Price your menu like a pro: Tips for peak and off-peak season

I’m often asked by restaurateurs how to price a menu and keep prices palatable despite the rising food and running costs. The trick is to offer better value, provide something extra, and be distinctive.

Price vs. value

Price is what you pay. Value is what you get. – Warren Buffet

Let’s look at this successful businessman’s surname and play a little… a buffet is all about vast options and self-service. Fine dining is all about premium ingredients, superior service, and sitting in a super-comfortable chair in a glorious setting. You’re paying for an experience in either restaurant, not just food.

Every restaurant pays the same price for an onion, but what they do with it and how they present it, creates the distinction between run-of-the-mill and world-class, destination dining.

Where brand value comes in

Value is the sum of real and perceived value. If you then try to add further value, that’s an admirable brand. Some brands demand higher prices because they’ve been positioned as aspirational and luxurious. But how does this affect menu pricing?

Real Value + Perceived Value = Total Value

If a restaurateur wishes to charge more, they need to offer more – not a wider selection or larger quantities, but better value. Value is a perception that sits in the hearts and minds of people, and it varies greatly. If you make people feel more special, they will want to return. And, don’t forget, it costs less for you to attract your regulars than to attract new clientele.

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How to price your menu for peak and off-peak season

The seasons have an impact on the availability of ingredients and the volume of couverts sold.

Restaurants that rely on tourists can offer winter specials to locals at a lower price when they are not as busy. This maintains staff momentum and morale, helps fill the restaurant during quieter times, and encourages locals to support and experience these premium restaurants.

• Peak season: During peak season, you can charge higher prices, but you need to offer something extra in return and focus on providing great service.
• Off-peak season: To attract customers during off-peak season, you may need to lower your prices or offer seasonal specials to encourage the locals to visit more often.

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Tips for pricing your menu

In terms of dishes, it’s essential to balance the lucrative one and the loss-leaders to ensure a profit. In high-end restaurants, diners are less price-sensitive, yet more discerning. For them, the experience needs to feel priceless.

On the other hand, in a value-driven restaurant, guests want to feel like they are getting value for money – or “bang for their buck”.

Some restaurants group their food and wine options in different price categories, while others list their dishes from the most expensive to the least – or the other way around. But what should you do?

Four tips to consider when pricing your menu

1. Consider your target market: Determine your offering and who your market is, then plan and price accordingly.
2. Cost your dishes accurately: Research how customers feel about your menu and keep track of your bestsellers. Are they popular because they are exceptional or because they are considered to be good value? Remember, accurate costing is essential.
3. Consider seasonal specials: If you don’t want to participate in the standard “special season”, consider creating your own unique celebration season where you offer extra value and stand out from the crowd.
4. Scrutinise your menu: Look at your selection of dishes, the most profitable dishes, and those that are so popular that you cannot leave them off your menu. Diners usually choose the dish that catches their eye first, so that’s where you position your most profitable dish – first!

Use this information as a guideline to make the most fruitful decisions for your restaurant. By following these tips, you can price your menu in a way that is both profitable and attractive to diners – regardless of the season.