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Optimizing Remodels: A Restaurant Case Study

The Company

A leading national restaurant company

The Challenge

The restaurant chain planned to remodel its older locations, and wanted to determine the impact of this considerable investment before rolling out the program nationwide. The chain’s previous experience with testing, however, led to inconclusive results.

The Solution

Management turned to APT’s Test & Learn™ software to ensure that their testing would produce statistically significant results. Test & Learn™ helped the client modify their group of test sites to represent an average group of restaurant locations. Then, by leveraging the company’s sales data, Test & Learn™ identified the profitability of each aspect of the remodel. Using this data, management eliminated the least profitable components of the remodel program, while making sure to retain those that generated the greatest return. APT’s predictive analytics were able to significantly reduce the cost of each store remodel, while maintaining the lift in sales associated with the program.

The Results

Management’s use of Test & Learn™ to target their remodel strategy allowed them to reduce their rollout costs by nearly half. This tailored remodel program improved NPV by $20MM.
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