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The Greek Philosopher Heraclitus once said that the only constant in life is change. It’s true that change is constant, specifically in QSR. Changes in QSR come in the form of menu updates and swaps, price increase, promotions, and more. Promotions specifically are more common in QSR, at least they should be. Limited Time Offers drive sales, build awareness, and win customer loyalty. However, some promotions may result in totally unexpected and negative outcomes. Can you do something about it? Yes, you can stop it immediately, not go back to the same promotion again in the future, and generally contain the situation. For this, as soon as promotions are applied, customers' feedback needs to be measured, sales performances reviewed, and the percentage of these promotions in the overall product mix examined. In this article, we will discuss how can you as an operator measure and analyze your promotion.
Using promotions is a very common marketing move. In QSR, there are various promotions that can be applied like discounted meals, offering a limited time dish, a free dessert, points programs, and more. Developing regular promotions is essential to drive sales, build awareness, and win customer loyalty as we said earlier. Menu innovation and creativity is key and time to put a successful LTO together takes time. All levels of a brand are involved from the marketing to finance and operation and usually it could take 6months to one year before having the LTO comes out. With good marketing support and high-quality employee training, nothing can stand in the way of successful LTOs.
Why is it important to analyze promotion in QSR? Getting customers to come in and try our food is one of our main aim at YYT Food Corp. By using promotional strategies, we can make customers interested in our restaurants. Regular changes in your menu are highly recommended and can be good for the business if the offer is smart and efficient. When executed correctly these promotions can build customer loyalty by creating nostalgia, boost brand excitement, increase footfall and most importantly, drive sales up. Analyze the promotion and measure the feedback is one of the most important thing every manager has to do after the launch. Gathering data, analyzing it to understand your customers help you emphasize, adapt or drop promotions. It also helps you to know if your marketing and operation budget has been spent wisely and predict future learnings. At YYT Food Corp, we are working on 3 to 4 LTO campaigns per year for each brand. These LTO can be linked to seasonality or calendar events and last between 5 to 8 weeks. All LTO are promoted on all channels including delivery platforms.
How can you analyze the promotion in QSR?
The question now is; how can you analyze the promotion in QSR? The first thing that you can do is to put yourself in your customer’s shoes and look at results from their point of view. Guest check is one way to look at things; you can examine how often customers buy an item and what drives them away from another. But, you have to be careful when using this method. Guest check is way more complicated than it seems. Think about it, not every customer that goes into the restaurant order the same menu item every single time. How about the customers who kept buying that specific menu item and eliminated the complementary ones? To do this right, operators must examine every guest check from every restaurant every day and review the product mix sales compare before the LTO launch. Guest check is a great way to listen to your customers. That is why you should handle it carefully. Another way to analyze the promotion in QSR is to take a look at the whole picture, not just sales. Yes, money is a major indicator but, sometimes a promotion takes time before you get the true reactions of the customers. That’s why our advice is to always strive for the big picture. There is no shorter route when it comes to analyzing promotion in QSR. Every little detail matters. That is why you should not try to simplify the process by looking at summarized data and average numbers. To reach logical assumptions and make reliable decisions, managers should invest time and energy. These are only three of the many ways that you could try to understand your customers, how they think, and what they think of your promotion.
Change is natural Having new items in your menu, update prices or try new promotions is definitely part of a good marketing mix and encourage people to come back. Change is part of life. Remember that worst comes to worst, you can roll back the change you made. What really matters is to always be in contact with your customers.