Posts Tagged ‘pricing strategy’

Menu Options to Reach Customers

July 19, 2011

The cost of restaurant operations is going up.  The increasing price of commodities may require restaurants to increase menu prices.  And all the while, consumers have become pickier about how they spend money.  They want value as well as a good price.


The challenge for a restaurant is to figure out how to make a profit while still offering value.  That is not to say that menu prices can’t be increased to generate profit.  But the underlying issue is respecting customers and realizing that they are savvier buyers than they were a few years ago.


If increasing the menu price is on a restaurant’s to-do list, value should be included along with it.  Customers don’t want to feel like they are being ripped off, so adding in some options that allow them more bang for their buck may be a good idea.


Prix fixe menus, smaller portion sizes for a lesser cost, and different pricing tiers are three ways a restaurant can offer value while still getting their share of profits.


It would also be wise for a restaurant to develop a pricing strategy that takes the customers’ needs into consideration rather than just increasing prices.


Upselling may also be a thing of the past as far as customers are concerned.  Instead of asking if a customer would like an extra option, train servers to analyze and cater to the customer’s needs.  Offering a personalized customer experience may be the name of the game.


Keeping up profit in today’s world of thrifty consumers looking for bargains doesn’t have to be an impossible feat.  But it is important for restaurants to think about the customers and not just the bottom line.


That is not to say they need to sacrifice the brand for the price.  Rather, make the brand and the experience an invaluable part of the consumers’ lives.  Offer value as well as a great dining experience.  Give them a reason to come back for more.