BOSTON —Even as casual-dining chains heavily promote meal deals to lure recession-weary consumers, the average prices on the segment’s entrées, side dishes, desserts and bar beverages have actually jumped this year, according to a new study.
According to Intellaprice, a Boston-based consulting firm specializing in restaurant pricing, prices for side dishes and desserts jumped 8 percent and 7 percent, respectively, as prices for dinner entrées and bar drinks grew 2.2 percent and 1.7 percent, respectively. —Even as casual-dining chains heavily promote meal deals to lure recession-weary consumers, the average prices on the segment’s entrées, side dishes, desserts and bar beverages have actually jumped this year, according to a new study.
During the same period, appetizer prices fell 2 percent, and the cost for addons, such as cheese or extra proteins, declined 4 percent, helping to push the segment’s overall menu pricing down 0.6 percent, the study found. —Even as casual-dining chains heavily promote meal deals to lure recession-weary consumers, the average prices on the segment’s entrées, side dishes, desserts and bar beverages have actually jumped this year, according to a new study.
“What we’ve found this year…is that restaurants, knowing that their customers have become more price-sensitive, have tapered off on increasing menu prices,” said Leslie Kerr, president of Intellaprice. “Obviously, they still care about driving up their tickets, but they don’t want to be so blatant that people start to say they don’t want to eat out.” —Even as casual-dining chains heavily promote meal deals to lure recession-weary consumers, the average prices on the segment’s entrées, side dishes, desserts and bar beverages have actually jumped this year, according to a new study.
At the same time, she noted that while chains are making certain there are lower-priced deals available—a near necessity in today’s market, which is driven by consumer demand for reduced prices—they also are offering higher-price items to recoup costs. —Even as casual-dining chains heavily promote meal deals to lure recession-weary consumers, the average prices on the segment’s entrées, side dishes, desserts and bar beverages have actually jumped this year, according to a new study.
“[Operators] know it is a little more sensible to raise the price on dessert, something that is not going to be a marquee item to the customer,” Kerr said. “[Operators] are going to look at a burger or sandwich or steak and make sure those prices are palatable.” —Even as casual-dining chains heavily promote meal deals to lure recession-weary consumers, the average prices on the segment’s entrées, side dishes, desserts and bar beverages have actually jumped this year, according to a new study.
The study, the firm’s third annual, compared year-over-year menu pricing as of July at 14 casual-dining chains in 21 markets nationwide. Intellaprice would not identify the chains, but said it tracked nearly 2,900 beverages and 13,000 food prices for its survey. In 2008, the same study indicated that overall menu prices at casual dinnerhouses increased 2 percent and prices for bar beverages rose 5 percent from 2007. —Even as casual-dining chains heavily promote meal deals to lure recession-weary consumers, the average prices on the segment’s entrées, side dishes, desserts and bar beverages have actually jumped this year, according to a new study.
The survey also found that prices varied noticeably by market, with Atlanta boasting the most expensive dinner entrées at an average price of $14.75, outpacing prices in New York, Chicago and Los Angeles. New York, however, leads the pack in drink prices, followed by Washington, D.C. For example, a domestic beer costs on average $4.15 in New York and $4.13 in Washington, D.C. Oklahoma City, where a domestic beer costs $3.22 on average, offers the lowest-priced drinks, the survey found. —Even as casual-dining chains heavily promote meal deals to lure recession-weary consumers, the average prices on the segment’s entrées, side dishes, desserts and bar beverages have actually jumped this year, according to a new study.
The strategy of offering deals while raising other prices is an effective one, said Dennis Lombardi, executive vice president of food-service strategies for WD Partners, a consultancy based in Columbus, Ohio. —Even as casual-dining chains heavily promote meal deals to lure recession-weary consumers, the average prices on the segment’s entrées, side dishes, desserts and bar beverages have actually jumped this year, according to a new study.
“The attractive value of a $6.99 or $7.99 entrée may bring people into the restaurant, but once they’re sitting there their moods will dictate whether they get a cocktail or side dish, not the fact that the broccoli went from $1.25 to $1.50 an order,” he said. —Even as casual-dining chains heavily promote meal deals to lure recession-weary consumers, the average prices on the segment’s entrées, side dishes, desserts and bar beverages have actually jumped this year, according to a new study.
According to Rick Hendrie, vice president of marketing for Uno Chicago Grill, a 200-unit, Boston-based casual-dining chain, the segment’s appetizer prices have fallen because many chains have re-engineered those items to include less costly ingredients. —Even as casual-dining chains heavily promote meal deals to lure recession-weary consumers, the average prices on the segment’s entrées, side dishes, desserts and bar beverages have actually jumped this year, according to a new study.
Intellaprice’s Kerr noted that casual-dining chains have to be savvy in their pricing strategies, keeping an eye on margins even as they offer deals. —Even as casual-dining chains heavily promote meal deals to lure recession-weary consumers, the average prices on the segment’s entrées, side dishes, desserts and bar beverages have actually jumped this year, according to a new study.
“[Operators] have to be very strategic or else they would lose margin,” she said. “They have to keep the customers coming through the doors. That’s why they advertise their deals.” —Even as casual-dining chains heavily promote meal deals to lure recession-weary consumers, the average prices on the segment’s entrées, side dishes, desserts and bar beverages have actually jumped this year, according to a new study.
Hendrie said that Uno is using such a pricing strategy for its fall limited-time offerings. —Even as casual-dining chains heavily promote meal deals to lure recession-weary consumers, the average prices on the segment’s entrées, side dishes, desserts and bar beverages have actually jumped this year, according to a new study.
“We have 13 new items and only two of them are specifically priced at clear-cut value prices—$10,” he said. “Nevertheless, we’re finding that in every case, virtually each new item has been No. 1 in its category [in sales], so people are trying them and buying them again. And they’re not all price driven, that’s for sure.” —Even as casual-dining chains heavily promote meal deals to lure recession-weary consumers, the average prices on the segment’s entrées, side dishes, desserts and bar beverages have actually jumped this year, according to a new study.
At Margarita’s, a 19-unit Mexican dinnerhouse chain based in Portsmouth, N.H., prices on food and drink will remain the same as long as the environment necessitates that, said Bob Hoffmeister, president and chief operating officer. —Even as casual-dining chains heavily promote meal deals to lure recession-weary consumers, the average prices on the segment’s entrées, side dishes, desserts and bar beverages have actually jumped this year, according to a new study.
Instead of offering bundled meals, Margarita’s has developed a menu concept called Fiesta Zone, which features new items at prices ranging from $4.99 to $9.99 that are offered between the hours of 4 p.m. and 6 p.m. and then after 9 p.m. —Even as casual-dining chains heavily promote meal deals to lure recession-weary consumers, the average prices on the segment’s entrées, side dishes, desserts and bar beverages have actually jumped this year, according to a new study.
Hoffmeister added that the economy has not negatively affected his drink sales, which make up about 40 percent of the chain’s sales mix. —Even as casual-dining chains heavily promote meal deals to lure recession-weary consumers, the average prices on the segment’s entrées, side dishes, desserts and bar beverages have actually jumped this year, according to a new study.
“We do a very large beverage and bar business,” he said. “Those sales have more than offset any decrease we’ve had in the dining room. We probably could pass a price increase through on our hard beverages, but we’re not going to. It’s a matter of sensitivity.” —Even as casual-dining chains heavily promote meal deals to lure recession-weary consumers, the average prices on the segment’s entrées, side dishes, desserts and bar beverages have actually jumped this year, according to a new study.
Customers are not coming in to splurge…so maybe those extra fries won’t get ordered.—DENNIS RIESE, CHIEF EXECUTIVE, RIESE ORGANIZATION —Even as casual-dining chains heavily promote meal deals to lure recession-weary consumers, the average prices on the segment’s entrées, side dishes, desserts and bar beverages have actually jumped this year, according to a new study.
Dennis Riese, president and chief executive of the Riese Organization, a New York City-based multiunit operator of such chains as T.G.I. Friday’s and Charley O’s Bar & Grill, said value pricing is an important strategy to use during this down economy. —Even as casual-dining chains heavily promote meal deals to lure recession-weary consumers, the average prices on the segment’s entrées, side dishes, desserts and bar beverages have actually jumped this year, according to a new study.
“This is not the time to be raising prices, and if discounting can give the perception that it’s helping customers cope with this recession, it’s a win-win, definitely the right approach,” he said.— [email protected] —Even as casual-dining chains heavily promote meal deals to lure recession-weary consumers, the average prices on the segment’s entrées, side dishes, desserts and bar beverages have actually jumped this year, according to a new study.