One of the questions I get most is about restaurant pricing methods. I always suggest the cost-plus pricing method where restaurateurs need to calculate all their fixed and variable costs and then add their profit margin. If you need help in calculating your fixed and variable costs, watch my video on restaurant break even point.
What you need to be aware, and that is what you will learn on this week’s video, is that price and brand is directly related to your restaurant customer perception of taste. Meaning that, if your restaurant is priced higher or it has a strong brand associated with it, your customers will without knowing appreciate more your food. That is why I always advise my clients to don’t undercharge, because if they do it, their customers will not appreciate as much as they should their Chefs work at the kitchen.
Watch the above video for the results from a Cornell University study that proofs exactly that the perception of food quality is directly related to its selling price.
If you have any other question on restaurant pricing methods, please leave a comment below and I will try my best to answer it.