Abhinav Kapur’s Post

We were live with Evergreens CEO Ian Courtnage talking about today's "value equation" for restaurants. In this 15 minute live stream we covered: - What is the "value equation?" - The labor, COGS, and P&L challenges Evergreens (and the broader industry) have faced over the last two years. - The long-term impacts of discounting and how to avoid the "slippery slope" - What levers brands can pull - outside of discounting - to mitigate the cost pressures of the past two years The upshot: know your value prop, know what makes you different, know why guests care, and hold fast to those as close as you can, regardless of the operational environment.

🥗 Did you know that for every $15 sweetgreen makes in revenue, the company loses approximately $2.56? Let’s break that down thanks to Sweetgreen’s Q1 2024 Report and this chart from Chartr. To make $15 in revenue, Sweetgreen only spends $4.15 on its product and packaging. However, the total operating expenses amount to $17.56, leading to a net loss. Here’s a closer look at where the money goes: 🥬 Food, Drinks, Packaging: $4.15 👷 Labor: $4.35 🏢 Occupancy: $1.37 🧾 Other Restaurant Operating Costs: $2.41 🗂️ General & Administrative Costs: $3.50 ⬇️ Depreciation: $1.56 📉 Other Overhead Operating Costs: $0.21 As Sweetgreen inches closer to profitability, it’s a fascinating reminder that more than just fresh ingredients go into producing their $15 salads. - 🔗 View the #Sweetgreen Q1 2024 Report: https://lnkd.in/eC8EdbZU

🌟 Exciting News Alert! 🌟 Wendy's Planning Surge Prices Based on Fluctuating Demand Did you hear about the latest innovation in pricing strategy? Wendy's is making headlines with their plan to implement surge pricing based on fluctuating demand. This move showcases the power of dynamic pricing in the fast-food industry. Check out the full article to learn more: https://lnkd.in/dW8uptNC #DynamicPricing #Innovation #Wendys #PricingStrategy

"Wendy’s CEO Kirk Tanner announced that the fast-food chain intended to embrace “#surgepricing,” raising the prices of a burger and a Frosty in line with customer demand...A quarter-century earlier, Coca-Cola’s CEO mused about equipping its vending machines with thermometers, and triggering them to raise the price of a soda on a hot day...Consulting firms like #SaucePricing promise automatic surge pricing at restaurants to boost revenues. A chain bowling alley called Bowlero charged $418.90 for two lanes one day last year. Surge pricing “will eventually be everywhere,” the Financial Times, that chronicler of modern #capitalism, said last September...As companies gather more data available on consumer preferences, the process of algorithmically adjusting prices rapidly based on supply and demand will get easier, affecting all sorts of goods and services we’ve grown to count on. " #Uber https://lnkd.in/e-vJdXJn

Now available on demand!! This week's WEBINAR "Maximizing Profitability With Inventory Strategies in a World of Razor-Thin Margins" discusses how private label, fresh food management and sustainability enable grocers to think strategically about the brand experiences they want to create and the loyalty they want to drive. WATCH in entirety:: https://ow.ly/M22n50Ro2xN #foodretail #grocery #supermarket Oracle

Unlock the secret to sustainable success in the beverage industry: Understanding your Cost of Goods Sold (COGs)! 🌟 in our latest article, we break down the critical steps every beverage brand needs to take to ensure financial health and drive growth. From raw materials to labor costs, know what impacts your bottom line and how to leverage this knowledge for strategic decisions. 💼🍺 #BeverageIndustry #FinancialManagement #BusinessGrowth

Interesting read about Wendy's considering surge (dynamic) pricing for their food. There are some companies that have successfully implemented surge pricing without negative pushback from their consumers. The concept of surge pricing allows for prices to be less expensive when not busy and more expensive when busy. Similar to parking, other industries are considering the benefits and drawbacks of surge pricing. However, after consumers caught wind of Wendy's long-term plans, they started a meme campaign that may have changed Wendy's mind. What are your thoughts about the fast food industry implementing this model? Read more about Wendy's test of surge pricing here: https://lnkd.in/e3zNK_tX #parkingmanagement #parkingsolutions #parkingtechnology

🌟 AriZona Beverage Co. Iced Tea Founder Commits to $0.99 Price 🌟 In an inspiring move, the founder of #Arizona #IcedTea, Don Vultaggio has declared that the iconic $0.99 price for their tea will never increase. Despite economic challenges, he stands firm on this commitment, explaining that they are successful, debt-free, and own everything outright. Why should people struggling to pay rent should have to pay more for their drink? and adds that perhaps it's his way of giving back. The lesson for #retailers is clear: it's tough out there. Inflation is skyrocketing, and simply raising prices (whether out of necessity or just because you can) isn't always the answer. Odds are, you won't end up winning. Just look at all the retail stores closing. You have to fight to stay in the game! Think Smart. What do you think about Arizona's approach? Share your thoughts below! 👇 Mike Fata Sam Berkovicz Irving Lerner 🥩Shlomo Luss #RetailSuccess #CustomerCommitment #Inflation #BusinessStrategy #ArizonaIcedTea #RetailLessons #EconomicChallenges #GivingBack #ConsumerTrust

This post has now generated over 150 engagements. Kudos to David Katz, who I dont know, for generating some real discussion. But as it relates to the YouTube video with comments from AriZona Beverage Co., I’m amazed at the knee jerk reactions from some folks. A few people in the comments have pointed out that they just keep the pre-price the same and charge retailers more. I’m not sure they are heroes if their plan is to squeeze customer margin. Others have indicated that this just applies to one item. There is also a larger point for companies as we head further into stagflation. Defying gravity is not a sustainable strategy. Refusal or inability to take price means the value of their product is falling in real terms. If you can’t move prices along even with inflation, then you’re done. Some may have the margins to avoid temporarily, but eventually the machines need replacing, the employees need raises and your brand needs innovation. Unless this company is becoming a non-profit, they must be able to raise prices in the long term. For the folks like the original YouTube poster comparing this to Costco Wholesale hot dog and rotisserie chicken, there is a big difference. Those are trip drivers for a company that has raised membership fees along with inflation and continued to work on the same margin percents. Meaning their penny profit is expanding with inflation too. Costco is best in class at value, and they are smart enough to do it sustainably.