Brian Peice’s Post

The transition from skepticism about using credit cards at fast-food chains in 1993 to their dominance in today's retail transactions highlights the incredible pace of change in consumer behavior and technology. This evolution reflects the adaptability of societies and the continuous transformation of our financial practices. #ConsumerBehavior #TechnologyEvolution #FinancialAdaptation #RetailTransformation #SocietalChange

How should businesses leverage dynamic pricing models to maximize revenue without given their customers the sense they are being exploited? #supplyanddemand #dynamicpricing #revenuemanagement #wsj #inflation #prices Restaurants like San Diego-based Cali BBQ are experimenting with a form of the dynamic pricing long used by airlines, hotels and ride-hailing services. Technology providers are pitching services that enable restaurants to change prices weekly or monthly, increasing or slashing the cost of a taco or sandwich between a few quarters to several dollars, depending on demand and sales patterns. The small changes can add up for restaurants seeking more sales, though operators must weigh the potential gains with the risk of upsetting inflation-weary consumers. Shawn Walchef, Cali BBQ’s owner, said that variable pricing attached online to the pulled-pork sandwich boosted the four-unit chain’s $30,000 in monthly delivery sales by $1,500 since the company began testing it in early 2023. https://lnkd.in/eri_KFdG

Heard this described on the Acquired podcast Visa episode, but interesting to see all the different reactions. The lady describing it as sad if you need to put a burger on a credit card, and the chap talking about the rewards on his GM card buying him a truck The value proposition in the US is fundamentally different to the UK and EU because of different regulations, but what this shows is that while there can always be cultural perceptions to new tech, if the value proposition is there then it will always win out. The Visa and Mastercard case is particularly interesting because of how that value is spread and how long people have been happy with the status quo with little room for disruption, but I learned a huge amount from the pod There is probably more to be said on why we as people like rewards more than cheaper products, but that’s a different topic of conversation entirely. It’s interesting to see people comparing Crypto now to the beginning of electronic credit networks, but this to me feels very much like hope in the face of reason and a lack of understanding of the problem that credit cards were solving that Ben & David describe so well on the pod I’ve been doing some reading on the culture around pace of change and ‘failing fast’, but often failure is relative depending on your perspective, as we are moving increasingly in to the age of cashless, imagine telling that to these people

This is fascinating! Here's how people in 1993 reacted to credit cards being accepted at Burger King 😳 In 1993, using credit cards at a fast food restaurant was socially frowned upon. Today, credit cards make up over ~82% of all retail transactions in the US. Unbelievable how fast the world moves. P.S. check out 🔔linas.substack.com🔔, it's the only newsletter you need for all things when Finance meets Technology. For founders, builders, and leaders.

Discover the story behind Red Lobster's Chapter 11 bankruptcy filing. Read our detailed analysis here: https://lnkd.in/gHM7rk4v Key Points: - Initial Success: Red Lobster, founded in 1968, quickly became a popular seafood chain with over 1,400 locations by 2006, thanks to its accessible take on seafood and strong customer loyalty. - Challenges: The 2008 economic downturn, rising seafood costs, and shifting consumer preferences towards health-conscious dining options impacted the chain's profitability. - Bankruptcy Filing: In May 2024, Red Lobster filed for Chapter 11 bankruptcy, planning to close underperforming locations and seeking a buyer to restructure its debts and operations. Share your thoughts about Red Lobster's journey from success to financial straits in the comments below. Learn more about how martini.ai can enhance your strategy: https://lnkd.in/grbEbxeu #Investment #Finance #RestaurantIndustry #RedLobster #PrivateEquity #Bankruptcy #martiniAI

As the news rolls in about Red Lobster bankruptcy preparations, I’ve been reflecting on what this says about the industry as a whole. With traffic down and margins continuing to be pressured by inflation, many brands have turned to new value menus and promotions, as Red Lobster did with their all-you-can-eat deal last summer. It was pretty popular… to the tune of $11m in losses in just one quarter. The challenge with discounting and promotions like those is that if it is not driving  **incremental** traffic (in other words, diners who wouldn’t have visited anyway), they’re not helping your business — they’re eroding profits. Here’s an example: Say a restaurant needs 100 customers a day at $10 a meal to generate a profit, with a gross profit per meal of 50%. If traffic is down 4% and a discount promotion of 20% is used to drive traffic, they need 5 incremental transactions from the promotion to be profitable. However… if 20 NON-incremental customers use that SAME promotion, the restaurant now needs a 10% increase in incremental transactions. Discounting can result in a downward spiral of profits an revenue when not incremental. And that’s why one-size-fits-all discounting isn’t the answer to falling profits. However, personalized offers that only apply when a transaction is incremental, helps to fill tables and increase diner spend without losing control of the bottom line. #hospitality #inflation #profitability #redlobster #redlobsterbankruptcy

For the US restaurant chain, Red Lobster, an endless shrimp promotion resulted in endless losses. The chain filed for chapter 11 in the last 24 hours, after succumbing to a range of financial pressures. Like many other restaurants and retailers in the US, a sluggish economy and changing consumer preferences ultimately proved too much. The news article below highlighted that the endless shrimp campaign in 2023 was possibly the straw - or the shrimp - that broke the camel’s back. The restaurant and retail sectors have seen many bankruptcies and store closures as players in both sectors have been unable to deal with, inter alia, the rise of ecommerce (think uber eats), post-COVID consumer behavior, changing consumer preferences, increasing costs, and high fixed overheads. From a 52 Risks® perspective, the primary risks that manifested for Red Lobster were Business Model Risk, Revenue Risk, Expense Risk, Cash Flow Risk, Financial Leverage Risk and Hidden Liabilities Risk. Click here to learn more. www.52Risks.com #strategy #riskmanagement #financialrisks #chapter11 #52Risks

Red Lobster, the iconic American seafood chain known for its cheddar bay biscuits and "endless shrimp" specials, has recently filed for Chapter 11 bankruptcy protection. This decline stems from a combination of rising seafood costs, shifting consumer preferences towards healthier options, and strategic missteps following its acquisition by Golden Gate Capital in 2006. Cost-cutting measures and promotions like "endless shrimp," though initially successful, eventually led to operational challenges and financial losses. Further compounding Red Lobster's woes were long-term leases that became burdensome as profitability declined. Attempts to modernize the menu and decor alienated core customers without attracting new ones, exacerbating the financial strain. By May 2024, the chain's struggles culminated in a bankruptcy filing aimed at restructuring debts and closing underperforming locations. Red Lobster's story underscores the critical need for restaurants to adapt to changing market conditions, embrace technological advancements, and continually reassess their offerings to stay relevant in a competitive industry. Learn more about how martini.ai can get ahead of these bankruptcies: https://lnkd.in/gzH4U5-h

Any visitor to New York will notice the many street food carts. What’s the business behind it? Positioned in high-traffic areas, a successful cart can earn significant daily revenue. For instance, a cart making $1,000 daily might have expenses such as $300 for ingredients, $100 for permits and fees, and $100 for labor, leaving the micropreneur with a profit of $500. Efficient replenishment is key, with operators restocking early morning or late night. Strategies like bulk purchasing, daily inventory checks, and flexible menus help maintain profitability. Despite challenges like regulatory compliance and competition, these carts exemplify entrepreneurial spirit and adaptability. Supporting them means backing local innovation and hard work.

🚫 📈 Pricing Clarification Alert 📉 🚫   Wendy´s 🍔 recently got roasted on social media after this week’s blog posts. They announced to try out “dynamic pricing” in their restaurants.   While innovation is key, it seems this move has left a sour taste in many customers mouths, as dynamic pricing was referred to surge pricing by the media and social media community.   Let´s set the record straight: Surge pricing is not the same as dynamic pricing! Surge pricing typically involves temporary increases due to high demand, while dynamic pricing adjusts prices based on various factors like supply, demand, competitor pricing and taking real time data into account.   Recognizing the negative impact, Wendy´s revoked their initial statement by emphasizing their commitment to maintain fair, transparent prices and not to implement a surge pricing strategy 💸   What do we learn? 💡   #Pricing is a sensitive terrain with profound consequences if mismanaged, also in case of marketing & communication 📢 . The impact of Pricing on customer perception, market competitiveness and overall business success is undeniable 🎯 #dynamicpricing #pricingknowledge #pricingiseverywhere