Competitive Edge – July

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July By The Numbers

Main Takeaway

With strong consumer spending and inflation uncertainty, restaurants should proactively evaluate pricing strategies.

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State of the American Consumer

• Inflation: Rose 0.3% in June as tariff impacts are more understood (source)
• GDP: Surged to 3% in Q2, beating the 2.3% forecast (source) 
• Spending: Advanced retail sales accelerated 1% in July above a 0.3% estimate (source)
• Consumers: Remain resilient with low unemployment and rising hourly earnings (source)

​Source​

Quantiiv’s Take: Consumer spending provides a chance for restaurants to evaluate pricing strategy. With inflation uncertainty ahead, brands must be proactive, not reactive. 

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Industry News and Earning Results

• US QSR: Traffic fell 0.9% YoY, while prices rose just 1.3% (source)
• Chipotle: Same-store sales declined 4% with traffic down 4.9% (source)
• Domino’s: US same store sales increased 3.4% driven largely by carryout (source)
• Wingstop: Same store sales declined 1.9% but revenue grew as the brand opened 129 new restaurants in Q2 (source)

Quantiiv’s Take: Flattening ticket growth in the industry signals that brands are holding back on price increases. Expect shifts in mix and channel as customers chase value.

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This Caught My Eye (TCME): Pricing With a 40k ft. View 

Delta faced public backlash after announcing an expansion of its AI-powered pricing model which sets fares based on a customer’s willingness to pay. On a recent earnings call, Delta’s president shared plans to grow the AI program from pricing 3% of tickets to 20%, citing strong returns.

Airline pricing is unique. With a fixed number of seats, a ticking clock until departures, and highly transparent competitor pricing, carriers have numerous datasets and statistical models to maximize revenue while balancing supply and demand in real time.

Eventually, all airlines will embrace pricing technology that improves their business. However, the carriers that can implement these changes without customer backlash will deliver topline growth and increase brand affinity. 

Should restaurants adopt similar methods? From an innovation perspective, yes — but only if designed for the industry. McDonald’s, for example, isn’t trying to sell 50 Big Macs by Friday at 5:10 pm with inventory at “0.” Similar to the airlines, restaurant price optimization must reflect the sector’s unique constraints and consumer expectations.

Quantiiv’s Take: Quantiiv’s technology enables restaurants to measure customer willingness to pay while accounting for industry nuances. These advanced methods drive topline growth while protecting brand affinity. 

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Interested in learning more?

Reach out here for a free consultation to understand how Quantiiv’s advanced pricing and menu analytics methods can give your restaurant an edge.