Woman reading the menu at a restaurant
Decoy Pricing Is How Restaurants Get You To Order Certain Items
Decoy pricing on restaurant menus involves strategic placement of premium and lower-cost items on a menu, with the intention of guiding customers towards more profitable options.
Listing a high-priced item on a menu makes a mid-range product seem more affordable. For example, a $70 wine bottle makes a $35 bottle appear reasonable compared to a $15 option.
Another decoy method is seen in fast food restaurants. Large fries for $4 look like a better deal than a medium portion for $3.50, nudging customers to choose the larger size.
This profit-maximizing tactic, originating in the '80s, subtly manipulates customers' perceptions of value. Being aware of these techniques can lead to more informed decisions.
Decoy pricing is one many strategies used by restaurants. While it may seem underhanded, it reflects a broader trend of psychological pricing techniques across various sectors.