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Case Studies

Pricing & Promotion

Getting pricing strategy right may be the most challenging task for restaurant organizations — wrong decisions can cause guests to trade down to lower-priced items, or lost traffic. Similarly, failing to take price where it’s available can leave millions of dollars of profit on the table. 

APT’s Menu Analyzer software helps restaurants identify potential pricing and promotion opportunities. APT’s Test & Learn™ software determines the true incremental impact of price changes on KPIs. Leveraging learnings from an ongoing testing process can help restaurants optimize their pricing strategy for each menu item, restaurant, and market.

Example pricing & promotions questions addressed by APT’s software suite include:

  • What is the true incremental impact of raising the price of each menu item? How does price elasticity vary by location?
  • Which items are ideal candidates for promotion?
  • What is the implied cost of a given promotion? What promotion types will increase the number of guest visits or average check size without subsidizing existing guest behavior?

Watch our featured videos

  • Pricing Optimization

    Pricing Optimization
  • The Promotional Cone of Uncertainty: Redemption Rate vs. Incrementality

    The Promotional Cone of Uncertainty: Redemption Rate vs. Incrementality
  • Capital Expenditures

    Capital Expenditures
  • Menu Innovation

    Menu Innovation
  • Common Mistakes in Pricing

    Common Mistakes in Pricing
  • Competing with Fast Casual

    Competing with Fast Casual
  • APT's Software Suite

    APT's Software Suite
  • The APT Index

    The APT Index
  • Effectively Using Customer Data

    Effectively Using Customer Data
  • Using Test & Learn in a Franchised Environment

    Using Test & Learn in a Franchised Environment

"Some people think that Test and Learn™ is nerdy and a lot of analysis. I think it's just the opposite. It helps us to be maximally creative and risk taking. We can test any exciting but risky idea before we roll it out and rapidly roll out the ones that work. With APT we were able to very rapidly develop a capability that otherwise would take years to create in-house; in addition APT's solution provided consistent, standardized results allowing us to innovate quickly and with confidence."

- President and CEO of the SUBWAY Franchisee Advertising Fund Trust (SFAFT)