The New York Times ran a story recently about Gregg Rapp…
““The New York Times ran a story recently about Gregg Rapp, a restaurant consultant, who gets paid to work out the pricing for menus. He knows, for instance, how lamb sold this year as opposed to last year; whether lamb did better paired with squash or with risotto; and whether orders decreased when the price of the main course was hiked from $39 to $41. One thing Rapp has learned is that high-priced entrées on the menu boost revenue for the restaurant—even if no one buys them. Why? Because even though people generally won't buy the most expensive dish on the menu, they will order the second most expensive dish. Thus, by creating an expensive dish, a restaurateur can lure customers into ordering the second most expensive choice (which can be cleverly engineered to deliver a higher profit margin).1””
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Creating a high-priced menu item influences customers to choose the next expensive option, raising overall profit.
In simple terms: Expensive dishes steer customers to pricier choices.
Key Takeaway
Use premium items to boost sales of high‑margin dishes.
Themes
pricing strategy
consumer behavior
restaurant management
Mood
analytical
strategic
Type
business
psychology
When to use this quote
- restaurant menu design
- profit optimization
- customer decision making
Key Concepts
anchoring
price perception
menu engineering
Questions to Reflect On
- How can menu design balance perceived value and affordability?
- What psychological triggers affect dish selection?
A Different Perspective
If customers perceive the expensive dish as unattainable, they may avoid ordering altogether.