https://www.youtube.com/watch?v=5_BkkadC2Ok After you've decided what is going to be on your menu, you have to start thinking about what everything is going to cost the customer. You only have one shot to make an impression on guests and the price point of your menu can have a big impact on their experience.
"They will have just signed the check and they’re going to make a judgment, 'Was it worth what it cost me?"
Above all else, you need to be aware of the perceived value of what you offer in relation to what it is costing the guest.
If a guest tries your food and decides that they would pay more than what you charge for the same experience, you have done a good job.
However you decide to price your menu, it will have a massive effect on your business. Aside from the cost of food, the menu price point should also reflect the cost of the over all experience including the staff and setting.
Consciously or not, guests are constantly appraising the dining experience and comparing it how much they are paying.
"So the first thing you need to determine is 'What price points match the experience that you’re delivering to your guests?"
Another thing to consider is what type of service you will offer your guest. The perceived value of the food will change depending on whether the food is tossed across a counter or delicately placed on a table cloth.
The type of material the food is served on may also play a role in determining a guest's opinion on the value of your food. Typically, something served on fine china will be considered more valuable than something served on a paper plate.
After you've considered perceived value, it's time to think about what the food is actually costing you. Be careful: certain items like organic greens can actually cost more than protein. It is essential that you are aware of your food cost and price your dishes accordingly.
Because different items will sell in different quantities, it's important that you adapt your pricing to accommodate your guest's tastes.
"The things you sell more of, have a more profound impact, proportionally, on your profitability. So when you’re thinking about pricing, you have to use it to work with your sales mix so that the entire revenue works for your food costs."