Money on the table: Increasing revenue through menu order

Steven C. Huff
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Steven C. Huff: Utah Valley University, USA

Journal of Digital & Social Media Marketing, 2021, vol. 9, issue 3, 275-283

Abstract: This research investigates the relationship between menu order and restaurant revenue. It finds that while uncommon, menus listing items in descending price order may provide more revenue to online retailers than other, more common, menu orderings. These findings are drawn from a field experiment conducted in a single restaurant with upscale clientele. In the experiment, menu order was manipulated (eg ascending or descending by price) across conditions. Analysis of daily subtotals revealed that diners’ choices were influenced by menu order, with diners spending over 10 per cent more on purchases from descending menus than ascending menus. This result suggests that restaurateurs may be experiencing suboptimal revenues when they post menus in ascending or random/ aesthetic order (which is standard practice), and that by posting menus listing items in descending price order, or posting a high-priced item at the top of their menus, they might be able improve their profits.

Keywords: e-commerce; menu design; menu order; willingness to pay; anchoring and adjustment; references prices (search for similar items in EconPapers)
JEL-codes: M3 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:aza:jdsmm0:y:2021:v:9:i:3:p:275-283

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