Create an enticing and effective menu. It involves what your company offers. It’s a strategic tool that, when used correctly, can influence your customers’ decisions and increase sales.
This article will explore the psychology of menu choice, explain concepts such as the ‘choice paradox’ and the ‘priming effect’, and provide tips on how to use this knowledge to design a compelling menu.
Understanding the paradox of choice
The paradox of choice is a concept developed by psychologist Barry Schwartz, which suggests that while some choices are clearly better than none, more is not always better than less.
Applied to the menu context, too many options can overwhelm customers and make the decision-making process stressful, which can lead to less satisfaction. For example, one study found that if a grocery store offered 6 different jam samples, it sold ten times more than if it offered 24 samples.
The key is to find the right balance. Offer enough variety to satisfy different tastes, dietary needs and preferences, but not so much that it paralyses decision-making. Try to offer a variety of choices, but limited to perhaps 5-7 options per category.
The priming effect
Priming is a psychological phenomenon in which exposure to one stimulus influences the response to another stimulus.
In a menu, the priming effect can be achieved through the strategic use of pictures, descriptions and the order in which items are listed. High quality images of food products can stimulate the senses and make these products more appealing. Detailed, appealing descriptions can do the same. For example, the description of a dessert ‘decadent Belgian chocolate cake’ can be more enticing than simply ‘chocolate cake’.
Similarly, the sequence of products can have a stimulating effect. People often remember best the first and last products in a sequence, known as the ‘sequential position effect‘. Therefore, place high-margin or characteristic dishes at the beginning or end of a category to make them more memorable.
Positioning high-profit items
Strategically placing high-margin products on your menu can help drive customers towards these choices, thereby increasing your revenue.
High-margin items should be given a prominent place on the menu. According to the ‘Golden Triangle’ theory, customers’ eyes naturally go to the top right corner of the menu first, then to the top left corner and then to the centre. Placing high-margin products in these areas can help to draw attention to them.
These items can also be drawn attention to using boxes, icons or different colours. For example, a small icon next to a product saying “Chef’s special offer” can make it stand out and feel special.
Using descriptive labels
Descriptive labels can influence customers’ perception of the food, making it more appealing, and can justify a higher price.
A menu labelled ‘juicy grilled chicken breast with lemon herb sauce’ sounds more appealing and is worth paying a little more for than simply ‘grilled chicken’. In addition, inscriptions that point to the origin of the recipe, such as ‘grandma’s favourite apple pie’, can evoke nostalgia and warmth, making the dish more appealing.
Leveraging price anchoring
Price fixing is a psychological pricing strategy in which the price of one good influences the customer’s perception of the price of another good. If used correctly, it is a powerful tool that can have a significant impact on the profitability of your menu.
Here are more tips and tricks to make the most out of this strategy:
- Decoy pricing: You can include an expensive ‘decoy’ dish on your menu. This dish might not sell in high volume, but its purpose is to make other less expensive but still high-profit dishes seem more reasonable.
- Bundle pricing: Offer bundles or meal deals where customers can get a group of items for a price that seems less than buying individually. By anchoring the price of individual items, the bundled price appears to be a great deal.
- Comparison pricing: Place a higher-priced item next to a similar, lower-priced one. The higher-priced item serves as an anchor, making the lower-priced item seem like a bargain.
- Subtle price increases: If you need to raise prices, do so subtly and gradually. A sudden, significant price increase might cause customers to reconsider, but a small increase is less likely to be noticed, especially when anchored against the memory of the previous price.
- Remove the currency symbol: Studies have shown that removing the currency symbol from prices can lead to increased spending. When customers see a price without a currency symbol, they’re less likely to anchor the price to their preconceived notions about cost.
- Price precision: Consider using precise numbers rather than rounding prices to the nearest dollar. For instance, price an item at $9.97 rather than $10.00. The odd pricing makes the price appear carefully calculated and gives the impression of value.
Remember that the purpose of pricing is not to cheat or mislead customers, but to guide their perception of value and help them make decisions that lead to a satisfying dining experience.
Utilizing menu layout and design
Menu layout and design can also have a significant impact on customer choice. Paying attention to visual cues, colour psychology and typography can help direct customers’ eyes towards the dishes you want to promote. Mastering the art of product placement is important to increase restaurant sales.
As mentioned above, the ‘golden triangle’ is a useful concept to follow when designing a menu layout. The use of dividers or boxes to highlight special dishes can also draw attention to them. Colour and typography can also influence perception and choice. Warm colours such as red and yellow can stimulate the appetite, while cool colours such as blue and green can calm and refresh.
In addition, the font used for each product may also play a role. Strong or larger fonts can draw attention to certain products, while hard-to-read fonts can discourage customers from ordering those foods.
Balancing variety and complexity
The variety and complexity of the menu can also affect customer choice and satisfaction. It is important to find a balance that suits your business and your customers.
While variety can attract a wider range of customers, it is important to avoid over-complicating the menu. A complex menu can intimidate and slow down the ordering process. It can also create operational difficulties in the kitchen.
A simple solution is to offer a range of main courses with customisation options. This allows customers to tailor dishes to their preferences without overwhelming them with too many choices.
Effective menus
In conclusion, developing effective menus is a strategic process that involves understanding human psychology and using this knowledge to influence customer choice. Concepts such as the ‘choice paradox’ and the ‘priming effect’, strategic placement of high-margin items, the use of descriptive labels, price reinforcement and careful attention to menu layout and design can help to create a compelling menu that enhances the dining experience and increases sales.
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