I just read an article in the New York Times about a $40 half rotisserie chicken in a NYC area restaurant. (https://www.nytimes.com/2026/04/13/dining/rotisserie-chicken-prices.html)

It turned into a political talking point claiming price gouging by a restaurateur. Digging deeper it became apparent that there was a legitimate reason(s) why this price point was necessary even though it seemed absurd to the average consumer. Why is it that a $4.50 whole rotisserie chicken at COSTCO is $40 in a sit-down operation? For some reason, even the most astute consumer fails to consider the high cost of rent, the hundreds of thousands of dollars invested in building a professional kitchen, license fees, rapidly increasing labor costs, utilities, ingredient cost going nowhere but up and the fact that COSTCO is using their rotisserie chicken as a loss leader, selling the item below their raw costs as a way to pull customers in.

         Now, here’s the great equalizer – your customers don’t care about your challenges, nor should they. What they care about is VALUE. Is that half rotisserie chicken with all your delicious sides, served tableside by a friendly employee, in an atmosphere designed to make you comfortable, with an extensive wine and distilled beverage list – worth $40? If not, then how can the restaurateur make it so? I think it’s time for restaurant operators and chefs to think differently about what they sell, how they sell it, why they sell it, when they sell it, and how they price it. We can’t simply moan about how difficult it is to operate a restaurant. Remember, even our most sympathetic customers don’t really care about your challenges, they care about the VALUE of the experience when that check is presented. So, let’s put the arguments about pricing aside for a moment and start to think about value statements. Some food for thought…

[]       YOUR PRIMARY JOB IS TO CREATE RAVING FANS

If a restaurateur needs to focus on one aspect of running their business it should be to create fans, honored guests, clients and not customers, people who willingly stand on a soap box and sing your praises. This is the greatest measurement tool that you can implement – “are we creating raving fans?”

[]       ALL CUSTOMERS ARE EQUAL – RETURN CUSTOMERS ARE A BIT MORE EQUAL

Part of your raving fan measurement is tracking how many guests are frequent flyers. Know who these people are and pay attention to them – flood them with gratitude and focus on saying YES when they make a request. These are your friends and should be treated as such.

[]       THE BEST CUSTOMERS ARE PARTNERS AND AMBASSADORS

Sure, sometimes they can be annoying with offered suggestions and observations, but the return customer who gives input are the same clients who will speak your praises in public, who will convince others to become fans, and who will trust you to deliver. Welcome them – they will measure your value for you.

[]       WHY NOT CONSIDER MEMBERSHIP

Ah…here is a radical idea. Have you considered some type of member program? Members have less reason to drift to your competition. Members feel a stronger connection to your operation and its success. Membership need not include pricing discounts (although some might be offered throughout the member year) but might include “value-added” incentives like wine classes, pre-release tastings for your new menu, first refusal invitations to private chef dinners, behind the scenes tours, shared recipes, or an occasional free appetizer or dessert. Bring them into the fold, make them part of who you are. Why would they want to dine elsewhere when this is THEIR RESTAURANT?

[]       REMEMBER THE “PAY IT FORWARD” INITIATIVE DURING THE PANDEMIC

One of the challenges for restaurants is the ebb and flow of seasonal business volume changes. This can include shoulder seasons in resort areas or “off nights” of the week. Why not consider PAY IT FORWARD cards that provide discounts to those who pre-purchase a package of meals at the beginning of a shoulder season. Make the cards valid for that period and design them to create positive cash flow when sales are historically soft. Let the guest know that they are helping you survive when survival is the objective.

[]       TRY PLANNING MENUS THAT REFLECT THE MARKETPLACE

Instead of offering what you would like to prepare, stay close to marketplace fluctuations and plan menus accordingly. Right now, the beef market is insane, so maintaining a menu that is beef centric makes VALUE for the guest a real challenge. Seasonality differences in ingredient quality, should be another consideration.

[]       SMALL IS BETTER AND INVENTORY IS NOT YOUR FRIEND

The days of the four-page menu may be done. Keep it small, execute each item exceptionally well, keep your inventory low, minimize waste, and change items as the marketplace requires. Be excellent at less but eliminate any sign of mediocrity.

[]       WHY NOT PRICE WINES TO SELL RATHER THAN FRIGHTEN

This is another light bulb moment. A good friend suggested this years ago and it made perfect sense. To create the best dining experience, wine or alcohol should play a part. A great meal with a great glass of wine is exponentially more memorable. Bring the wine experience to every diner by pushing aside the old model of doubling or tripling the cost of the wine to make up for lower profit margins on food. As a result, fewer guests order wine or if they do, their decision is price focused or relegated to wine by the glass instead of a bottle. A $20 glass of wine rarely results in a second. A $75 bottle of wine that cost you $20 is oftentimes overlooked. If you want to improve the guest experience, give them an opportunity to order a better wine because it is affordable. Your goal should be a bottle on every table.

[]       BRING BACK TABLE D’HOTE MENUS

The old blue-plate option that includes a salad or soup, entrée, vegetable, starch, bread and butter, and a cup of coffee would find a welcome reception in today’s market. The all-inclusive, no surprises pricing associated with Table d’ Hote may just be the ticket today.

[]       MAXIMIZE SALES – REMEMBER THE TOP LINE – REMEMBER CASH FLOW

The top line drives the bottom line and the most effective way to accomplish this is through volume and a steady flow of return, excited, dedicated guests. If you must charge $40 for that half rotisserie chicken, then do so but make sure the guest sees its value.

PLAN BETTER – TRAIN HARDER – FOCUS ON VALUE

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