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Hospitality Market ResearchCase 03 of 10

Testing new menu items and prices for a restaurant group

A casual dining restaurant group

  • RegionBengaluru, Hyderabad & Chennai
  • Scope1,200 diners
  • Timeline6 weeks
  • MarketsIndia
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01

Industry overview

What is shaping hospitality

Hotels, restaurants and travel brands are judged on every stay, meal and review. Guest experience, consistency and online reputation drive bookings.

  • Online reviews strongly influence bookings
  • Consistency across properties builds trust
  • Guests expect personalised service
02

Client background

A casual dining restaurant group, working in Bengaluru, Hyderabad & Chennai. Client identity is withheld to protect confidentiality.

Organisation
A casual dining restaurant group
Sector
Hospitality
Team engaged
Market Research
Services
Quantitative research, Offline data collection, Financial modelling
03

Client challenge

Rising costs of vegetables, dairy and cooking oil were squeezing margins across the group’s restaurants. Management needed to raise prices and refresh the menu, but feared losing regular diners to competitors in the busy dining districts of Bengaluru, Hyderabad and Chennai.

04

Research objectives

  • Deliver on the brief: testing new menu items and prices for a restaurant group.
  • Understand the views, needs and behaviour of diners.
  • Produce results that can be compared across groups and locations.
  • Give the client evidence it can act on within 6 weeks.
05

Target audience

The work focused on 1,200 diners.

  • diners1,200

Audiences we typically reach in hospitality

Guests and dinersCorporate travel buyersFront-line staffTravel agentsOnline reviewers

06

Geographic coverage

Coverage: Bengaluru, Hyderabad & Chennai. Market: India.

  • India
07

Research methodology

A structured analytical design combining desk research, modelling and primary evidence.

  1. 1Brief
  2. 2In-restaurant tasting tests
  3. 3Price acceptance survey
  4. 4Margin model
  5. 5Insight

We ran tasting sessions in restaurants with regular diners, who tried proposed new dishes and rated taste, portion and value. Diners were then asked structured price-acceptance questions for both new and existing favourites. Our finance team combined the results with recipe costs to model margins and expected demand under different pricing scenarios.

Quantitative researchOffline data collectionFinancial modelling

08

Sampling strategy

diners
1,200
  • Respondents were selected across Bengaluru, Hyderabad & Chennai using quotas set in advance for each location and respondent type, so no single area or group dominated.
09

Data collection

Brief & design Sampling & set-up Fieldwork Analysis Reporting Indicative split of the 6-week timeline.
  • Trained local-language interviewers conducted interviews in person, supervised in the field.
  • Secondary sources and client data were compiled and cross-checked before modelling.
10

Data quality & validation

  • Back-checks on a share of completed interviews
  • Time and location checks on field interviews
  • Supervisor accompaniment in the field
  • Logic and range checks on the final data
  • Work carried out under our ISO 20252 quality procedures
11

Data analysis

  • Cross-tabulation by key groups and locations
  • Significance testing on the differences that mattered
  • Price and trade-off analysis
  • Market model built from secondary data and primary evidence
12

Key findings

  • Testing with real diners replaced guesswork with evidence in pricing decisions.
13

Recommendations

  • Several new dishes tested strongly even at higher prices, while a few popular staples were very price sensitive.
  • The group raised prices selectively, introduced the strongest new dishes as premium options and kept staples close to existing prices.

What we recommended, and the client put into practice

14

Business impact

  • Margins improved without a drop in footfall.
15

Deliverables & next steps

  • Insight report and management presentation
  • Cleaned data file and data tables
  • Repeat the measure after changes are in place to track progress.
  • A natural follow-on question: are properties delivering brand standards?

Client identity is withheld to protect confidentiality.

More hospitality case studies

  1. 01caseA guest experience programme for a hotel groupA mid-scale hotel group
  2. 02caseMystery stays to check brand standardsA luxury hotel brand
  3. 04caseGrowing direct bookings for a resort groupA beach and hill resort group
All hospitality case studies

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