menu pricing and strategy

Menu pricing and strategy Webster’s defines menu as “a detailed list of food served at a meal.” This definition came out of a kinder, gentler time for the restaurant owner, a time when competition was less fierce, tax laws were less rigid, and operation was not measured by yield management, and the patrons knowledge and expectations were lower. The role of the menu in a food service operation far exceeds the basic dictionary definition. …

…considerations for the price will include price-value perceptions of customers, and this price-value consideration will include whether they have received their money’s worth when they pay their check. The objective of any pricing system or method is to arrive at that combination of prices that maximizes customer counts (demand), improves the average check, and improves contribution to margin while achieving the lowest overall food cost percentage relative to optimizing revenue and profit. ------------------------------------------------------------------------ **Bibliography**