RMS will offer recommendations for menu pricing, menu engineering, analysis of the impact of pricing changes, and advice for ongoing business strategies, all designed to match Fresh Brothers' pricing and offerings to consumer demand.
The Fresh Brothers relationship is an example of how up-and-coming restaurant chains can benefit from RMS' 20 years of experience in demand-based pricing and menu optimization strategies. RMS works with a variety of restaurant clients, including five of the top 10 largest restaurant companies in the U.S.
Battling increasing costs is an issue for restaurants across the country, and particularly in California, where the minimum wage is rising significantly. The minimum wage in Los Angeles, where Fresh Brothers is headquartered, recently increased 14 percent on July 1 for larger employers, from $10.50 to $12 an hour, and will increase to $15 an hour by 2020.
"It simply makes sense to work with the experts at RMS," said Tony Dellamano, Chief Financial Officer for Fresh Brothers, which has 19 locations in the Los Angeles, Orange County and San Diego. "As we grow, it's important to base decisions on deep knowledge of our customers' buying behaviors. With its patented methods for working with transactional data, RMS will help us continue making solid, fact-based decisions in the future."
Fresh Brothers, founded by Adam and Debbie Goldberg, plans to open five new locations this year, with a goal to hit 50 units in the next four years. The company focuses on using fresh ingredients, factoring in the needs of customers who want vegan or gluten-free options, and combining that with quality customer service. As Fresh Brothers gets larger, it doesn't want that growth to come at the expense of profitability, which is where RMS comes in.
"As an example of how RMS is helping us, we are taking a look at how we have had one size of salad – a really large salad – for nine years since the company's inception," Dellamano said. "Should we go to both a small and a large size? RMS is helping us determine the best course of action through customer testing and analysis. We would like to improve profitability on our salads, but not in a way that will turn customers off."
RMS consistently receives requests for assistance from smaller, successful restaurant companies, said Mark Kuperman, RMS' Chief Operating Officer. "The help we offer is based on our knowledge and experience of how to tie operational strategies to actual customer buying behavior," he said. "Given the current economic challenges all restaurant operators are facing, such assistance is needed now more than ever."
Adds Fresh Brothers' Dellamano: "Beyond labor costs and the cost of goods, operators have to worry about the impact of health care and workers comp insurance. It seems that major cost increases are going to continue to be a fact of life in the restaurant industry, so it's smart to be proactive in addressing those."
About Revenue Management Solutions:
Revenue Management Solutions, based in Tampa, Florida USA, is a leader in bringing a data-based approach to pricing and menu optimization for restaurants, providing solutions for a number of leading global restaurant brands, including many of the largest companies in the industry. Since 1994, the company has been successfully providing solutions to clients to increase profit and enhance brand value. RMS assists more than 50 major brands in more than 40 countries, with its patented processes of revenue management used in more than 90,000 locations globally.
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