A key element of the menu is the price listed for each menu item. Everything costs something. First it costs you, and then it costs your customer. So how do you determine how much to charge for whatever you decide to sell?
You can determine the price range of your menu in many different ways, and all of them can be reasonably justified depending on your concept, menu, and location. But the most important factor to consider is the perceived value for any meal.
Two of the bigger errors that I see restaurants make are under pricing their menu when the customer will gladly pay more and overpricing their menu when the poor products and services they deliver don’t justify the prices. Both are major mistakes.
The prices that you charge will influence the type of clientele your restaurant attracts, the sales volume and profitability of the restaurant, and the frequency with which your customers return. People of lower incomes tend to frequent restaurants with lower pricing while people with higher incomes tend to patronize restaurants with higher prices. Customers tend to be more forgiving of poor service in restaurants that have lower menu prices and less forgiving if the menu prices are high.
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