Population Statistic: Read. React. Repeat.
Saturday, October 21, 2006

How much is a fine dining experience worth to you? How does two Andy Jacksons sound to you — sans the side dishes and drinks? More and more upscale (and merely upscale-ish) eateries are breaking the $40-entree price barrier, amid much grousing.

The real genius part about it, though, is the effect it’s had on lower-priced menu items:

But what makes the rise of the $40 entree so significant is not just the price creep, it’s the sophisticated calculation behind it. A new breed of menu “engineers” have proved that highly priced entrees increase revenue even if no one orders them. A $43 entree makes a $36 one look like a deal.

“Just putting one high price on the menu will take your average check up,” said Gregg Rapp, one such consultant. “My mom taught me to never order the most expensive thing on the menu, but you’ll order the second.”

Pretty shrewd maneuvering. Think about that the next time you order a $25 plate of burger and fries at Hard Rock Cafe.

by Costa Tsiokos, Sat 10/21/2006 06:41:08 PM
Category: Business, Food
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