Menu Pricing Strategy

Abstract: Two ingredients in operating a successful commercial restaurant are pricing and marketing the wares. Students and restaurant operators will find the basic information needed on these aspects of the business. Menu presentation covers layout, special features, customer considerations, price changing and general strategies. Pricing methods include copying other operations (not very safe); factor system (raw food cost x pricing factor); prime cost (useful in cafeterias); and actual pricing (includes profit on every item). These practical suggestions are supported by pricing theories. Sample menus illustrate various approaches to luring customers--children's specials, luscious libations, dreamy desserts, and individuality themes. Accuracy in menus is reulated by government guidelines; California law is presented as an example of stringent protection against menu misrepresentation.