13+ Price Menu Designs and Examples – PSD, AI

Several business companies have emerged these days because of the increasing demand by the public. This is true especially to the entities that cater the basic needs of people, like food. These entities may be restaurants, cafes, eatery, diner, steak house, snack bar, pizzeria, among others.

These places are usually where you can see lots of people especially during weekends or on holidays. Hence, the management and key personnel in these entities must work hard in their marketing to appeal people, to maintain their loyal customers, and to increase their profit. You may also see sumptuous seafood menu examples.

One aspect in marketing that they must be concerned of is the pricing of their products. They must not only be concerned of the pricing itself but also be concerned of the presentation of their pricing through their menu.

Attractive menus are vital in a company’s promotion since it is a guide for the people to know what the restaurant is offering, and these are also a way that they can have a quick glimpse of the food of the restaurant. These must contain the personality of the entity, and thus, pricing menus are something that higher management must work on.

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Effective Menu Pricing Strategies

Before creating your own menu, you must know first the importance of having a simple menu for your restaurant, cafe, etc. Menus are important because customers form their first impression through them as they are the first thing that are handed to customers before making an order.

The design and presentation of the menu also have an impact to the credibility and character of your simple restaurant. If you have a well-designed and good-quality menu, it is presumed by the customers that you are devoting time in every aspect of your entity and that customers are among our top priorities.

On the other hand, if your menu looks awful and that it seems like it had not been renewed and replaced for years now, the customers impression would be is that you are not giving time on your marketing and promotion and you are not dedicated in improving your business. Hence, be mindful in the design and presentation of your attractive menu.

On the menu itself, you must also present it in a way that people will be tempted to purchase your tasty food. Design it in a manner that is enticing to the eyes and that people will be satisfied that the food that they order is more than what they pay for. Make them feel like they get more than what they expected to have.

Below are several menu pricing strategies that are proven effective to allure people to order more than what they are planning to order, thus increasing your company’s profit.

1. Food Cost Percentage

What is a food cost percentage? Food cost percentage is simply the the total food costs your incurred divided by your total sales. It is said that a financially healthy restaurant has food costs between 25% and 35%. This means that in every peso sale of your food, there is a corresponding 25% or 35% cost. Hence, the remaining 75% or 65% is your gross profit. Note that the lower the food cost percentage, the higher the gross profit. You may also see examples of lunch menu designs.

If you would want to achieve a 25% food cost percentage, you must divide your total cost by 25%, and that will be the selling price for your menu. For example, if you incur a cost for $100, then $100/25% is $400. Hence, you must sell your food at $400 to have a desirable food cost percentage and to have a sufficient amount of gross profit, which is $300.

2. Food Cost Percentage vs. Gross Profit Margin

Now, you already know how to compute the food cost percentage. Next is we will compare it with the gross profit margin. For example, if you are selling a fruit salad for $10 and your food cost is $5. The food cost percentage 50%, which is higher that the desirable percentage which is 25% or 35%. You may also like takeaway menu designs and examples.

And remember, the lower the food cost percentage, the higher the gross profit. On the other hand you also have a fruit mix with a selling price of $20 and with food costs of $12. The food cost percentage for fruit mix would be 60% which is way higher than that of the fruit salad.

However, you must let us take a look at the gross profit margin of each item. Gross profit is computed as total sales less total costs. For the fruit salad, the gross profit is 5, which is $10 less $5. For the fruit salad, it is $8, which is $20 less 12. You may also check out barbecue menu examples.

If you would take into consideration only the food cost percentage, it is most likely that you missed out on the opportunity of selling items which tends to be more profitable when it comes to their gross profit margin.

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3. The Impact of Labor Costs

In the pricing for your elegant menu, you must also take into consideration the labor cost of your menu. You might choose those menu that are pre-made and you only need to order them for a price a little higher that you will buy it on your own and let your staff prepare them. The labor of your staff plus the ingredients you bought maybe higher than if you just buy pre-made ingredients. Think carefully before deciding to whether to make or to buy.

4. Calculate Every Menu Item Cost

When you are pricing your modern menu, you must take into account every menu item cost. For example, in your ingredients for a certain menu, you must inspect each of them in case there might be an increase of the cost of some ingredient but the price in your menu is constant. Update your menu once in a while to maintain a reasonable profit.

5. Put the Dollar Signs in a Subtle Way

Marketers suggested that dollar signs must be placed in your menu in a subtle way or never place a currency at all. The price can only remind people that they are going disburse money, and it sends a subconscious message that your food is expensive. It is recommended that you only place the numbers as an amount of the menu without the currency at all. You might be interested in coffee menu examples.

6. Include Pictures

Obviously, people got attracted to pictures. Thus, in your menu, always include the corresponding picture of your menu. Do not just settle for any photo or a photo with less quality, but take a photo of your actual menu with a good-quality camera and design them well either with the help of a layout designer or you may do it yourself if you are confident enough that you can do it on your own. You may also see pizza menu samples and examples.

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7. Based on Target Audience

A lot of pricing strategy advice would tell us to price our items for a cent lower, for example $199 or $299, to make people think that they will just be purchasing them for an amount a little more than $200 and $300, respectively. However, you must also consider your target audience. Some people aspire for a luxury, and the above strategy might not work. You may also like salad menu samples.

8. Analyze the Competition

Take a look at your competitor’s price and compare it to your pricing. Too high prices would make your customers complain. On the other hand, too low prices would make your customers think that you are using low-quality ingredients. Hence, settle for a price that can match the quality of your food. You may also check out pasta menu designs and examples.

9. Decoy Method

Decoy method is a popular pricing strategy in which you give your customers more than one variation of your popular menu item. The price for each option is different, of course. Studies have shown that customers will often choose the middle option or the best option to treat themselves. This may seem manipulative, but it isn’t at all. People are free to choose which option would they prefer. You might be interested in typography menu examples.

10. Menu Description

In presenting your menu, it is not only about the prices that matters; it has also something to do with how your describe your dish. It is said that the more you describe your dish, the more value the customer perceives for your food which will lead to increased sales and profit as well as a better brand perception. You may also see chinese food menu designs & examples.

11. Seasonal Menu Pricing

Also refresh and renew your menu seasonally and never miss out the opportunity to showcase the freshness and flavor of seasonal food. Customers will also perceive seasonal menu to be priced higher, so it is your opportunity to charge more per menu item. You customers will sure be excited of fresh and new menus so offer to them what they have longed for.

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Final Words

Whether you believe it or not, a menu creates a great impact to the profitability of your business for it is the first thing that a customer would look for before he or she would order anything. It also serves to give interest to the people on what the restaurant or any food entity is offering. Thus, never take your menu for granted. You may also like cafe menu designs.

In pricing your menu, marketers found ways on how to make it an effective marketing tool which can help you increase your profit. The different menu pricing strategies are as follows: food cost percentage, food cost percentage vs. gross profit margin, calculate every menu item cost, put the dollar signs in a subtle way, include pictures, based on the target audience, analyze the competition, decoy method, enhancing your menu description, and lastly, seasonal menu pricing.

These strategies are proven effective on giving appeal to the people, alluring them to order more than they intended.

So, do not be left out in the competition and create your own pricing menu now! The examples and templates of pricing menu above can surely help.

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