Data is for Winners
Big data could easily go by another name: competitive advantage. It’s a widely accepted truth that companies who take the time to collect and interpret market data hold a handsome competitive advantage over companies who don’t. And companies who don’t use data to inform their business practices run the risk of dating themselves because in today’s world to make any business decision based off of intuition is a bit like insisting on traveling by horse despite having a nice sedan parked in your garage. But we understand that the concept of big data can seem abstract and the benefits of implementing it even more so. To that end, Food Genius put together the following list of big-data derived capabilities. In this situation, the data we are referring to is competitive pricing data which is the prices of menu items at nearly half of the top 100 chain restaurants across the country.
Pricing Data As Competitive Intelligence
Everyone in the foodservice industry wants to know what their competitors have up their sleeves. Information on competitors’ new products and pricing is sought after because it helps companies determine their own course of action. But up until recently, this data has been hard to acquire. Now thanks to the proliferation of online menus, a massive amount of competitor pricing data is easier than ever to access and interpret. With this valuable data set in hand, companies can do the following three things.
1. Gut Check Prices
How do you currently set your prices? A cost-plus approach to pricing doesn’t consider the competitor, only your own costs. And without a concrete understanding of how the other restaurants in your market price similar items, how can you feel confident in the price you set? What if your double cheeseburger costs a whopping 25 cents more than the double cheeseburger at the joint down the street? Operators can use competitive pricing data to ensure that their own prices are within the market’s normal bell curve of similar items.
2. Identify Outliers And Adjust Accordingly
Various suppliers and fluctuating food costs means the chances of having a few prices that skew either below or above the market averages are high. By observing the prices of menu items across the market, operators can identify which of their prices do not align with market norms and adjust accordingly. And in doing so, they ensure that a valuable share of stomach doesn’t take their businessto the cheaper restaurant across the street.
3. Eliminate Field Collection
To be sure, some operators fully comprehend the value of competitor pricing data. Still though they lack the ability to access it at scale. Often times they resort to deploying expensive field teams that can only capture pricing data at a few locations and for a hefty fee. Having to manage these teams is exhausting and makes it harder to focus on the data itself. But there is a better way. As we mentioned before, thanks to the proliferation of online menus, high quality and affordable competitive pricing datas is now a reality ready to be taken advantage of by tech-savvy operators.
To reap the above benefits of quality competitive pricing data, contact Food Genius today.