In this economy, restaurants are really hurting for sales as customers cut back on luxuries like dining out. It seems like restaurants are scrambling to get people in the door by offering coupons and "limited time offer" pricing. But what if a restaurant had a game plan BEFORE a slower economy (or a rising one)?
Quizno's is doing just that. At the company's annual meeting on August 10, the Flex Plan was unveiled. Food Business News reports that the Flex Plan is "a product development strategy that quickly responds to changing economic conditions...Flex Plan allows for the development of many different products, varying based on price point and balacing consumer taste with product cost." For example, Quizno's recently introduced the $4 Toasty Torpedo and the $3 Toasty Bullet. These new lower cost subs were created to protect franchisee margins while still providing an affordable option for consumers. When the economy is doing well, the Flex Plan allows for development of more indulgent products like premium, double-meat subs.
Rick Schaden, CEO of Quizno's, has said, "This economy presents unique challenges, particularly as consumer confidence ebbs and flows. We knew there was a better way to address the changes that came with this economy. By preparing for eventualities, we're taking the gueswork and delay out of product innovation and allowing for an immediate response to customer feedback. It's better for our customers and it's better for our franchise owners."
As an entrepreneur, have you developed a plan for economic changes? What do you think of the Quizno's Flex Plan? After reading about the Flex Plan (and experiencing today's slow economy), will you develop a plan for the future?