Price Elasticity
The degree to which customer demand changes in response to price changes, measuring sensitivity to price increases or decreases.
Related Terms
Menu Pricing
The strategy for setting menu item prices to balance customer value perception, competitive positioning, and target profit margins.
Traffic vs. Ticket
Analysis separating same-store sales growth into transaction count (traffic) versus average check (ticket) components, revealing underlying sales drivers.
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AlixPartners Analyzed 90,000 Restaurants. The Math Behind the Value War Has Fundamentally Changed.
New data from AlixPartners' Proprietary Pricing Platform reveals that menu prices outpaced inflation across 90,000 locations, but transaction values fell behind. With gas at $3.94 a gallon and Oxford Economics projecting the slowest consumption growth since 2013, the restaurant pricing playbook is being rewritten in real time.
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DoorDash activated an emergency fuel relief program on March 23 as gas prices hit $3.98/gallon nationally, up 35% in one month. The oil price shock from the Iran conflict is sending delivery costs surging across the restaurant supply chain.
Operations & ManagementRestaurant Growth Stocks Hit a Wall: Inside the Late-February 2026 Selloff
In late February 2026, Wall Street repriced fast-casual growth stocks aggressively, sending Wingstop, Shake Shack, and CAVA lower while McDonald's and Starbucks surged on execution. The divergence signals a fundamental shift in how investors value restaurant growth.
Finance & EconomicsThe Pizza Price War Escalates: Domino's $9.99 vs Pizza Hut's $10 in a Fight for Survival
Domino's and Pizza Hut are running nearly identical sub-$10 any-pizza deals at the same time. With Pizza Hut closing 250 locations and Papa John's shuttering 300, the pizza value war is no longer a marketing tactic. It is a restructuring event.
Marketing & Growth