Psychology of prices in a restaurant menu: techniques to maximize perceived value

The psychology of pricing is a well-documented field in marketing, but underutilized in the restaurant industry. Yet, the way you present your prices on your menu – both physical and digital – has a direct impact on your customers’ choices and their average basket. Studies from Cornell University have shown that simply removing the euro sign (€) from a menu can increase average spending by 8%.

Price anchoring is one of the most powerful techniques. Place your most expensive dish first in each category or prominently on your menu. This “anchoring” dish psychologically makes the subsequent dishes (at 60-70% of its price) seem more affordable. A steak at 28 euros in the top line makes the ribeye at 19 euros seem very reasonable. Without this anchoring, the ribeye at 19 euros might seem expensive. This technique is routinely used by fine dining restaurants.

Are prices of .90 or .95 (18.90 euros vs 19 euros) effective in restaurants? Studies are nuanced. In fast food and delivery, prices of .90 seem to increase sales because they are perceived as “less expensive.” In fine dining or even bistronomy, rounded prices (19 euros rather than 18.90 euros) give an impression of quality and transparency. Adapt your strategy to your positioning.

The description of dishes also influences perceived value and therefore the price to charge. A “Salmon Fillet” sells for less than a “Cold Smoked Scottish Salmon with Dill Cream and Lemon Zest from Menton.” Studies show that evocative descriptions can increase the perceived value of a dish by 20 to 30%, and therefore justify a higher price. Invest time in your descriptions: it’s one of the highest return on investment in the restaurant industry.

The visual presentation of the menu also affects choices. Eye-tracking studies (gaze tracking) show that readers’ eyes first focus on the upper right corner of a menu (with the page open) then on the center. These “hot spot” areas should contain your most profitable dishes, not necessarily the least expensive or most expensive. A dish at 16 euros with a 70% margin is more profitable than a dish at 22 euros with a 40% margin.

For digital menus on Uber Eats and Deliveroo, the principles of psychological pricing apply with some nuances. The platforms tend to display prices uniformly, limiting certain visual techniques. However, the order of display (the first dishes in a category are seen first and clicked more often) and the descriptions remain effective levers. The quality of the photos, in the absence of direct visual comparison with other restaurants, also strongly influences the perceived value.