Data Shows Soft Drink Pricing Highly Variable Throughout Country
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Intellaprice(R) Publishes In-Depth Soft Drink Study to Help Restaurant Industry Price Items Competitively BOSTON--(Business Wire)-- Patrons of casual dining establishments pay $2.26 on average for a soda, according to research published by Intellaprice(R) (www.intella-price.com), a Boston-based pricing intelligence firm. The differences across the country are quite noteworthy. For example, in Dallas the standard soda price is $2.10, whereas in New York, it averages $2.53. "It's not surprising to us to find that in New York, a market recognized as being at the high end of the cost spectrum, we observe the highest average prices," said Leslie Kerr, President of Intellaprice. "However there are some interesting unexpected findings in the study as well." Among these: -- Washington, D.C. average soft drink prices are close to the national average, despite the fact that D.C. was found to have the highest bar beverage prices in an earlier study conducted by Intellaprice (available upon request). -- Philadelphia also shows soft drink prices close to the national average, in line with markets like Minneapolis and Grand Rapids. Kerr also noted that within a market, the price for a soft drink can differ by up to $2.00. "In the New York market, for example, a soda can cost consumers anywhere from $1.99 to $3.99," said Kerr. "If you want a bargain, don't go out to eat in Times Square." The soft drink survey covered over 250 casual dining establishments from coast to coast. Beverages studied included iced tea, lemonade and special non-alcoholic drinks like Red Bull and Lemonade. These studies are difficult for restaurant operators and beverage companies to conduct on their own. Intellaprice provides this information so that companies can better understand the pricing landscape and make decisions based on trends evident in the data. Other interesting findings from this study include the following: -- Price ranges are narrower in lower cost markets than in higher cost markets. In Cleveland, for example, typically at the low end, the price varies by just $.60 across the market, compared to New York's $2.00 price range. -- Soft drink refills are virtually always free as a way for restaurants to provide a strong value perception among their guests. -- Restaurants promote soft drinks differently, with some choosing to feature beverage logos throughout the restaurant and on menus, and others opting not to. -- Lemon wedges are the most common garnish, and different fruits are used in specialty drinks. "We recognize that restaurant operators and beverage companies face the huge challenge of effectively navigating through market pricing," said Kerr. "We come to their aid by providing a much needed service with customized data and market analysis that enables them to make better informed pricing decisions." About Intellaprice(R) Intellaprice is a full-service pricing intelligence firm serving the restaurant and beverage industries. Intellaprice publishes The Intellaprice Report, which is syndicated pricing intelligence on quick service and casual dining segments. Intellaprice specializes in pricing, profitability, and marketing analysis, to help organizations increase sales, grow profit, and reduce competitive intelligence costs. Intellaprice was founded by restaurant industry veteran Leslie Kerr and is based in Boston. For more information visit www.intella-price.com. Intellaprice(R) LLC Leslie Kerr, 617-723-7977 firstname.lastname@example.org Copyright Business Wire 2008