James Mason’s Post

What a fantastic way to lose customers! Surge pricing added to your burger or potato price during peak times? And, when inflation is impacting the average The Wendy's Company customer probably a lot. This isn’t a limited resource like how many Uber drivers are available at midnight on NYE. It’s also more of a readily available substitute commodity purchase when you can drive across the street to McDonald's or Burger King The surge pricing will reduce repeat customer visits and encourage people to go across the street. Did you do research on this topic?

The excitement for Applebee's classic $1 margaritas and 50 cent wings appears to have dried up, with sales at the chain falling 5.9% - their sixth consecutive quarterly decline. Applebee's has responded to the increasing challenges of the fast-casual dining space by doubling down on providing customers with more consistent value, replacing their temporary meal offers. I shared my insights with the Daily Mail on why the failure, or success, of these types of promotions can have significant financial implications for a company. In particular, Red Lobster’s "Endless Shrimp" promotion comes to mind, given the decision to make the all-you-can-eat deal permanent ultimately cost the company $11m. The stakes for Applebee's new promotions are high, as they join fellow rivals Chilis and Popeyes in attempting to win back customers, against the backdrop of financial headwinds facing the restaurant industry. Read the full article here: https://lnkd.in/gbBsYmmu

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Oh this isn’t going to go over well. Unlike the ride share or even the food delivery service apps (that are referenced as a model to follow in this article), consumers have nearly limitless CHOICE when it comes to restaurants. And they will vote with their wallets, regardless of the loyalty operators believe they’ve built over the years. Consumers continue to be sensitive to food prices as a top driver for purchase decisions, and really don’t care if there are legitimate economic reasons for them. Intentional, revenue-driving surge pricing on menus? Watch this space.

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Apparently I didn't have enough reasons to stop ordering take-out. Just saying the words "customer savings" doesn't actually mean anything when you can arbitrarily change the prices of your offerings on a whim. I expect to see a massive restructuring of the team in charge of this decision, and if not, I expect demand to tank. If I'm wrong, and this revolutionizes fast food, great for them and I'll need to hit the books on the 4P's again. But all I see is consumer frustration at a tone-deaf response to an ever increasing cost of living from a corporation that is not losing money. My basis for my criticism is the understanding that fast food is prioritized because of predictability of service, quality, and price. We begrudgingly accept rideshare "surge" pricing due to the perception of a limited amount of available drivers. You don't really want your customers to hold their nose when they buy from you, ESPECIALLY WHEN YOU SELL FOOD.

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Shrinkflation vs Moreflation 🤔 🤔 🤔 Domino's gets it right. More is better. Give consumers more value, and they have a reason to come back. Give them less, and it gets harder to justify. https://lnkd.in/g6muBtP4 It's true for pizza. It's true for chips. And many other examples. Start giving your consumer more, not less. #InsightPack https://lnkd.in/ge8TgCMw

There’s a new $5 meal deal on the block—but this one doesn’t involve a cutesy jingle or a footlong sandwich. McDonald’s rolls out its new value offering today, aiming to lure back cost-conscious customers who turned away from the chain amid increasing prices. The deal includes four items—a McChicken or McDouble, four-piece nuggets, small fries, and a small drink—but will only be available for a month. Why is Mickey D’s doing this? People aren’t flocking to the Golden Arches like they used to. McDonald’s missed sales expectations in Q1. It’s also battling a perception fueled by viral social media posts that the once-reliably affordable chain has gotten too expensive. McDonald’s is hoping the $5 meal deal will bring back customers. Coca-Cola contributed $4.6 million to subsidize the promotion after some franchisees said it would eat into their profits. Racing to the lowest price: McDonald’s may be the largest fast-food chain by sales volume, but it has competition tougher than a day-old fry. Last month, shortly after Bloomberg reported the chain’s intentions to bring out the deal, Burger King debuted its own $5 meal deal, Wendy’s dropped a $3 meal deal, and Starbucks jumped in with a $5 coffee and pastry combo.

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