Restaurant Revenue Management
Maximizing Restaurant Profits
What Is Pricing and Why Is It So Important?
In simple terms, pricing is a group of activities by which a company determines what its customers will pay for its products and services offered. But if you do not think pricing is a critical component of your business that requires unique concepts, practices, and tools, then you will miss out on its tremendous power to increase your bottom line. Improving pricing is, in fact, one of the most strategic and powerful ways for you to improve your business and financial performance. According to a Garter Research report, on average a 1 percent improvement in price translated to an 11 percent increase in profitability.
Increasing Profits & Guest Counts
Pricing for Optimal Profit, without sacrificing transactions or customer traffic grounded in state-of-the-art databases and statistics, IRHC Group uses an analytical process that enables us to identify menu prices that yield optimal gross profit without negatively impacting customer traffic. IRHC Group consultants use sophisticated statistical inference to analyze demand patterns and elasticity, and to determine specific trading relationships between products.
It is a revolutionary and quantitative approach to pricing that enables you to uniquely manage the long-term brand value on a granular level – by letting the consumer set the right price. Price strategies are developed with a blend of consumer needs and business rules and conditions that drive brand strategy and financial plans.
IRHC Group consulting teams use the insights gleaned through this analytical process to develop demand-based pricing strategies that are brand-specific, actionable and highly effective whether on a market, tier or store level.
IRHC Group offers the most comprehensive Restaurant Revenue Management System in the Industry. We utilize our experience of over 30 years to evaluate and create a multifaceted restaurant revenue management system, which includes, but is not limited to, the following:
- Menu Development and Design: Based upon concept design, consumer preference revenue and profit maximization.
- Recipe Development: To maximize Return to Net (RTN) profits and increase speed of service standards.
- Menu Item Placement: A scientific approach to help influence consumers spending habits that maximizes revenue and profits.
- Price Evaluation Systems: A comprehensive evaluation of your menu pricing to ensure maximum profit without jeopardizing guest counts or customer traffic. IRHC Group clients experience on average gross profit gains of 2 percent of sales without deterioration of transactions, customer traffic or perceived value. Nobody can compare to us and we guarantee it.
We have helped many of our clients increase revenue and flow through additional profit without jeopardizing the guest experience. IRHC Group Restaurant Revenue Management Systems has helped many organizations raise millions of incremental revenues.