| Prices on everything just keep going up. | | | | won't necessarily be true. You may be surprised by |
| I was in my favorite breakfast spot the other day and | | | | what you find. What are the actual things (their points |
| they had raised the price on the dish I always order by | | | | of pain) that are bothering them most about the menu |
| 20 percent! Now I could see maybe 5 or 10, but 20? | | | | prices, or dining in your outlet? |
| Naturally, that made me wonder about the other menu | | | | Try taking a fresh, new look at what you offer as |
| items, and sure enough, the proprietor had almost | | | | 'value'. In times like these, people think in terms of the |
| unilaterally taken his prices up a full 20 percent across | | | | 'absolute price' not necessarily the overall value |
| the board. | | | | delivered. For instance, a 'bottomless cup' of coffee for |
| Personally, I don't think this was a smart move on his | | | | $1.95, may appear too expensive, compared to a |
| part. I understand that food and fuel are on the | | | | single cup for $1.25. |
| constant rise. Your customer knows that too, the | | | | Try unbundling your menu items. People may have |
| media see to that. | | | | appreciated buying a grouping (e.g. sandwich, fries and |
| I clearly understand that the restaurateur has to try | | | | a drink) in the past; but are now more interested in |
| and pass on as much as he can. But there is a limit to | | | | stand-alone items. This way they may be able to |
| how much the consumer will take in one deft stroke of | | | | exercise more discretion with their pocketbook; while |
| the adding machine. | | | | blaming it on their diet. |
| If you're thinking of raising your menu prices, here are a | | | | In summary, you can apologize for the 'uncontrollable |
| few things to think about first, before you do. | | | | price increases' (be sure to keep them modest and do |
| Firstly, get out and talk with your own customers. | | | | it slowly); offer your most price sensitive customers |
| Spend some time here. Talk to them in the restaurant, | | | | some form of promotional 'deal' if you can. Most |
| in the parking lot and on the street in town. Do some | | | | importantly, always emphasize your restaurant's |
| research. If you have an emailing list, conduct a survey | | | | benefits to the guest. |
| with a few brief questions about prices; have them fill | | | | Lastly, watch the results and behavior of your guests. |
| out a very short (no more than five questions) survey | | | | Pay very close attention to what they are now |
| while in the restaurant...just address the issue of prices, | | | | ordering, and follow up with them to get their opinions |
| to the point, and keep it short. | | | | on your prices without making a big deal of it. Get |
| Get some idea first of what your customers think...and | | | | some feedback as soon as you sneak those prices |
| feel. The assumptions you are holding about them | | | | up a bit. Monitor the situation closely. |