Restaurants and Institutions

Dennis Lombardi

Right portion, right price. Right on.
May 12, 2008

About a year ago, T.G.I. Friday's took a bold step and introduced a new menu line of smaller portions at a lower price. It was not without risk, including franchisee reaction, and the potential of lower check averages (which does not appear to have happened).

Kudos to them for taking the calculated risk, and they should enjoy the "first birthday" of the program. They "celebrated" by announcing it was becoming a permanent part of their menu.

In the last few decades, portion sizes increased as a way to show value. For a long while the formula worked; add another 50¢ worth of food, add $1.00 to the check and consumers' value scores and penny profit margins both increased.

But consumers are changing. Boomers are older and all age cohorts are more aware of not just what they eat, but how much of it they consume. Offering more modest portions increases the opportunity for an add-on dessert and appetizer sales. (Friday’s "bite size" dessert portions also are part of their program.)

Other brands will be following suit. Red Lobster's half-price portions are another example. From my viewpoint, this is a long term trend, not a short lived fad.

In fact, it is not too much of a stretch to see this same tactic in the bar. Instead of making drinks bigger and stronger, why not reformulate to make them less potent, yet keeping the same flavor profiles? Sounds too far off the wall? Be patient.

Happy Birthday, Friday's!

Posted by Dennis Lombardi on May 12, 2008 | Comments (0)