Jimoco Pasta’s Success: A Brief Analysis
Today, I went to Jimoco Café & Pasta with my parents for lunch. Because the place is extremely popular but relatively small, with about 4 booths and 6 tables each fitting 3 or 4 people, people have to call in for reservations (refer to picture below).
You can see on the poster pasted on the window that Jimoco has a “Grand Opening: 2 for 1 Pasta Special.” This is quite peculiar, as the restaurant has been open for a year already. This deal, however, is what I attribute largely to Jimoco’s popularity.
The pricing of each pasta ranges from $9 to $15. After the special, each pasta comes down roughly to $5 to $7, which is still outrageously cheap. So where does the revenue come from? Aren’t the customers benefiting much more than the restaurant owners?
First of all, the special being “2 for 1” is critical (in comparison with “buy 1 get 1 free,” “buy 1 get 1 half off,” “20% off between 12 and 1…” etc.). With this special, customers almost always come with another person. Oftentimes, people will come in large groups after school, a big gathering, or church events. Then, as more people come, the chances of them purchasing appetizers and drinks increase. Furthermore, the breakfast prices are very cheap as well- before 9:30 AM Every Tuesday to Friday, meals are only $3.00. The low pricing strategy is definitely a smart idea, as the consumer flow is large enough (it is situated on a busy road with many stores, though parking can get tough), and customer loyalty is very easily built.
This clever tactic is not only the reason for their success, however. The chef is outstanding, having trained in Parma, Italy.
Here’s what I had to eat.