Affinnova helps Sbarro test menu prices
Affinnova Inc., a Waltham company that helps consumer-products company do market research, said it has helped the Italian restaurant chain Sbarro to optimize its menu pricing.
Facing rising food costs and softening industry traffic, Sbarro concluded that relying on traditional point-of-sale tracking data would not be sufficient by itself to provide enough guidance.
So Sbarro, a Melville, N.Y.-based chain with more than 1,000 locations, turned to Affinnova, which was founded by two PhDs from the Massachusetts Institute of Technology who figured out that algorithms developed for genetic research could be modified and repurposed for the study of consumer behavior. Company customers include such household names as Procter & Gamble, Unilever, Nestlé, Pfizer, Walmart, and Microsoft. To meet demand, Affinnova has been growing its workforce.
In a press release today, Affinnova said it used its Price Advantage product to engage directly with Sbarro customers.
Affinnova then tested six price variations across 45 menu items, the company’s release said. “Guests responded to realistic pricing scenarios, and their reactions were tracked as price increases and reductions were applied throughout the test. Affinnova also tracked how individual guests switched from item to item when faced with changes to the pricing and menu offering. Altogether, thousands of variations were tested and evaluated.”
Chris Reidy can be reached at reidy@globe.com.- By Email Business Updates newsletter
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