Pricing Strategy

Our Services > Strategy > Pricing Strategy for a Restaurant Chain

Client Overview


    The client is a Dim Sum restaurant chain that provides both dine-in full service and takeaway services to mass-market customers. The food offerings primarily consist of Chinese Dim Sum cuisine and Chinese main dishes. The client wanted to devise and implement a robust and long term pricing strategy to increase revenues and profits without losing its loyal customer base. 

    Complications

    • The current pricing strategy of the restaurant was non-existent, and had to be formulated from scratch.
    • A lack in historical sales data that can be of use for customer behaviour analysis.
    • The end market of the restaurant (mass market, in particular, low to middle income customers) creates a limitation to the types of pricing strategies and changes that can be implemented.
    • The restaurant faces a strong degree of competition from other surrounding food & beverage competitors.

    How Embarkley & Company Has Helped

    • Embarkley conducted customer, market and competition research in regards to Hong Kong Dim Sum restaurant market pricing.
    • Embarkley analyzed company specific sales data and cost structure to develop a tailored pricing model for the restaurant’s products.
    • Embarkley articulated an appropriate 5 year pricing strategy with key milestones and KPIs to assess the pricing strategy development.
    • Embarkley implemented appropriate pricing strategies for the restaurant, coupled with change management to maintain existing customer base.

    Outcome

    • Embarkley helped the client implement a pricing mechanism to ensure its ongoing pricing measures are robust and dynamic.
    • Embarkley is expected to help increase revenue and profit of the restaurant by 14% and by 7%, respectively.
    • Embarkley will ensure the existing customer base is retained, and new customer numbers are predicted to increase by 8% through a crossover between innovative pricing strategies and marketing techniques.
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