Is Your Menu Priced Right?

By: Nicole Reed, Communications Manager, MenuMax

Today, many operators are reworking their menu prices in order to make it through this tough economic season. If you are planning on changing your menu prices plan two see one of two things. Customers that are willing to accept the price hike and continue to patronize your business, and customers that do not see the value in the prices and therefore stop coming.

So the question stands, how do you make sure your business survives while continuing to please your customers?

I recently read an article in Nations Restaurant News by Michael Lukianoff, that talked about things he says restaurant operators should consider when it comes to changing pricing. Here are the highlights…

Provide Excellent Service

Most diners visit a restaurant because of the food, but one visit with bad service can leave a foul taste in your customer’s mouths. Make sure you regularly educate your staff about menu changes and your guest experience expectations.

Pay Attention to Menu Engineering

How you organize your menu has a big impact on your bottom line.  Make sure that you have a balanced mixture of low cost dishes and premium dishes. Mixing in lower cost options will take away from the sticker shock of more expensive dishes.

Test Your Menu

Conducting a test of the new menu prices will give you a got idea how customers will react when the new menu goes live. Make sure your test measure financial metrics like check average, transactions and mix, and customer feedback.

Utilize Resources

Take advantage of data research and analytics. Technology has made it possible for mom and pop operators to have access to tools that allow them to make better pricing decisions.

Bottom line is, you need to do your research before you change your prices. Know what your food costs are and your customer’s expectations and plan your prices accordingly. Tell me, have you raised the prices on your menu yet?

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