Shoney's Menu

We are in an economic environment where the belts continue to tighten and consumer spending is still small. The companies believe they have to take drastic measures to create cash flow and keep customers walking through their doors and these campaigns can be a success or failure of the company. The mistake they make is confusing the need to be competitive and offer a product they sell below a reasonable price.

The race to market concepts QuickServe (Metro) in the delivery of a $ 5 meal is being replicated by the casual market with serious effects. These restaurants are casual forget that each food and restaurant has their own brand, its own population and his own unique style that makes the brand.

Regarding restaurants offering "great deals, places us in the consultation expressed concern that lower prices or offering 'great deals' is not the panacea that sites need. Here's why .. .

5 reasons why your casual restaurant should not make $ 5 Specials QuickServe ...

1. These offers are rarely the level of new business expected
2. The restaurant is often lost due to the loss of these reductions lead over a long period of time
3. Returning to a price that does make sense for the company may be very unpopular because customers become accustomed to these "new price.
4. If a restaurant charges $ 5 for a meal for six months, this place has now set a new benchmark for his client. Your client is now expected to reach an agreement is not far off when this deal price is no longer available.
5. The customer is not necessarily true, because it was likely that the price and not offer that this customer through the door.

In short, the purpose of this option when Quickserve replicated by the casual market, whatever permeation, is often lost as you will soon know when you read the case studies below.

How Quickserve options TGI Friday and benefit cash flow Equals term disaster longer

TGI Friday's has recently issued a statement expressing the promotion was an opportunity to give clients the exposure of their new salads, as opposed to a move to compete with Quickserve industry observers, but few believed the statement. With their $ 5 entry was an attempt to compete with Subway, but it does not generate the results expected by management or the market. Instead, the supply has lowered the average cost per voucher spectacular.

Moreover, they mark irreparable damage. As a consultant restaurant has been featured on CNN, ABC and in newspapers and publications such as Los Angeles Times QSR Magazine, I would argue that they dilute the "sit down family restaurant" concept they have created. Their attempt to enter the market for $ 5 Quickserve has the same characteristics of a corporation that has an urgency to create serious cash flow, without considering the long-term effect on the company. As CEO David Davoudpour Shoney said: "5 million meals will not work in a casual meal, (he says ...) If you sell for $ 5 you need to sell for $ 10, something is wrong "

How Marie Callender's is the destruction of their brands and become synonymous with discount

Marie Callender's has recently announced a "kids eat free" promotion twice a week for meals for children per adult dish ordered. A family of four can eat for $ 16 now if the order of meals adult 7 $ 99 combo. This is in addition to many other reductions of this chain offers casual dining, including lunch $ 18 two courses. The problem with this promotion is, again, a sharp reduction will catch up to chain which is becoming synonymous with DIS only.