Menu pricing across 31 branded chain, pub and fast food restaurants increased by just under 2% in the year to Spring/Summer 2018. The biggest rise was seen in the pub channel, with an average increase of 1.9%. Operators are being sensitive to pressures on the consumer economy and are carefully managing increasing costs through selective and targeted price increases on dishes.
The most common price point category is £#.#5, typically used by just under half of the 106 brands analysed. The second most popular is £#.#9, used by c.30%.
Price Point Patterns
Operators in different segments apply different price points to support their market positions,for example:
• £#.#9 price points are strongly associated with value-led brands and low ticket operators – including the likes of Crown Carveries, Hungry Horse, Burger King and McDonald’s within fast food.
• £#.#5 prices are used by mainstream brands, such as Bella Italia, Frankie & Benny’s and Strada.
• Upmarket and more confident/contemporary brands use £#.#0/rounding, with leading practitioners including Black & Blue, Polpo, Brewdog, Honest Burgers and Tortilla.
How much we spend on a menu hinges on the way it is presented and how upsells are communicated.
It is important to make your upsells relate to your original product, for example Nando’s offer avocado, halloumi, chicken thighs and grains as a potential upsell for salads. Offering upsells such as chips or sweet potato mash would not be as relevant and therefore a wasted opportunity.
Sources – MCA Menu and Trends Report 2018