The resurgence of “value” as an order driver & how to avoid the misconceptions

Panera's sweeping menu changes focus on Value as a driver, but this doesn't mean they're going dollar menu and neither should you.

Panera recently announced sweeping changes to their menu including culling down the number of items and launching a more value focused approach. “Value” can be a word that triggers negative emotions from restaurant leaders, but in times of economic pressures like we see today, Value is a huge driver of business. But what does “value” really mean?

The resurgence of “value” is multifaceted, transcending the simplistic association with dollar menus, deals, and cheap food. This redefined perspective on value is rooted in a deeper understanding that patrons are looking for experiences that exceed their expectations relative to the price paid. It’s not just about the affordability but about the quantity, quality, uniqueness, and overall experience that guests perceive as worth more than the financial cost incurred.

This notion of value aligns with a broader understanding of how economic pressures influence consumer behavior. When faced with tighter budgets, customers become more discerning about where and how they spend their money. They seek assurances that their expenditure will grant them satisfaction that surpasses the monetary value. Thus, restaurants that manage to deliver an experience, quantity and/or quality of food, or uniqueness that feels like a bargain compared to the price are more likely to attract and retain customers, even in challenging economic times.

This concept is reinforced by the increasing importance of delivering a holistic and satisfying experience that resonates with patrons on multiple levels, from the quality and uniqueness of the food to the ambiance, service, and even the story behind the restaurant brand. This multi-dimensional approach to value creation reflects a deeper understanding of what modern consumers seek in a dining experience, emphasizing the importance of exceeding expectations in every aspect of service and product delivery.

The evolution of the term “value” in the context of the restaurant industry underscores a shift towards more sophisticated consumer expectations. It highlights the need for restaurants to innovate and find new ways to deliver exceptional experiences that justify the price, rather than simply competing on cost or offering discounts. In doing so, restaurants can create a loyal customer base that values the unique offerings and experiences they provide, thereby sustaining traffic and revenue even in the face of economic headwinds.