The idea of supply and demand in the restaurant biz is useless. Throw out everything you think you know about this or learned in school. There’s unlimited supply and also unlimited demand (unless you’re on an island or high end resorts where people don’t want to leave like in Las Vegas – customers are willing to spend more money due to convenience).
But more most every restaurant, the real 2 factors affect pricing are distinction and excellence. If you restaurant is serving products and creating an experience that is distinct and excellent, you will never have an empty restaurant and can charge fair prices…but if you don’t fulfill on these two factors, you will be forced to use price as your only marketing tool.
You will need to use coupons and cheap to attract customers.
Pick one area of your restaurant (food, ambiance, service, decor) and ask yourself these two questions.
- Is this distinct and original? (or is this available at multiple other places)
- Are we THE BEST at this? (or are we just good enough)
If you answer yes to either question, GET TO WORK so you can stop couponing and charge more for stuff. Add distinction and be excellent in everything you do!
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