Deciding on Menu Prices – How to Jet Yourself into Profit.

Everybody knows that the restaurant industry has one of the greatest fail rates of any service-related field. Think about it; when was the last time you heard of the immense attrition facing massage therapists? Taxicab companies? Movie theatres?! So why not start taking a page from one of their books and adapt our, considerably less-successful, marketing and pricing schemes?

One of the more lucrative and unique of our peers is the Airline industry. Even with the ever-increasing, ever-confusing, regulations related to the ‘war on terror’, companies such as WestJet, British Airways and Delta still manage to fill a remarkable amount of seats. Restaurant Business magazine recently broke down four great high-flying promotional pricing approaches that could easily be redesigned for foodservice. Of course, they do warn you not to take it too far…Don’t forget what the meals up there taste like!

And once you’ve decided HOW you’re going to price your menu effectively, you can actually choose those prices. Here’s a great description of the four most commonly applied pricing formulas. Just determine what it’s going to cost you, or decide how much you want to make, plug the number in, and ta da! Instant menu prices.

Happy Pricing!

(And, remember, if a Captain Kirk look-a-like tries to push you into some sort of priceline negotiation, just stand your ground!)