This week I presented pricing data to a client and some of its franchisees as part of a pricing review. It was a good opportunity for a discussion around restaurant pricing, and now it's a good opportunity to share some thoughts on why restaurants should hold pricing meetings and how to conduct such gatherings.

Why Restaurants Should Have Pricing Review Meetings

It may be tempting to compile data, crunch numbers, and make decisions at the corporate level, and follow this with communication about decisions made or suggested retail price lists. But it's important to build a step - or two - into the process to review data with franchisees - or company-store managers - and corporate field team members to gather input. This is invaluable for all groups in terms of the information shared, especially when it's not the norm. 

There are several benefits to holding such a meeting, among them:

• If corporate conducts analysis without taking the time to review data and findings, the due diligence can go unrecognized and underestimated by those not privy to details
• Franchisees/company store managers can give an up-close view of the market that might otherwise go un-noticed
• Sharing pricing data helps eliminate opinion-based arguments
• Having a dedicated meeting allows stakeholders to focus on important topics that are invariably given too little agenda time at larger meetings
• Building consensus is easier when more of the vested parties participate in the process

What Should a Pricing Meeting Look Like?

If you include this step in your pricing process, keep these guidelines in mind so the meeting is effective.

Keep it Legal

Start with a disclaimer and insist on complying with antitrust law. Do not tolerate discussion about setting prices and consult your attorney about how to manage the conversation to avoid inappropriate topics and focus on analysis and findings.

Invite Key Stakeholders

This includes those who set the best example as well as naysayers and squeaky wheels in the system. Include franchisees - or company-owned store management - and a cross-functional, geographically representative group of field team members.

Present Data Effectively

Keep the information digestible by using charts and graphs to highlight research and using lay terminology. I often hear the term "eyes glazing over" in association with pricing data. Make it your goal to avoid that, and keep many presentations on hand from high-level summaries to detailed charts. Begin by summarizing findings using selected graphs and delve into further detail after reviewing the summary findings. If any attendees want to delve even further, use the additional presentations to meet these requests. 

Seek Input

Use the meeting as a chance to understand what's on stakeholders' minds and use their knowledge and experience to your benefit. Prepare questions so you can gain certain insight. Some helpful ones include:

• What are their biggest pricing challenges?
• What information do they seek?
• What support do they wish they had?
• How have they approached pricing decisions?
• What tools would assist them in making decisions?
• What's happening in their market at key competitor brands?

With proper preparation, a pricing meeting will leave all participants feeling that attending was time well-spent. If you are interested in what actually went down at the meeting - stay tuned for my next post.