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How bars and restaurants make you spend more money



The menu of a restaurant is not just a list of food and drinks, it serves as a clever marketing tool that guides its guests into ordering what the restaurant wants to sell and subsequently makes more money.

The expensive entrée on the top of the list
A high-priced entrée on the top of the list serves as an anchor point. The Restaurant does not intend to sell this entrée as it merely serves to create the impression that the subsequent entrees are not as expensive. This strategy tempts customers to order the second most expensive dish that could also be more profitable to the restaurant.

A descriptive menu increases sales
Research by Wansinkj et al (2001) found that the more vividly the dishes and drinks are described the more sales increase, up to 27%. Attributes like textures, flavours, the origin or quality all contribute to an increase in sales.

Offering meals in two sizes
Sometimes meals are offered in two sizes however the customer has no idea what the difference is. The customer is lured to the smaller portion because it is cheaper. The restaurant wants to sell the smaller portion because it is more profitable than the bigger portion.

The display of the price
Have you been in bars or restaurants where the price on the menu is either displayed without the $ sign or written out in words? That means that they are applying pricing psychology. Here are the 3 options in which price can be displayed on a menu:

Numerical with dollar a sign: $10
Numerical without a dollar sign or decimals: 10
Displayed in words: ten

Researchers from Cornell University found that not displaying the dollar sign or just writing the price out in letters makes us forget about the price; we no longer connect the number with money and subsequently end up spending more.

Next time you go out to a Restaurant or Bar have a look at their menu carefully and see if you can spot some clever marketing strategies that lure you in to spending more.

 www.octalonegotiation.com


#negotiationskills #restaurantmarketing #negotiation #behaviouraleconomics

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