Restaurant pricing strategy : 4 steps easy method to boost sales
Abstract
Overwhelmed with restaurant pricing decision? Looking for some restaurant pricing strategy hacks? We have discussed the 4 steps of a restaurant pricing decision. Restaurant Pricing Strategy - RIER: Research: You should do basic research to decide the correct pricing. Customer: There are always two types of customers: Price sensitive and price inelastic. Are you able to bring food innovation to charge a higher price?Is your restaurant service top-notch to charge a premium price?Is your staff trained?Do you have a budget to hire top-notch staff?Is your customer price sensitive?Can you spend to build a solid brand to charge a premium price?What is the age of your ideal customer?What are the expectations of your customers? Competition: Ok! So you are not starting a price war. Ask the following questions to know the effect of a price change? What is the overall customer experience?Are we losing customers due to a price increase? Are we getting recurring customers?Are we achieving BEP for a new dish? Marketing effectiveness: Marketing plays a huge role in restaurant pricing. Ask below questions while revising pricing: Is any specific dish making recurring losses?Can we offer a loss-making item under combo?Can we increase the premium dish price by 5% or 10%?What is the reason for the sales decline in a specific menu section?Are we getting enough feedback from a customer?Do we need the help of a restaurant pricing strategy expert? The key is to make necessary revision and implement a new pricing strategy again. Happy customers never hesitate to pay a little bit higher price Good customer experience should be combined with optimal pricing.
