The situation on the catering and entertainment markets is such that the dumping wars and the competition led to the state when the establishments of the same target group segment virtually have become equal in their pricing policies.
What do I mean by the prices in the target group segment? That is the literal example: one cannot compare the price for juice in a family café and at the night club. Approximately, that’s the way it is. The target group segmentation implies the distinct distinguishing of the target group itself as well as its pricing potential.
I have had such cases in my practice when we tried to surprise the Guests of a premium restaurant with good prices, for example, for sushi menu. But not all people understood that and the low price (let’s say, of the fast food level) was associated with bad quality. As a result, the sales were falling, but not rising. So, you need to be careful even with dumping.
Continue reading “Loyalty system for restaurants. What is better: discounts or bonuses?”
