Old Town's Feedback On Multi-tier Pricing

After many days and weeks, probably months, finally OldTown reply our mail.


It do got me wondering why it took so long. Having a hard time trying to construct a proper acceptable essay? My apology for being harsh. However, it feels good that they feedback our concern, it might be a little late, but it make us reader content.

Here's their response...

Greetings from OldTown!

First of all, thank you for your e-mail describing your concerns regarding the multi-tier pricing issue.

For years, OldTown restaurant chains had adopted the chains cautiously approach - a multi-tier menu pricing plan to broaden consumer appeal by having different pricing for different customers and groups of customers at different locations. The big gap in the shop rentals and labour cost in different regions and locations (i.e. compare rentals at rural area and urban area) has prompted OldTown to apply multi-tier menu pricing in order to make our restaurant an affordable choice for all levers of consumers despite of its geographic locations.

What is multi-tier menu pricing? You saw it first in fast food industry. Multi-tier menu pricing strategy is not an offbeat strategy to propel customer traffic in not only F&B industry but also other industries such as automobiles, retails and so on in Malaysia. It is growing in popularity. OldTown has to go to multi-tier menu pricing to assign customer groups with differentiated pricing which is affordable by different income groups. Thus, the menu price has been set slightly lower at rural areas compared with urban areas based on our customer acceptance survey on menu price.

OldTown is always offers quality meals at an affordable price. The driving force behind our efforts is the continue support of customers to enjoy the food and dining environment in OldTown restaurant. We are caring and sensitive to local spending power and continually striving to offer customers more-attractively-priced meals with a pleasant dining environment.

If I may be of further assistance to you, please contact me at 016 5260011.

Your continued support means a great deal to us.

Thank you

One question, aint all McDonalds, CoffeeBean, SecretRecipe branches in Penang having the same prices as well? Talking about labor and rental cost just doesnt make sense especially when there are existing living example. My bottomline is, as a franchises under the same geographical area, the prices of goods should be the same.

But still, the fact that they acknowledge the discrepancy and reply to us is enough to satisfy me.

Old Town's Discrepancy (Part II)

This entry, is the continual/ follow up from the previous Old Town Discrepancy posted on July. Guess its about time to feedback on the findings as well.

Does efficiency and response time able justify the effectiveness of a system? For instance, Old Town franchise. Due to the difference of prices in some of the branches, my friend Eileen, mailed to Old Town to clarify some of pondering thoughts on the exact same day. She's fast.

Here it goes...
"Hie. I would like to know is the price for the food in all OldTown outlets the same or each outlet has its own price? Because at the moment, i have come across 2 outlets in Penang with 2 different price and im kinda surprise and taken a back at the standard of OldTown. Please clarify. Thanks in advance."

In our MSN conversation...
Dann: guess how long does it takes to reply?
Eileen: they say 5 days
Dann: o.O
Eileen: "Do use this general inquiry form and send us an email to OLDTOWN. Your email will be answered personally by a member of the team within the next 5 working days."
Dann: that should be... this weekend =)

Patiently we waited. By the time im posting this, its now 20 days, and still without a single reply. OldTown... guess the name already explains itself... =x

However, according to Phoenie who has a friend once work at one of the Old Town branches, said this, "Different branches in Old Town have different manager in charge. And in each branches there are allow to have their own prices on items sold. BUT, there are a minimal and maximal amount of increment they must obey. Else the value would be too much of difference."

Here's another update of prices gathered at Old Town, Autocity.

drinks

foods

As for the conclusion, you'll decide then... =)

Old Town's Discrepancy

This week on The Journey, we bring you something blizzard that might shock your brain out of your head... okay, wasnt to that extend. However ladies and gentlemen, the fact might had your eyes grew larger and your mouth open wide.

In this episode, one of our private investigator Ms Jessie Teh, made several trips and dine at one of our local franchise, Old Town. Respectively at E-Gate and New World Park.


Ordering quite a number of same items, just to realize that the pricing was different!!!

Evidence? Moment of truth...

check out the prices (click to enlarge)

According to the receipt generated from the computerized billing, the cost of a hot White Coffee in E-Gate compare to New World Park is cheaper by 30cents. While you would have to pay extra 50cents if you ordered Curry Mee in New World Park!!!

These are just two items that she found out. There may be more ladies and gentlemen, there may be more...

We as a consumer, we do understand that the rentals are pretty much neck choking and arm chopping if you were to start a business like this. Furthermore the geographical and climate differences are another solid reason.

However ladies and gentlemen, its not right to compare the price of McD in Penang to Genting. This is because there are several aspects beside rental cost that hike up the price. Same goes to the petrol. So dear audiences, is it wise to have discrepancy in pricing of item sold within a franchise at Penang itself? Old Town in E-Gate and in New World Park.

The next question... how many of you actually did realize this?

For those who are curious, you may start your little adventure and do some survey. May this not bring any unhappiness to those who read it, let it bring awareness to those who came across it. Besides... its a consumer's right to know.

Hmm, i wonder... Should i send to The Star Newspaper? Do you know there's a column where the readers could send in photo and the winner could grab an amount of RM50 daily. Hehee... am i lucky enough then?

Notice that even im slamming on the differences of pricing; you will still be seeing me again at that venue the next time. Why? There's nothing more refreshing than a cup of coffee blend with richness of taste and aroma. Not to mention the priceless moment where you could possibly laughs, cheers and get together with friends and relatives... =)