The restaurant industry is a busy and cluttered space. There is no shortage of restaurants and lounges around, and innovation along with top-notch customer service is a must to stand out from the crowd. As the competition becomes extreme in the restaurant space, cafes and lounges come up with out-of-the-box ideas and themes to attract customers and increase their sales. A thematic ambiance for your restaurant is no longer enough. The theme and concept need to be reflected in the restaurant menu and price as well. Among other things, restaurant menu innovation and price innovation becomes a must for restaurants to attract customers and increase sales. As trends change and the industry evolves, innovation in the menu pricing methods become necessary for restaurants to survive. If they do not change with the changing trends, it is a matter of time before which they will die out. To know more regarding how trends affect innovation in restaurant space, read this research paper.
How Restaurant Price Innovation Attracts Customers And Increases Sales
Introducing changes in the price, without disconcerting the customer is a humongous task to achieve. Price innovation usually includes a new discount or a combo meal, and that can damage the restaurant’s revenues. However, restro-pubs are now coming up with new innovative menu pricing methods that are profitable for the restaurant, as well as pocket-friendly for the customers. Plus, the something-new factor brings in new business as well.
‘Bar Bar Pune,’ has come up with an innovative pricing strategy. The customers pay less for more drinks. Termed as a wholesale bar, Bar Bar charges its customers less if they order drinks in bulk. The bar has been receiving much attention on social media lately, as customers are intrigued by the idea of paying less for a whole lot of drinks.
Another interesting pricing model is the economies of the scale model, where the number of people drinking them decides the price of the drinks. Lounges such as the Bar Stock Exchange in Mumbai, Café Dalal Street in Delhi among others have been offering drinks at dynamic prices. The prices of their drinks fluctuate, based on the supply and demand of the drinks, much like an actual stock exchange. Such price innovation is a great way to earn profits while attracting customers. Different menu pricing methods have a direct impact on restaurant sales.
The Buy One Get One offer on pizza, and Happy Hours price on the drinks in bars and pubs are some of the most famous examples of menu innovation and dynamic pricing to attract customers.
How Restaurant Menu Innovation Attracts Customers And Increases Sales
The restaurant menu is one of the most crucial elements in a restaurant business and must not be ignored. This means that as trends and times change, the restaurant menu must be innovated as well. Menu innovation means analyzing the menu, the menu pricing, eliminating the dishes that do not sell, improving the design towards the dishes that do sell and adding new dishes to your restaurant menu.
Big chains like KFC, McDonald’s, and Dominos, are always introducing new elements in their menu, or rehash their old menu to attract customers.
Last year Dominos had tied up with celebrity chef Vikas Khanna and launched the complete Chef’s Inspiration range of Exotic Italian Pizzas. Recently, KFC launched its 5-in-1 meal box at Rs 149 only. Even though they didn’t introduce any new dishes in the meal box, the box was catchy enough to attract customers.
As the customers become used to eating the same things at all restaurants and food outlets, improvising and innovation seem to be the only ways to stand out from the crowd.
Introducing a Seasonal Restaurant Menu
Introducing a seasonal menu is also a great tactic to increase restaurant profits. The Pizza Express has launched a special summer menu with refreshing drinks to beat the summer blues. A seasonal menu works very well as:-
- The addition of something new to the menu adds to the curiosity of the customers and propels them to try out the new items.
- Seasonal menus make use of the ingredients readily available in the season and hence help reduce the overall food costs.
- A seasonal menu also instills a sense of urgency in the customers’ mind that the dishes would only be available in the current season, and should not be missed.
Achieving the ideal balance between the customer-friendly and profitable price is a difficult task to achieve. The restaurants that offer food and drinks cheaper than their counterparts are often only able to sustain the business because of the large footfall achieved because of low prices. Therefore, choosing a sustainable pricing model that is also appealing to the customers, and a delicious restaurant menu becomes imperative. Find out the correct way to pricing your restaurant menu here.