Exploring the Pricing Tactics of Restaurants

In today’s competitive marketplace price is one of the major driving force to make or break a business (McCall and Lynn, 2008). Among the popular marketing P’s (i.e. Product, Price, Place, promotion, People, Processes and Physical Evidence especially for the service industries), Price is the prominent feature where a wide range of clients would bring comparison which would ultimately lead purchasing-decision (Mullins, 2010). Especially, a small business like restaurants where meals are prepared and served to customers, need to consider ‘price’ seriously to make a stand in the market (Kotler et al., 2010; Lancaster et al., 2002). Being ‘usually’ small, restaurants would have advantages and disadvantages over pricing of their goods and services. This particular piece explores some of the techniques restaurants would follow to determine price. The work is mainly based on popular theories and researches across the globe.