You often hear from restaurant people that a business or accounting degree doesn’t really prepare you for running a successful dining operation. OK — so what about that psych degree your crusty uncle ripped as a waste of time and money?
In the world of sales, there is a concept called emotional pricing. For restaurants, this translates to how much operators can charge for their dishes — especially as they see their own food and labor costs skyrocket — without turning off their cost-conscious customers.
A 2025 James Beard Foundation industry report found that 91% of restaurants raised their prices between 2% and 10% last year — without seeing a profits dip. But those that raised their prices above 15% did see reduced profitability. So there does seem to be a sweet spot.
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