So you’re setting up a new restaurant or recreating your menu. You have so many different things to think about, but did you know that pricing is one of the key marketing factors for any product (after you’ve been blown away by our menu covers and boards, of course!)? Think about it, it’s probably the first thing your diners will consider and it will certainly send a message about who you’re trying to appeal to and the quality of the food. Here are a few tips to make this a smoother and more simple process.
To price your food and drink menus effectively, you will need to consider a list of outgoings which will affect your food cost price. This includes the actual cost of these ingredients per plate, energy bills, rent, wages, VAT, equipment and even the cleaning, cooling and cooking of food. Furthermore, it is important to consider the competition around you – how do your competitors’ prices compare to yours’? You not only need to provide a professional service, but keep prices competitive so that people come back.
Take notice of the area you are working in, if the demographic of your surrounding population are wealthy, your prices should reflect this and vice versa. That way you can ensure to allow yourself and your customers the best deals.
Furthermore, when determining costs, it is important to calculate your profit for each menu item per portion. This should include not only the main ingredients but also the herbs, condiments, oils and seasonings used. That way you will never make a loss on your food.
Consider the cost of your best sellers. If you have a dish which excels above the rest, why not make the most of this? You may want to create a specials’ board so that you can try new dishes and see how your customers react. This would give you a better understanding of how to price meals according to the demographics of your current audience and possibly attract new customers. This would also allow you to see what your best sellers are and possibly add them to your permanent menu.
Knowing your base costs, doing market research and being open to change are the key ingredients to pricing a successful menu.