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Pricing Your Menu & Working your Advantages
2015
Keeping up with what chain restaurants are doing around you will keep you up with the trends!
Advantages chains have over independents: • They can spend more on marketing • They can afford to spend on bigger spaces & in better locations • They can negotiate better prices on supplies • They instill brand recognition in consumers
Advantages independents have over chains: • Independent restaurants can get to know customers more intimately • Independent restaurants can offer a wider variety on the menu. • Independents can focus on quality.
2 PERSON MEAL DEALSKIDS SPECIALSLOW CALORIE OPTIONSGLOBAL FLAVORSETHNIC ENTRÉE SPECIALSAPP & ENTRÉE COMBOLATE NIGHT APP SPECIALSMINI DESSERTSSPECIALTY BEVERAGESFREE WI-FITOUCHSCREENSONLINE ORDERING CURBSIDE PICKUP
What areCHAINS OFFERING?
Food Item Appl
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Smok
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Outb
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Lone
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Buffa
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Long
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Joe's
Crab
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SOUP SOUP
Cup $3.19 $3.29 $4.79 $3.29 ‒‒ ‒‒ $3.99 $2.99 $4.29 $3.49 ‒‒ ‒‒ $3.89 $3.69 Cup
Bowl $3.49 $4.49 $5.79 $5.29 $3.99 $5.00 $4.99 ‒‒ $5.29 $4.49 ‒‒ $5.29 $5.69 $4.89 Bowl
APPS APPS
Hot Dip Appetizer $8.49 $8.19 $7.00 $7.00 $7.99 ‒‒ $8.59 ‒‒ $8.49 $7.99 $6.99 $9.49 $9.39 $8.15 Hot Dip Appetizer
Shrimp Appetizer $6.99 ‒‒ ‒‒ ‒‒ $8.99 ‒‒ ‒‒ $5.99 $9.29 ‒‒ ‒‒ $9.49 $9.49 $8.37 Shrimp Appetizer
Mozz Sticks $6.49 ‒‒ ‒‒ ‒‒ $6.99 $7.50 ‒‒ ‒‒ ‒‒ ‒‒ $6.59 ‒‒ $7.89 $7.09 Mozz Sticks
Onion Rings $6.49 $5.99 $9.00 $9.00 ‒‒ ‒‒ $6.99 $4.99 $7.99 ‒‒ $7.29 $7.79 ‒‒ $7.28 Onion Rings
Cheese Fries $5.99 $7.99 $7.00 $7.00 $6.59 ‒‒ $8.99 $6.99 $9.29 $8.49 $4.89 $5.99 ‒‒ $7.20 Cheese Fries
Nachos $8.69 $8.19 ‒‒ ‒‒ ‒‒ ‒‒ $9.99 ‒‒ ‒‒ $7.99 ‒‒ $10.79 $9.13 Nachos
Chicken Wings $9.99 $9.29 $9.00 $9.00 $9.99 ‒‒ $10.69 $7.99 $9.79 $10.99 $10.79 ‒‒ ‒‒ $9.75 Chicken Wings
Quesadilla $9.49 ‒‒ ‒‒ ‒‒ $7.99 ‒‒ ‒‒ ‒‒ $9.49 $8.99 $7.79 ‒‒ ‒‒ $8.75 Quesadilla
Sampler $11.99 $11.19 ‒‒ ‒‒ $11.99 ‒‒ $14.49 $9.99 $10.99 $10.99 $12.99 $10.99 $11.99 $11.76 Sampler
ENTRÉE SALADS ENTRÉE SALADS
Caesar Salad $9.99 $9.59 $9.49 ‒‒ ‒‒ $7.50 $11.49 $9.99 $10.99 $7.99 $8.49 $10.99 $8.99 $9.59 Caesar Salad
Chef/Cob Salad $9.49 ‒‒ ‒‒ $8.99 $8.99 ‒‒ $10.69 $9.99 ‒‒ ‒‒ ‒‒ ‒‒ ‒‒ $9.63 Chef/Cob Salad
Salad w Chicken $10.99 $9.99 $11.49 $8.99 $9.99 $10.50 $10.49 $9.99 $12.99 $11.49 $8.99 $12.99 $11.79 $10.82 Salad w Chicken
Salad w Seafood $10.29 $10.59 $12.49 ‒‒ ‒‒ $13.00 ‒‒ ‒‒ $12.99 $12.49 ‒‒ $11.99 $10.99 $11.85 Salad w Seafood
BURGERS/SANDWICHES BURGERS/SANDWICHES
Bacon/Cheese Burger $7.49 $8.38 $7.99 $8.99 $9.49 ‒‒ $9.49 $8.49 $9.99 $9.49 $8.99 $10.79 $10.39 $9.16 Bacon/Cheese Burger
Specialty Burger $10.49 $10.49 ‒‒ $10.49 $10.99 ‒‒ $10.99 $9.49 $10.99 $9.99 $10.29 $11.99 $10.39 $10.60 Specialty Burger
Chicken Sandwich $9.49 $8.99 $7.99 $9.99 $9.59 $7.00 $9.99 $8.99 $8.99 $9.99 $9.29 $11.49 $10.49 $9.41 Chicken Sandwich
Cheese Steak/Dip ‒‒ ‒‒ ‒‒ $8.99 ‒‒ ‒‒ ‒‒ ‒‒ $11.29 $10.49 ‒‒ $12.99 ‒‒ $10.94 Cheese Steak/Dip
ENTREES ENTREES
Filet Entrée ‒‒ ‒‒ ‒‒ ‒‒ ‒‒ ‒‒ ‒‒ $18.99 $23.49 $23.99 ‒‒ $19.49 ‒‒ $21.49 Filet Entrée
NY Strip ‒‒ ‒‒ $20.49 ‒‒ $18.99 ‒‒ ‒‒ $17.99 $22.79 $19.99 ‒‒ ‒‒ ‒‒ $20.05 NY Strip
Rib eye $17.99 $16.99 ‒‒ ‒‒ $18.99 ‒‒ $19.99 $16.99 $23.69 $19.99 ‒‒ $19.79 $20.49 $19.43 Rib eye
Beef Sirloin 7-10 oz $14.99 $16.29 $14.99 ‒‒ $15.59 $21.00 $16.49 $14.99 $18.79 $14.49 ‒‒ $11.99 $14.29 $15.81 Beef Sirloin 7-10 oz
1/2 Rack of Ribs ‒‒ $10.99 ‒‒ ‒‒ $14.99 ‒‒ $19.99 $12.99 $14.49 $15.99 ‒‒ $15.99 ‒‒ $15.06 1/2 Rack of Ribs
Full Rack of Ribs $17.69 $17.99 ‒‒ ‒‒ $19.99 ‒‒ $22.99 $18.99 $18.99 $19.99 ‒‒ $19.99 ‒‒ $19.58 Full Rack of Ribs
Salmon Entrée $13.99 $14.99 $16.99 ‒‒ $15.99 $18.00 $16.49 $13.99 $15.99 $16.99 ‒‒ $16.99 $17.79 $16.20 Salmon Entrée
Seafood Pasta $11.49 $12.49 ‒‒ ‒‒ $13.59 $18.00 ‒‒ ‒‒ $14.99 ‒‒ ‒‒ ‒‒ $14.89 $14.24 Seafood Pasta
Shrimp Entrée $12.89 ‒‒ $18.49 $12.29 $15.99 $15.50 ‒‒ $13.99 ‒‒ $15.99 ‒‒ $18.49 $15.29 $15.44 Shrimp Entrée
Chicken Pasta $11.99 $11.29 $14.99 ‒‒ $12.99 $13.00 $12.99 ‒‒ $14.99 ‒‒ ‒‒ ‒‒ ‒‒ $13.18 Chicken Pasta
SIDES SIDES
French Fries $2.99 $1.99 ‒‒ $2.99 $2.69 ‒‒ $2.09 $2.29 $2.99 ‒‒ $2.89 $2.99 $2.99 $2.69 French Fries
Side Salad $4.99 $3.99 $1.99 $1.99 $2.99 $3.00 $2.49 $3.99 $3.99 ‒‒ $4.29 $4.29 $3.29 $3.44 Side Salad
Baked Potato $2.99 ‒‒ $2.99 ‒‒ $2.69 ‒‒ $2.09 $2.29 $2.99 ‒‒ ‒‒ $2.99 ‒‒ $2.72 Baked Potato
Vegetable $1.99 $1.99 $2.25 $1.39 $2.69 ‒‒ $2.09 $2.29 $2.99 ‒‒ ‒‒ $2.99 $2.89 $2.36 Vegetable
KIDS MEAL KIDS MEAL
Grilled Cheese ‒‒ $4.99 ‒‒ $4.79 ‒‒ ‒‒ ‒‒ ‒‒ ‒‒ ‒‒ $4.49 ‒‒ ‒‒ $4.76 Grilled Cheese
Cheese Burger $4.49 $4.99 ‒‒ $4.79 $4.99 ‒‒ $5.99 $4.49 $5.39 ‒‒ $4.19 $5.49 ‒‒ $4.98 Cheese Burger
Chicken Tenders $4.49 $4.99 $5.75 $4.99 $4.99 $6.00 $5.99 $4.79 $5.29 ‒‒ $4.39 $5.49 ‒‒ $5.20 Chicken Tenders
DESSERT DESSERT
Cheese Cake $5.99 $6.29 $6.29 $5.99 $5.49 $5.00 $4.99 $5.99 $4.99 $6.99 $3.99 $6.99 ‒‒ $5.75 Cheese Cake
Brownie/Cookie Sundae $6.79 $6.99 ‒‒ $4.99 $4.99 ‒‒ ‒‒ ‒‒ $7.79 $6.49 $7.99 $6.49 $7.89 $6.71 Brownie/Cookie Sundae
Chocolate Cake $6.29 $6.79 $6.49 $5.99 $5.99 $5.00 $5.99 $5.99 ‒‒ $6.99 $4.99 $8.49 ‒‒ $6.27 Chocolate Cake
BEVERAGE BEVERAGE
Soda/Iced Tea $2.49 $2.99 $2.59 $2.79 $2.63 $2.00 $2.79 $2.49 $1.79 $2.49 $2.39 $2.69 $2.35 $2.50 Soda/Iced Tea
CHAINS VS. INDEPENDENTS
ADVANTAGE 1: Independent restaurants can get to know customers more intimately.Though corporate chains are increasingly trying to be more personal, this is one arena in which they cannot compete with independent restaurants. By making customers feel special, remembering their names or making them items that aren’t on the menu, small businesses can create a relationship with customers that corporate chains cannot.How to make the most of it: In addition to doing small things like remembering customers’ names, use the intimacy of your establishment to create direct marketing campaigns. Collect information from your customers, such as their birthdays, anniversaries, likes and dislikes. Use what you learn to cater to their tastes.
ADVANTAGE 2: Independent restaurants can offer a wider variety on the menu.Menu variety is another great way that independents can close the advantage gap. While big chains can offer limited time offers for short-term menu variety, they cannot do so on the same scale as small restaurants. Chain restaurants are bound to a corporate agenda and have to follow set menu and rules. Independent restaurants can change the menu daily, weekly or however often they see fit. This allows the independent operator to market a changing menu with LTOs catered to what their customers are looking for. How to make the most of it: It is not enough to simply offer variety; you need to get the word out. Update your Twitter and Facebook followers on your daily specials, and communicate through email marketing when your menu changes. Do research, use comment cards and find out what customers would like to see more of, and adjust your menu accordingly.
ADVANTAGE 3: Independent restaurants can focus on quality.Though some chains try to source local, organic and fresh ingredients, this feat is still best accomplished by independent restaurants. It is difficult for corporate entities to ensure the freshness of ingredients in each individual store. How to make the most of it: If you are going to provide quality ingredients, you need to get the word out to guests and potential guests. If you source local or organic ingredients, put this on the menu, as well as on other advertisements.
ADVANTAGE 4: Independent restaurants can band together. It is one of the best ways for independent restaurants to compete with chains. When independents work together, they can wield power comparable to the power of a corporation.How to make the most of it: Independent restaurants can pool together marketing resources in order to compare to the marketing power of chain restaurants. You can work to promote one another’s businesses by the simple act of handing out business cards in your establishment. Other independent restaurant groups have banded together to offer a discount card that can be used at a number of different local restaurants. Statements from: www.foodservicewarehouse.com
WORK YOUR ADVANTAGES
Food Item Appl
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Red
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Robi
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Smok
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Outb
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Lone
Star
Buffa
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Long
horn
Joe's
Crab
Shac
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SOUP SOUP
Cup $3.19 $3.29 $4.79 $3.29 ‒‒ ‒‒ $3.99 $2.99 $4.29 $3.49 ‒‒ ‒‒ $3.89 $3.69 Cup
Bowl $3.49 $4.49 $5.79 $5.29 $3.99 $5.00 $4.99 ‒‒ $5.29 $4.49 ‒‒ $5.29 $5.69 $4.89 Bowl
APPS APPS
Hot Dip Appetizer $8.49 $8.19 $7.00 $7.00 $7.99 ‒‒ $8.59 ‒‒ $8.49 $7.99 $6.99 $9.49 $9.39 $8.15 Hot Dip Appetizer
Shrimp Appetizer $6.99 ‒‒ ‒‒ ‒‒ $8.99 ‒‒ ‒‒ $5.99 $9.29 ‒‒ ‒‒ $9.49 $9.49 $8.37 Shrimp Appetizer
Mozz Sticks $6.49 ‒‒ ‒‒ ‒‒ $6.99 $7.50 ‒‒ ‒‒ ‒‒ ‒‒ $6.59 ‒‒ $7.89 $7.09 Mozz Sticks
Onion Rings $6.49 $5.99 $9.00 $9.00 ‒‒ ‒‒ $6.99 $4.99 $7.99 ‒‒ $7.29 $7.79 ‒‒ $7.28 Onion Rings
Cheese Fries $5.99 $7.99 $7.00 $7.00 $6.59 ‒‒ $8.99 $6.99 $9.29 $8.49 $4.89 $5.99 ‒‒ $7.20 Cheese Fries
Nachos $8.69 $8.19 ‒‒ ‒‒ ‒‒ ‒‒ $9.99 ‒‒ ‒‒ $7.99 ‒‒ $10.79 $9.13 Nachos
Chicken Wings $9.99 $9.29 $9.00 $9.00 $9.99 ‒‒ $10.69 $7.99 $9.79 $10.99 $10.79 ‒‒ ‒‒ $9.75 Chicken Wings
Quesadilla $9.49 ‒‒ ‒‒ ‒‒ $7.99 ‒‒ ‒‒ ‒‒ $9.49 $8.99 $7.79 ‒‒ ‒‒ $8.75 Quesadilla
Sampler $11.99 $11.19 ‒‒ ‒‒ $11.99 ‒‒ $14.49 $9.99 $10.99 $10.99 $12.99 $10.99 $11.99 $11.76 Sampler
ENTRÉE SALADS ENTRÉE SALADS
Caesar Salad $9.99 $9.59 $9.49 ‒‒ ‒‒ $7.50 $11.49 $9.99 $10.99 $7.99 $8.49 $10.99 $8.99 $9.59 Caesar Salad
Chef/Cob Salad $9.49 ‒‒ ‒‒ $8.99 $8.99 ‒‒ $10.69 $9.99 ‒‒ ‒‒ ‒‒ ‒‒ ‒‒ $9.63 Chef/Cob Salad
Salad w Chicken $10.99 $9.99 $11.49 $8.99 $9.99 $10.50 $10.49 $9.99 $12.99 $11.49 $8.99 $12.99 $11.79 $10.82 Salad w Chicken
Salad w Seafood $10.29 $10.59 $12.49 ‒‒ ‒‒ $13.00 ‒‒ ‒‒ $12.99 $12.49 ‒‒ $11.99 $10.99 $11.85 Salad w Seafood
BURGERS/SANDWICHES BURGERS/SANDWICHES
Bacon/Cheese Burger $7.49 $8.38 $7.99 $8.99 $9.49 ‒‒ $9.49 $8.49 $9.99 $9.49 $8.99 $10.79 $10.39 $9.16 Bacon/Cheese Burger
Specialty Burger $10.49 $10.49 ‒‒ $10.49 $10.99 ‒‒ $10.99 $9.49 $10.99 $9.99 $10.29 $11.99 $10.39 $10.60 Specialty Burger
Chicken Sandwich $9.49 $8.99 $7.99 $9.99 $9.59 $7.00 $9.99 $8.99 $8.99 $9.99 $9.29 $11.49 $10.49 $9.41 Chicken Sandwich
Cheese Steak/Dip ‒‒ ‒‒ ‒‒ $8.99 ‒‒ ‒‒ ‒‒ ‒‒ $11.29 $10.49 ‒‒ $12.99 ‒‒ $10.94 Cheese Steak/Dip
ENTREES ENTREES
Filet Entrée ‒‒ ‒‒ ‒‒ ‒‒ ‒‒ ‒‒ ‒‒ $18.99 $23.49 $23.99 ‒‒ $19.49 ‒‒ $21.49 Filet Entrée
NY Strip ‒‒ ‒‒ $20.49 ‒‒ $18.99 ‒‒ ‒‒ $17.99 $22.79 $19.99 ‒‒ ‒‒ ‒‒ $20.05 NY Strip
Rib eye $17.99 $16.99 ‒‒ ‒‒ $18.99 ‒‒ $19.99 $16.99 $23.69 $19.99 ‒‒ $19.79 $20.49 $19.43 Rib eye
Beef Sirloin 7-10 oz $14.99 $16.29 $14.99 ‒‒ $15.59 $21.00 $16.49 $14.99 $18.79 $14.49 ‒‒ $11.99 $14.29 $15.81 Beef Sirloin 7-10 oz
1/2 Rack of Ribs ‒‒ $10.99 ‒‒ ‒‒ $14.99 ‒‒ $19.99 $12.99 $14.49 $15.99 ‒‒ $15.99 ‒‒ $15.06 1/2 Rack of Ribs
Full Rack of Ribs $17.69 $17.99 ‒‒ ‒‒ $19.99 ‒‒ $22.99 $18.99 $18.99 $19.99 ‒‒ $19.99 ‒‒ $19.58 Full Rack of Ribs
Salmon Entrée $13.99 $14.99 $16.99 ‒‒ $15.99 $18.00 $16.49 $13.99 $15.99 $16.99 ‒‒ $16.99 $17.79 $16.20 Salmon Entrée
Seafood Pasta $11.49 $12.49 ‒‒ ‒‒ $13.59 $18.00 ‒‒ ‒‒ $14.99 ‒‒ ‒‒ ‒‒ $14.89 $14.24 Seafood Pasta
Shrimp Entrée $12.89 ‒‒ $18.49 $12.29 $15.99 $15.50 ‒‒ $13.99 ‒‒ $15.99 ‒‒ $18.49 $15.29 $15.44 Shrimp Entrée
Chicken Pasta $11.99 $11.29 $14.99 ‒‒ $12.99 $13.00 $12.99 ‒‒ $14.99 ‒‒ ‒‒ ‒‒ ‒‒ $13.18 Chicken Pasta
SIDES SIDES
French Fries $2.99 $1.99 ‒‒ $2.99 $2.69 ‒‒ $2.09 $2.29 $2.99 ‒‒ $2.89 $2.99 $2.99 $2.69 French Fries
Side Salad $4.99 $3.99 $1.99 $1.99 $2.99 $3.00 $2.49 $3.99 $3.99 ‒‒ $4.29 $4.29 $3.29 $3.44 Side Salad
Baked Potato $2.99 ‒‒ $2.99 ‒‒ $2.69 ‒‒ $2.09 $2.29 $2.99 ‒‒ ‒‒ $2.99 ‒‒ $2.72 Baked Potato
Vegetable $1.99 $1.99 $2.25 $1.39 $2.69 ‒‒ $2.09 $2.29 $2.99 ‒‒ ‒‒ $2.99 $2.89 $2.36 Vegetable
KIDS MEAL KIDS MEAL
Grilled Cheese ‒‒ $4.99 ‒‒ $4.79 ‒‒ ‒‒ ‒‒ ‒‒ ‒‒ ‒‒ $4.49 ‒‒ ‒‒ $4.76 Grilled Cheese
Cheese Burger $4.49 $4.99 ‒‒ $4.79 $4.99 ‒‒ $5.99 $4.49 $5.39 ‒‒ $4.19 $5.49 ‒‒ $4.98 Cheese Burger
Chicken Tenders $4.49 $4.99 $5.75 $4.99 $4.99 $6.00 $5.99 $4.79 $5.29 ‒‒ $4.39 $5.49 ‒‒ $5.20 Chicken Tenders
DESSERT DESSERT
Cheese Cake $5.99 $6.29 $6.29 $5.99 $5.49 $5.00 $4.99 $5.99 $4.99 $6.99 $3.99 $6.99 ‒‒ $5.75 Cheese Cake
Brownie/Cookie Sundae $6.79 $6.99 ‒‒ $4.99 $4.99 ‒‒ ‒‒ ‒‒ $7.79 $6.49 $7.99 $6.49 $7.89 $6.71 Brownie/Cookie Sundae
Chocolate Cake $6.29 $6.79 $6.49 $5.99 $5.99 $5.00 $5.99 $5.99 ‒‒ $6.99 $4.99 $8.49 ‒‒ $6.27 Chocolate Cake
BEVERAGE BEVERAGE
Soda/Iced Tea $2.49 $2.99 $2.59 $2.79 $2.63 $2.00 $2.79 $2.49 $1.79 $2.49 $2.39 $2.69 $2.35 $2.50 Soda/Iced Tea
FAST FOOD GOING UPSCALE Attaching the word “artisan” on menu items is one example. Domino’s is notorious for that, as it is for stunts like adding luxury ingredients like foie gras onto pizzas. McDonald’s and Wendy’s are both redesigning locations with a sleeker, more upscale look and feel. Taco Bell, meanwhile, has been trying to completely revamp its menu and vibe, which includes the national launch of “gourmet inspired” Cantina Bell items created through a partnership with Lorena Garcia, a chef who has been a part of reality shows such as “America’s Next Great Restaurant.”
MULTI-COURSE MEAL DEALS Lately several chains are promising to pack in value by offering a full meal with several courses, all for one low price. Olive Garden - $12.95 create-your-own deal that included soup or salad, a choice of entrees, and a mini-dessert. Outback Steakhouse - a three-course dinner featuring a 6 oz. steak for $11.99 Red Lobster- a four-course “Seafood Feast” for $14.99 T.G.I. Friday’s has a mini version meal deal, with one entrée and either an appetizer or dessert for $10.
STEALING THE COMPETITION’S PLAYBOOK Restaurants want to challenge the competition directly, and they do so by mimicking their counterparts’ menu. Pizza Hut, for instance, recently began encroaching on the turf of Subway and Quiznos with a lineup of hot P’zolo sandwiches. Subway has apparently been testing a new Doritos nachos menu item, akin to something you’d expect at Taco Bell. McDonald’s has been selling pastries in certain locations, apparently in an attempt to steal business away from Dunkin’ Donuts.
HOT SANDWICHES The growth of sandwich shop chains, as well as sandwich items on chain restaurant menus is hot. The most recent Sandwich Consumer Trend Report from the research firm Technomic shows that 49% of consumers now purchase their sandwiches away from home, compared to 44% two years ago.
FREE WI-FI AS A DRAW—AND THE STANDARD Eight years ago, Panera Bread did something that was unusual at the time: It started offering free Wi-Fi to all customers. Some independent coffee shops and restaurants had free Wi-Fi then, but national chains including Starbucks charged for Wi-Fi then. As USA Today reports, the move by Panera Bread paid off right away, with sales increasing 15%. The move also started a trend, as Starbucks, McDonald’s, and others now offer free Wi-Fi. Panera’s latest challenge is that its service may be becoming too popular. Free Wi-Fi has become even more of a draw in recent years as wireless carriers have begun getting rid of unlimited data plans.
TOUCHSCREENSmall interactive computer screens have been popping up on the tables of restaurants such as Chili’s and Applebee’s. They have entertainment features, allowing diners—or their kids—to play video games and watch movie trailers. But restaurants may be most interested in these screens because they help sell food and drinks. At The Smashburger, digital menu boards placed at cash registers have proven successful in getting customers to add on extras like milkshakes and fries. The Wall Street Journal reports that dessert orders rise 30% after screens displaying the desserts are installed at restaurants.
What’s Hot In Chain Trends