Revenue Management Solutions Introduces Conjoint Analysis Solution Restaurant operators go to market more profitably with realistic trade-off scenarios, customer decision-making insights
TAMPA, Fla.
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November 13, 2023 07:15 AM Eastern Standard Time
A tailored Conjoint Analysis solution from restaurant data leader Revenue Management Solutions is now available worldwide to restaurant operators developing new markets, menus and products in an increasingly complex environment.
A pioneering name in pricing for nearly 30 years, RMS recognizes that restaurants need new solutions to revolutionize their competitive strategies and drive profitability. Its Conjoint Analysis, previously available only to clients for special projects, presents selected participants with realistic item trade-off scenarios so brands can gain insights into factors impacting purchasing decisions and price sensitivity. Restaurants use the data to shape future pricing decisions, product development and menu designs without risking “real-world” traffic loss.
“As brands prepare to make critical business decisions in 2024, we stand as a partner, relying on our research acumen and industry expertise,” said RMS Chief Research & Development Officer Sebastian Fernandez. “Using new technologies, our experienced statisticians tailor each conjoint study to meet client needs, so the results are relevant and lead to profitability.”
Operators can choose between two conjoint study techniques.
- Choice-based studies replicate real-life purchasing behavior and outcomes, providing valuable pricing and product strategies.
- The more complex menu-based studies mimic restaurant ordering behavior. Participants build combinations of items from a full menu so brands can optimize menu and price, forecast revenue and uncover sales opportunities.
Conjoint Analysis at Work
To illustrate the power of choice-based conjoint studies, RMS surveyed more than 3,000 US quick-service restaurant (QSR) diners to understand item-specific value. Respondents weighed in on chicken sandwiches, nuggets and bone-in chicken at popular brands, including Chick-fil-A, Popeyes, KFC, McDonald’s, Burger King, Wendy’s, Wingstop and Jack in the Box.
The results uncovered:
- How QSR brands stack up across different chicken offerings
- Which brands are favored by different generations, regions and households
- How price sensitivity affects the most popular choices and what brands are most vulnerable to trade down
“Conjoint analysis, in tandem with RMS’ pricing expertise, reveals a window into future consumer behavior,” said Fernandez. “Our in-depth chicken market study underscores the powerful value of these insights for restaurant brands looking to better understand their customer preferences and pricing strategies.”
Contact RMS today to learn how conjoint analysis can benefit your restaurant.
About Revenue Management Solutions
For over 25 years, Revenue Management Solutions (RMS) has partnered with restaurant brands to deliver actionable insights and data-driven solutions to boost sales, streamline costs and maximize profitability. Today, RMS is trusted by more than 50 major brands in 40+ countries. The company provides actionable insights to 100,000+ restaurant locations worldwide, helping them make informed business decisions that drive profitability, even in the face of challenges like inflation and rising labor costs. RMS holds five U.S. patents on menu pricing and customer segmentation and supports ongoing academic research efforts. To learn more about how RMS supports its clients, visit www.revenuemanage.com.
Contact Details
Tracy Henderson
+1 720-989-3530
tracy@centerreachcommunication.com
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