Restaurant pricing strategy : How to decide correct price to grow restaurant business

RESTAURANT PRICING STRATEGY 4 step method to boost sales RESEARCH COMPETITION, TARGET CUSTOMER AND COST OF GOODS SOLD RESEARCH Decide your end goal and target correct customers. Don't compete on pricing. Instead compete on quality of product. Get accurate numbers of cost per serving and monthly COGS. Add desired markup on cost and decide the pricing. IMPLEMENT PRICING AND USE MENU PHYCOLOGY Implement new pricing for a quarter. Increase price effectiveness by bringing IMPLEMENT innovation in food and restaurant atmosphere. Use menu phycology such as combo offers, having no currency signs, unique item names and serving three types of any dish. DO RESULT ANALYSIS AGAINST INDUSTRY BENCHMARK AND BUDGET ANALYSIS Compare monthly sales and cost numbers against budgeted amount. Use industry benchmarks to determine the overall performance. Get marketing reports and find out the best performing marketing channel. Do marketplace analysis and find out the best performing dish. REVISE THE PRICING UNTIL YOU GET OPTIMAL RESULT Take necessary steps to increase price effectiveness. Get rid of loss making items or include them in combo offers. Adjust price as per result. Price may be revised quarterly. Frequent price change makes customer off. Get help of restaurant pricing expert if it seems required. REVISION Read more at https://www.finsprout.com/restaurant-pricing-strategy.