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What They Won't tell You About Menus
Peter Greenberg August 16, 2007PAGES: 1 2
Then there’s the psychology of menu pricing.
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• Price rounding psychology only works with lower-priced items: Someone will buy a $1.99 taco, but not one sold at $2. On higher priced items at upscale restaurants, it’s all called hip, minimalist pricing, and items are rounded up. That big steak in the fine dining restaurant isn’t $38.95, it’s $39.
• What’s the price barrier? $20 is the tipping point for casual dining restaurants. You won’t see many items at PF Changs or Cheesecake Factory above $19.99.
• Restaurants have also learned that pictures sell food, but pictures also pull down the perception of overall quality. Denny’s and IHop use pictures, but Red Lobster is becoming more upscale and stopped using photos last year. Their price points – and their profits – went up.
Last but not least tasty, there’s dessert. Since everyone claims to be concerned about extra calories, a number of restaurants have redesigned their menus to offer “bite-sized” desserts.
Lower prices? Not necessarily. Fewer calories? Not necessarily. Replacing a large piece of coconut pie with a bite-sized portion, “presented” with slivers of brownies, or crème brulee, is a reason to raise prices, not lower them. As for calories…
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