Pricing It Right on Your Restaurant Menu

The right price is the one that guests are willing to pay, ensuring maximum profit for the restaurant. It doesn’t matter how many restaurant management and menu engineering books you read, you will never find clear rules for setting the prices of menu items. Experts advise taking how much you spend on purchasing produce and multiplying this amount by three. However, the best teacher is experience. Despite the fact that there is no precise formula for fixing the right prices, I’ll try to shed light on this question and help you figure out how to price your menu.

Before Setting PricesThe Golden Rule of the restaurant business teaches us that menu creation always comes first. Don’t make any decisions on equipment and interior design until the restaurant menu is ready. At the very least, decide on the cuisine and the concept of your venue.

The process of calculating prices lies somewhere between a science, an art and intuition.

Many factors influence how menu prices should be set. I…