Whether it\u2019s a $5 burger or a $25 steak, operators are making menu space for both as a way to lure in two types of customers: those pinching pennies and those who want to splurge. <\/p>\n\n\n\n
It\u2019s an old-school strategy that operators refer to as barbell pricing \u2013 when a restaurant attracts customers with promotional deals while simultaneously pushing higher-end items. Most recently it has been used to offset pandemic-related losses and current inflation. And for many, it\u2019s working.\u00a0<\/p>\n\n\n\n
Joe Violi, a business solution specialist in Northern Michigan, said he has seen some success among operators in his region.<\/p>\n\n\n\n
\u201cPlaces that have the most success moving forward are targeting all different price points,\u201d Violi said. \u201cThey are trying to target customers across different price points.\u201d<\/p>\n\n\n\n
The hope is that barbell pricing will counter the weight of inflation by keeping profit margins even for the operator, and hopefully locking them in around a happy medium, according to a recent article in Tasting Table<\/em>. But, Violi said, while it has been working for some, it may not work for everyone. For example, a special-occasion restaurant likely wouldn\u2019t promote discounts. <\/p>\n\n\n\n \u201cAt the end of the day everything has to be done on a case-by-case basis,\u201d he said. \u201cThere is no one fit. It may make sense for some places and then not for others.\u201d<\/p>\n\n\n\n Timothy Tejuco, a business solutions specialist in the Vancouver area, agrees that barbell pricing is definitely gaining traction again. <\/p>\n\n\n\n \u201cIt\u2019s been a tactic in restaurants for a very long time,\u201d Tejuco said. For the most part, he is seeing barbell pricing at fast-food or less expensive restaurant chains. That jives with what Tasting Table<\/em> has reported, citing Red Robin, where guests can buy a $10 Gourmet Meal Deal or spend $15.99 on two limited-edition cheese lovers’ burgers.<\/p>\n\n\n\n Another version of barbell pricing is also catching on, Trejuco said. <\/p>\n\n\n\n \u201cOperators are adding upscale additions to typical menu items and it\u2019s becoming really big,\u201d he said. <\/p>\n\n\n\n For example, a menu can promote a great pizza listed at its normal price, but a pizza topped with lobster and caviar will be on the same menu for triple the price. <\/p>\n\n\n\n \u201cPeople will always go out and get what they want, but can add something upscale,\u201d he said. \u201cIt\u2019s happening with everyday foods.\u201d<\/p>\n\n\n\n While it\u2019s likely the pricing tactic will continue to trend, operators should be cautious that the strategy could backfire, Tejuco said. <\/p>\n\n\n\n \u201cThere is a risk of losing some sales to barbell pricing,\u201d he said. The discounted items may draw sales away from a $50 steak if a $10 burger is advertised on the same menu, Tejuco said. And some want the experience of dining at a place where discounted items aren\u2019t an option. \u201cPeople are going to a certain place for a reason. If they wanted cheaper food, they would get takeout,\u201d he said. <\/p>\n\n\n\n Violi said he has watched restaurant operators try various tactics like barbell pricing over the past couple of difficult years. But, in the end, there is no one tactic that works, he said. It\u2019s best for operators to stay focused on what really matters: Great food and exceptional customer service.<\/p>\n\n\n\n \u201cEveryone is losing focus on what matters and they are scrambling for solutions,\u201d he said. \u201cIt\u2019s a tornado of things that everyone is dealing with. It\u2019s a difficult time and people need to adapt and figure a way out of this.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" Barbell Pricing Targets Customers From Both Sides of the Spectrum Whether it\u2019s a $5 burger or a $25 steak, operators are making menu space for both as a way to lure in two types of customers: those pinching pennies and those who want to splurge. It\u2019s an old-school strategy that operators refer to as barbell […]<\/p>\n","protected":false},"author":20,"featured_media":30250,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[122,123,112,69],"tags":[],"class_list":["post-30249","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-catering-small-business","category-hotels-hospitality","category-restaurant-bars","category-running-your-business"],"acf":[],"yoast_head":"\nCaviar on Pizza, Onion Rings on Burgers Drive Up Price<\/h2>\n\n\n\n
Barbell Pricing Isn\u2019t Foolproof<\/h2>\n\n\n\n