Empowering profitable decision-making: how a single data-driven change delivered 6x ROI
Rosa's Thai Cafe was able to generate an immediate 5% uplift in sales across just six weeks, thanks to a decision to trim prices on dishes identified through Yumpingo as underperforming on value.
Since partnering with restaurant intelligence company Yumpingo in 2018, the London-based restaurant group has been empowered by data-driven decision-making – healthily growing both its sales and guest experience metrics at the same time.
Yumpingo isn’t just giving us data, it’s highlighting actionable insights and paying for itself many times over. We wouldn’t go back to making decisions without it.
Gavin Adair, Managing Director at Rosa’s Thai Cafe
This case study demonstrates how some seemingly minor (but well-informed) pricing changes alone paid for Yumpingo’s services six times over.
Enhancing the value proposition – raising revenue by reducing prices
On the basis of insight generated by thousands of Yumpingo customer reviews, Rosa’s made the commercial decision to boost sales by reducing prices on selected starters and sides. These dishes had been identified through Yumpingo as having underperforming value perception ratings from customers.
Measuring the impact of these price reductions alone over two 6-week periods pre- and post-changes delivered some marked improvements in spending behaviour, generating:
5% net sales increase*
13% increase in unit sales of price-reduced dishes compared to +2% on rest of menu*
7% more guests ordering from both starters and sides*
16% increase of customers’ perceived value of price-reduced dishes
5% additional drink sales revenue*
*These figures have been adjusted to exclude the impact of extra sales from increased footfall, so results can be directly attributed to price changes only.
These price amendments alone delivered 6x ROI (return on investment) on the Yumpingo service over the period, as happier customers spent more while enjoying increased value - which can be clearly illustrated by looking at average spend per head before and after the price changes:
"Naturally any move to reduce prices feels counter-intuitive in what is a difficult market, but being armed with a huge amount of sound customer insight makes that call easier” says Gavin Adair, MD of Rosa’s. “We're determined to focus on customer satisfaction to grow the business, so it’s phenomenal to see such immediate payback, in both sales and guest feedback, from decisions supported by Yumpingo data. Previously we’d have had to rely much more on gut-feel to guide our choices so it’s invaluable to have a way to really listen to and learn from our customers."
Feeding into the bigger picture - NPS skyrockets as sales grow
This additional revenue generated by well-informed price amendments feeds into a suite of other positive increases seen by the group across their partnership with Yumpingo.
In the last six months of working with the restaurant intelligence platform, Rosa’s Thai Café group has seen a dramatic jump in Net Promoter Score (NPS) from 62 to 79, thanks to the improved visibility of customer experience empowering the team to deliver consistency and apply constant incremental improvements. New team incentive schemes based on Yumpingo data were introduced in October, putting customer satisfaction front and centre of every service.
Gavin Adair comments; “It’s been great to see our teams embrace Yumpingo. It’s giving our managers, both back and front of house, the right tools and visibility to drive their customer experience KPIs.”
As more happy customers returned and recommended Rosa’s to others, annual like-for-like comp sales, footfall and net sales revenue also increased significantly. In the time periods compared for our case study alone, we can see impressive uplifts across all these metrics:
Return on Investment: Rosa’s Thai Cafe group’s perspective
Gavin Adair, Managing Director of Rosa’s Thai Cafe comments; “We’ve already seen Yumpingo is a clearly sound investment that will ultimately pay for itself many times over.
Seeing small price reductions actually increase revenue is obviously really positive. We needed data to make this decision and for that you’ve got to have robust evidence from a wide pool of real customers to give you confidence you’re doing the right thing. In addition Yumpingo is helping keep us honest with regard to driving quality, flavour, service and value for money across the menu and across our sites.
As this case study shows, the huge amount of customer insights received through Yumpingo can really empower some quick commercial wins. We now see this partnership becoming even more important particularly as we expand in to new regions where market drivers and customers are different, and our team is further away geographically. We’re excited to see the future impact of building Yumpingo into our team’s KPIs.”
For us, this is a business-critical partnership. Our plan now is to leverage our relationship with Yumpingo even more fully, to replicate successes we’ve had at group level by deploying their intelligence more systematically at site level too, to reap even greater value from enhancing our customer service and guest experience.”
Gary Goodman, CEO of Yumpingo, says: “When it comes to business investment, the key question on most restaurant operators’ minds is: is it worth it? Will we get a decent ROI via real uplift in top-line revenue and bottom-line profitability? Rosa’s Thai Cafe’s experience with Yumpingo is an emphatic yes to all those questions.
Demonstrating this kind of commitment to listening to its customers and tailoring its offering accordingly is an approach that’s really paying off for Rosa’s. By paying close attention to guests’ views, delivered on a macro scale but distilled down into clear, easy-to-use insights, Rosa’s is able to de-risk its commercial decision-making and put itself on the fast-track to success.”
In 6 months Yumpingo has collected 49,120 in-moment customer reviews and 267,804 food and service responses for Rosa's Thai Cafe.
Looking for more detail?
More background on the research in this case study can be found in the appendix