When you price items on your menu, you want to set the price reasonably. You need to find the sweet spot that allows people to purchase food from you without giving them so much of a deal that you take a loss. Finding the best menu pricing strategy may seem difficult at first, but there are many factors to consider.
If you’re wondering how to “market my restaurant”, you need to look at the way you price items on your menu. One of the best marketing strategies you can use is adjusting the price point of certain food items.
Please continue reading to learn our top seven tips in menu pricing strategy to transform your sales. In addition, we will discuss the types of restaurants you have and how to price them accordingly based on your restaurant style.
Compare Your Prices With Related Restaurants
One of the best ways to determine your menu prices is to look at your competition. If you have price points severely different from your competition’s, it could drive customers away. You’ll want to look at the price of menu items for local businesses to determine the market for your menu.
When participating in restaurant management, keeping up with menu prices and navigating your surroundings are important. For example, if you’re selling a steak that’s the same quality as someone from down the road but twice the price, people are less likely to visit your establishment.
Have Weekly Menu Specials
A popular menu pricing strategy most restaurants use is to have weekly specials. For example, if you run a pub, you could have $2 beers on Tuesdays or something along those lines. No matter your restaurant style, there is something on your menu that you can change into a weekly special.
Having weekly specials is a great way to price your food and bring in more business. Hosting your weekly menu specials on weekdays instead of weekends would be best to bring in extra business when it’s slow. If you have a popular restaurant, you’ll unlikely need a weekly special on the weekend.
Increase The Price Of Rare Menu Items
When something is hard to access in your area, you can increase its value of it on your menu. People who love that menu item will go to your restaurant and pay extra to enjoy it if they have trouble accessing it elsewhere. For instance, if you have a cuisine out of the country that isn’t easily accessible, you can raise the menu price.
However, if you increase the price of your items, you must ensure that they meet quality standards. People will visit your restaurant to eat menu items they can’t get elsewhere, but they will only return if the quality is good. Bad quality food at a high price can ruin your restaurant’s reputation and tank your online reviews.
Keep Your Restaurant Type In Mind
It’s important to remember that there’s a big difference between fine dining and family-style diner prices. If you’re charging $50 for a plate of eggs and toast, then people aren’t going to visit your restaurant. Alternatively, running a fine dining restaurant with extremely low prices can hurt your profit margin and create suspicion among your clientele.
You should invest in a restaurant expansion if you receive plenty of business. The more people you can see in your restaurant, the better experience everyone will have and the more money your restaurant will make. Restaurant extensions can also pose a great menu pricing strategy because many people may look forward to the expansion, so you can increase your prices.
Consider Your Food Quality
The most important part of running your restaurant is the restaurant kitchen. The food you supply your customers will impact whether or not they return. So, if you provide low or average-quality food, you’ll need to price things accordingly. All food is not made the same, so if you run a fast food joint, you’ll need reasonable prices.
Customers want to avoid overpaying for their food. If you charge high prices for your menu items, you must ensure that they meet quality standards. Unfortunately, things can happen in the kitchen that can lower your food quality. If a big mistake with the food impacts the quality, you should offer a discount to the customer so that they return.
Avoid Money Symbols on Your Menu
One of restaurant owners’ most common business mistakes is adding cash symbols to their menus. Even though it’s important to tell people the price of food items, you should put the dollar sign away from the number. Print the number next to the food item, and people will know what you’re talking about.
Adding a money symbol to your menu can make people feel like they’re spending more than if you don’t add the symbol. People are more likely to order more menu items if you leave the simple off the menu. This rule applies to any currency type, not just USD.
If you price your menu right, you can give discounts to people without losing your profit. Providing people discounts is one of the best menu pricing strategies you can have. When people feel like they’re getting a good deal on something, they’re more likely to order more things off the menu. The following are popular discounts you can add to your menu prices.
- Buy one get one free
- Happy hours
- Loyalty card discounts
- Special occasion discounts
- Promotional discounts
Providing a discounted rate sometimes is a great way to get people to try your restaurant and encourage them to return.
Finding an excellent menu pricing strategy can change your sales and help you upgrade your restaurant. Choosing the price of your menu items can be stressful if you don’t look at your competition for guidance. You want to ensure that people feel like they’re getting a reasonable deal for the food you deliver to their table. People feel like your restaurant ripped them off, they’re unlikely to return, and they might leave a bad review.