high-low pricing strategy)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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