Gross Margin Per Store

Client:

  • Large fast food chain (prefers to remain anonymous)

Program Type:

  • Offered a singular Register Tape offer across all day parts

Timing:

  • Register Tapes were delivered to stores for 4 weeks on shake offer and
    10 weeks on coffee offer

Offers:

  • Shakes - BOGO
  • Coffee - BOGO

Redemption Results - per restaurant: $5.40 average ticket

  • Participating restaurants averaged +170 weekly Promo units
  • Result – Shakes
    • - +170 Visits x $3.90 gross margin (GM) per order
    • - $663/Week x 4 Weeks = $2,652
    • - Assume 35% Incremental = $928 incremental GM/Restaurant
    • - Annualized $12,064 additional GM per store
  • Result – Coffee Drink
    • - +170 Visits x $3.88 gross margin (GM)per order
    • - $660/Week x 10 Weeks = $6,596
    • - Assume 35% Incremental = $2,309 GM/Restaurant
    • - Annualized $12,006 additional GM per store
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