There is a direct correlation between your operations and how people feel about your prices and the value they received. When Preferred Feedback compares the results of restaurants within the same brand, the restaurants with the highest guest satisfaction scores get very good ratings on both price and value. As a matter of fact, price and value fall well into the “green zone” (safe zone). Restaurants, from the same brand, with the lowest guest satisfaction scores get very poor ratings on both price and value and fall deep into the “red zone” (caution area).

Our experience… We had a restaurant that had a low guest satisfaction score (a little below 90%). The price and value ratings were very poor. A year and a half later, with new leadership, we had a guest satisfaction score above our minimum target of 94%. Our price and value ratings improved significantly and had moved into the green zone (safe zone). It just so happens that we had to implement a price increase within that year and a half period also.

The same restaurant…

higher prices…

better operations…

         … Price/value ratings moved from poor to very good!

PREFERRED POINTER

• You do not need to lower prices to improve your customer’s impression of your prices. Listen to what your customers are saying about their impression of your operation and focus on moving anything in the red zone to the green zone. You should see a significant improvement in the way your guests feel about your prices and the value they received.
• Need to implement a price increase? Make sure your operations are in line and you should be able to minimize any price resistance that you may encounter.
• Even if you are in a situation where customers are a bit price sensitive and your price ratings aren’t where you would like them, your good operations will cause those same guests to feel “Prices may be a bit high but I feel I received a good value!”.