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Market mix modelling for a restaurant chain

Justifying investment

In recent years in the UK several restaurant chains have closed and many others have become reliant on discounting and vouchers.

Against this backdrop, all investments – whether into the brand, the restaurants, or the services provided – need to be justified.

With Holmes and Cook, we carried out market mix modelling to identify the revenue return from marketing investments, restaurant refurbishments, and improvements in staffing.

Delivery

This client had recently begun to offer delivery via delivery apps.

This part of their business was growing quickly, but they didn’t know whether delivery was stealing some eat-in customers, or purely incremental.

We designed a bespoke market mix modelling approach which not only enabled us to answer this question, but also to identify which marketing levers worked best for delivery vs. eat in.

“Rewarding”

We were incredibly pleased to hear that the result was a piece of analysis that the whole organisation believed in.

The CMO said: “Working with Grace and Louise to understand what is driving our performance and the contribution marketing is making has been one of the most rewarding things we’ve done this year.

They’ve really understood our business, supported us in gathering the data required and then worked hand-in-hand to make sure we ended up with a model that the whole organisation would recognise and understand.”

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