At QSRs, they call it a “value meal”: a group of items bundled at a lower price than the price paid for buying each item separately.
That whole concept messes with your head—because it defines value as price, and nothing could be further than the truth with the restaurants I work with.
With my clients in full-service and fast casual, our guests define value as “more than worth it,” whether that’s with a PPA of $15, $30, $55, $90, or $125.
We are dealing with a post-inflationary realignment with diners, which could not be clearly seen until recently because we were stuck in the haze of economic difficulty.
Middle- and upper-income people have no problem spending money for great experiences.
When their server passes over the handheld to settle payment, they think “I just spent X. What did I receive in return?”
The 3 Biggest Permanent Consumer Changes
- Rising consumer confidence benefits other segments of the economy more than ours.
- Guests like to eat your food at home even after it travels there.
- Customers have a new idea of what value means, and it has very little to do with price.
Over the past two weeks, I have told you about the first two changes. This week, I will tell you about the third.
Spoiler alert: Operators who improve offerings, service, environment, branding, and guest recognition win.
My clients:
- Boost education and culture to provide superior service.
- Redefine the level of hospitality offered.
- Invest in remodels and facilities to make sure they offer top quality.
- Revamp and update menus, plate ware, presentation, and drink menus.
- Focus on guest recognition through everything from loyalty to manager table visits.
If you sell on price, you’re on a path toward brand deterioration. Witness how quickly Starbucks began offering their own value bundle—and how quickly they stopped when it backfired.
The economy continues to improve, and in many cases, revenue has not. This tells us our guests could be happier if we provided better experiences.
Stop complaining about what you cannot control (the economy) and start working on improving the experience of dining in your restaurants.
Take action so your guests feel they have great value at whatever price you charge.
You must have a game plan to improve the experience in your restaurant and make that a big part of your 2025 plan.
