Foodie Biz
  • Home
  • About
  • Blog
  • Consulting
  • Contact

Foodie Biz Blog

Easy to Please, Hard to Impress

Keeping Your Prices Honest…Not as Common as You think

8/25/2016

21 Comments

 
Picture
Law and ethics have an interesting relationship in the business world, and certainly in the restaurant industry. I’m talking specifically about price consistency [prices as they appear online vs. in the restaurant itself], where the opportunity to bend the rules remains ever-present. While many restaurant owners are pushing the boundaries to come across as more affordable on the front end, they will feel the consequences of lost volume and loyalty if the gap between perceived price and actual price grows too big.

I became an alienated customer last week, when my bill totaled 50% more than I planned to spend. This restaurant’s ‘average price’ was listed around $30 in several online resources. $30 covered my entrée [nowhere near this restaurant’s most expensive item] and a side dish. No drinks, no dessert, and one appetizer split four ways. After tax and tip I spent $45 to leave just above the threshold of still hungry.

The money wasn't the issue. The food happened to be very good, and aside from small portion sizes, worth the cost. The problem was that everyone in my group felt cheated, like the restaurant lured us in with a $30 estimated price, then used a bait-and-switch to make us pay $45 at the table. We will not be dining there again for a long time.

Keep your perceived menu prices honest. Try the following tactics...

Keep Your Online Menu Up-to-Date
The vast majority of potential customers look up a restaurant’s menu online before deciding to dine. Cases certainly exist where restaurants leave an outdated menu that lists phased-out items, or worse, old prices. Inflation and rising food costs inevitably lead to price hikes, but be sure to give your customers realistic expectations of what they need to pay. The difference of a dollar, or even a few cents, can be a deal-breaker for some customers, and ultimately will mean the difference between them becoming repeat customers. Not to mention what they will say to their friends if they felt like they were cheated out of a few bucks…

"If your target customer doesn't typically look at the price when ordering, they’re not going to look much at the estimated price online either."
Some restaurants choose not to include prices on their online menus. This topic could become its own article [and likely will in the future], but as a general rule the only restaurants that should do this are those that appeal exclusively to a highly affluent clientele. If your target customer doesn't typically look at the price when ordering, they’re not going to look much at the estimated price online either. For those restaurants catering to the other 99.9%, I would recommend posting your prices because your customers will find an estimated cost one way or another.

Monitor Your Prices on Online Review Sites
Restaurant research is dominated by the Zagats and Opentables of the world. While many customers will find your menu online, they will almost certainly use tools like these to look you up [or find you in the first place]. These resources each have their own methods for calculating average check: entree, appetizer and split dessert vs. entree and both split appetizer and dessert; 1 drink included vs. no drinks included, etc. virtually none of them factor in tax and tip. The key is to keep your prices as consistent as possible across these platforms.

Understand the Customer Experience
It is also essential to be realistic in projecting what your typical customer would order. If you serve smaller portions and notice customers averaging 3-4 dishes each, it is imperative to reflect these findings in your estimated average check. Nobody likes to leave a restaurant hungry, and customers that feel like they need to cut back on the amount of food they order just to stay within budget will be hesitant to return.

Additionally, your projections should properly reflect which ‘cost tier’ customers order from most often. Very few people will order the cheapest appetizer, entree and dessert on the menu, and customers will quickly pick up a restaurant's attempts to hide higher prices behind singular low-cost items. Consider a tracking system that lines up items in each menu category from least to greatest and records the amount of each item ordered. The resulting visual is a bar chart that shows you the where the majority of your customers will fall in terms of price point.

In hindsight, the principles are quite simple. Be real about your restaurant's prices. This may cost you in the short-term, but you will reap tremendous rewards over time by growing repeat customer revenue and word-of-mouth marketing.
21 Comments
JetEngine for Elementor Nulled link
9/5/2022 07:42:12 am

Really informative article, I had the opportunity to learn a lot, thank you. https://freecodezilla.net/jetengine-for-elementor-download/

Reply
site kurma link
9/11/2022 02:24:09 pm

Really informative article, I had the opportunity to learn a lot, thank you. https://kurma.website/

Reply
mobil ödeme bozdurma link
9/12/2022 01:23:50 am

Really informative article, I had the opportunity to learn a lot, thank you. https://odemebozdurma.com/

Reply
website kurma link
9/14/2022 05:23:40 pm

Really informative article, I had the opportunity to learn a lot, thank you. https://bit.ly/site-kurma

Reply
web site kurma link
9/30/2022 01:59:26 am

It's great to have this type of content. Good luck with your spirit. Thank you. https://bit.ly/site-kurma

Reply
samsun escort link
10/5/2022 03:55:44 am

It was a post that I found very successful. Good luck to you. https://escortnova.com/escort-ilanlari/samsun-escort/

Reply
batman escort link
10/6/2022 01:15:00 am

I follow your posts closely. I can find it thanks to your reliable share. Thank you. https://escortnova.com/escort-ilanlari/batman-escort/

Reply
siverek escort link
10/6/2022 09:08:39 am

I support your continuation of your posts. I will be happy as new posts come. Thank you. https://escortnova.com/escort-ilanlari/sanliurfa-escort/siverek-escort/

Reply
gumushane escort link
10/8/2022 12:06:17 am

Thank you for your sharing. I must say that I am successful in your content. https://escortnova.com/escort-ilanlari/gumushane-escort/

Reply
karacabey escort link
10/8/2022 06:39:04 am

Thoughtful and real content is shared. Thank you for these shares. https://escortnova.com/escort-ilanlari/bursa-escort/karacabey-escort/

Reply
Korsan Taksi link
11/12/2022 03:38:36 am

Sitemizi ziyaret et: https://taksikenti.com/

Reply
evde iş imkanı link
11/21/2022 11:55:24 pm

Sitemizi ziyaret et ve evden is imkanina bak: https://sites.google.com/view/evden-ek-is/

Reply
betinfo link
11/22/2022 09:16:50 pm

It was a successful post.These types of posts are very helpful.

Reply
mrbahis link
12/6/2022 12:20:10 pm

Congratulations for the successful article. I can't wait for the sequel.

Reply
mrbahis link
12/8/2022 04:03:10 pm

This is nice work. Seeing good works on good days gives one peace of mind.

Reply
takipçi satın al link
12/9/2022 11:11:19 pm

Düşmeyen bot takipçi satın al: https://takipcialdim.com/

Reply
instagram beğeni satın al link
12/10/2022 01:47:25 am

İnstagram beğeni satışı yapan firmamıza göz atın: https://takipcialdim.com/instagram-begeni-satin-al/

Reply
sportsbet link
12/10/2022 06:55:25 am

I follow your work closely. Congratulations for this beautiful content.

Reply
sms onay link
12/15/2022 08:34:02 pm

Hemen Göz At: https://www.smsonay.com/

Reply
takipçi satın al link
12/15/2022 08:35:22 pm

takipci satın almak için tıkla: https://takipcim.com.tr/

Reply
casino siteleri link
12/28/2022 06:11:33 am

online bahis oyna: http://haikuboy.com

Reply



Leave a Reply.

    Picture

    Author

    Benjamin Brown is a seasoned restaurant writer and hospitality consultant, serving up SoCal's hottest food news and reviews.

    Categories

    All
    American
    Anaheim
    Beer
    Beverly Hills
    Biz
    Biz Tips
    Brunch
    Celebrity Chef
    Cocktails
    Comfort Food
    Consulting
    Downtown
    Economical
    Food Festival
    Glendale
    Hollywood
    Huntington Beach
    Irvine
    Italian
    Japanese
    Koreatown
    Las Vegas
    Long Beach
    Marina Del Rey
    Mexican
    Middle Eastern
    Newport Beach
    Pasadena
    Peruvian
    Pizza
    Rancho Santa Margarita
    San Diego
    Santa Clarita
    Santa Monica
    Seafood
    Small Plates
    South Bay
    Steakhouse
    Studio City
    Thai
    Venice
    Ventura
    Westlake Village
    Westood
    Wine
    Woodland Hills
    Yorba Linda

    Archives

    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    September 2020
    April 2020
    March 2020
    February 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016

    Instagram

    @Foodie_Biz

    Picture
Home
About
Blog
Consulting Tips
Contact
Legal
Foodie Biz provides restaurant news and reviews for the food community, as well as consulting advice for restaurant owners and other hospitality professionals.
Contact Foodie Biz for media opportunities and freelance consulting projects.

Contact Foodie Biz

Picture
  • Home
  • About
  • Blog
  • Consulting
  • Contact