From an independent restaurateur's point of view, pricing is a matter of custom, meeting customer expectations, and what the market will bear. Another way of thinking about it is that you make your money at dinnertime so that's what supports your fixed costs - rent, insurance, cleaning, prep cook, inventory, etc. Once you pass the hurdle of opening the doors for the day you have to squeeze every last dollar out of the operation, and if that means serving lunch at a lower price to increase volume, might as well.
Chain restaurants analyze this in detail, and you'll probably find that most fast
From an independent restaurateur's point of view, pricing is a matter of custom, meeting customer expectations, and what the market will bear. Another way of thinking about it is that you make your money at dinnertime so that's what supports your fixed costs - rent, insurance, cleaning, prep cook, inventory, etc. Once you pass the hurdle of opening the doors for the day you have to squeeze every last dollar out of the operation, and if that means serving lunch at a lower price to increase volume, might as well.
Chain restaurants analyze this in detail, and you'll probably find that most fast food and many casual places charge exactly the same for lunch and dinner. Where it does make a difference, it's primarily a matter of higher demand for fine dining at dinnertime. In markets where this is not the case, for example California wine country (where many tourists are having lunch, but fewer stay for dinner), lunch is every bit as expensive as dinner.
The road to hell (and restaurant ruin) is paved with simplifying microeconomics assumptions, but at the risk of damnation here's a hypothetical supply and demand curve for a modest restaurant that serves a single item, say a chicken dinner. Individual establishments don't have supply curves, they have marginal costs.
The blue line is a classic demand curve. There's a price at which the meal is so expensive that nobody will come - that's where it intersects the vertical axis, at $13.00. Nobody wants to pay that much for fried chicken. To the right, as the price goes down more and more people will come. But there's a limit. Even if you gave it away for free, there are only so many people who want your chicken.
The green line is more interesting, that's the marginal cost for the restaurant to serve one more order of chicken. The first meal of the night is very expensive, it costs the restaurant $200 to make its first dinner of the evening because it has to put a lot of things in place even to serve a single person - prep cooks, cooks, dishwashers, servers, and some managers. If it knew revenues would be less than that, it wouldn't pay to open the doors for the night. That's above and beyond the fixed and sunk costs in rent, insurance, and all that, which the restaurant cannot control. However, after the first few meals the marginal cost is flat, as the restaurant has a low, predictable cost for each additional dinner served - mostly the ingredients, and a little bit of additional labor. And then there's an inflection point on the far right where the restaurant is full and there's no more room to seat people. Things get very real very fast there, but I'll ignore that because most restaurants are not full most of the time.
Given its costs and what it knows of demand, the restaurant makes a pricing decision to maximize operating profits. In other words, it maximizes total revenues minus operating costs. With a little imagination you can see that's the green shaded area minus the red shaded area.
Now here's the lunch curve.
Two things are different at lunch. First, the demand curve is lower. People just won't pay as much for a lunch as a dinner, or looking at it another way, if you charge the same thing at lunch, fewer people will come. Here are some possible reasons:
- More competition at lunch - all those downtown sandwich shops
- Less time for lunch
- Less interested in eating lunch
- If lunch is too expensive there's an easy substitute - eating junk food on your desk in front of the computer. People don't do that for dinner
- Dinner is a larger meal, people pay more and get more at dinner. Restaurants, in turn, offer a little more quality, service, or accoutrements for the dinner item
Whatever the reason, demand is simply higher for dinner. Trust me, it is.
Between the lower demand curve, and the lower marginal costs for the first few meals, the price point that optimizes operating profits for lunch is usually a lot lower than the price point for dinner. Take out the graph and it's a simple thought. If you charged the same at lunch as at dinner nobody would come, and you wouldn't make any money.
Having cheaper lunch prices is a marketing tool to get people to come in. In a way, it is kind of like having a special running, except it is all the time. Lunch is the slower part of the day because people are at work, at school, or don't want to spend too much money to eat. However, the restaurant is still open which has costs so they need to make as large of a profit during that time as is poss
Having cheaper lunch prices is a marketing tool to get people to come in. In a way, it is kind of like having a special running, except it is all the time. Lunch is the slower part of the day because people are at work, at school, or don't want to spend too much money to eat. However, the restaurant is still open which has costs so they need to make as large of a profit during that time as is possible. Cheaper meals is one way of doing this. Most of the time though, these meals are smaller portions than the dinner ones. I kno...
Where do I start?
I’m a huge financial nerd, and have spent an embarrassing amount of time talking to people about their money habits.
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Where do I start?
I’m a huge financial nerd, and have spent an embarrassing amount of time talking to people about their money habits.
Here are the biggest mistakes people are making and how to fix them:
Not having a separate high interest savings account
Having a separate account allows you to see the results of all your hard work and keep your money separate so you're less tempted to spend it.
Plus with rates above 5.00%, the interest you can earn compared to most banks really adds up.
Here is a list of the top savings accounts available today. Deposit $5 before moving on because this is one of the biggest mistakes and easiest ones to fix.
Overpaying on car insurance
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Time. Most people who go out for lunch tend to not have a lot of time. Fewer people eat out for the pleasure of it, and many more eat out on a job lunch break. They are in a hurry and often don’t wish to spend a lot of money for their meal. Restaurants therefore usually have simplified menus for lunch, with fewer and simpler recipes and less costly ingredients. People eating lunch out often eat in a hurry and it’s easier to set up two shifts for lunch, despite the shorter time available.
People who eat out for dinner usually do so for choice. Dining out is rarely a necessity and more often a ch
Time. Most people who go out for lunch tend to not have a lot of time. Fewer people eat out for the pleasure of it, and many more eat out on a job lunch break. They are in a hurry and often don’t wish to spend a lot of money for their meal. Restaurants therefore usually have simplified menus for lunch, with fewer and simpler recipes and less costly ingredients. People eating lunch out often eat in a hurry and it’s easier to set up two shifts for lunch, despite the shorter time available.
People who eat out for dinner usually do so for choice. Dining out is rarely a necessity and more often a choice. It’s an evening with friends, and you want to eat delicious food and spend time with your friends with no hurries. You are not pressed for time, so usually dinner takes much longer. Knowing that the clients are not in a hurry gives the kitchen the ability to cook more complicate dishes with more unique ingredients. Finally, it’s not uncommon for a dinner party to arrive at 8 and remain at the dinner table until 11, making double turns impossibile.
Some restaurants have separate lunch and dinner menus. If you study them you will see that there are more differences than the prices alone.
Typically, the same appetizers, salads and desserts are available on both menus and the prices are the same. The entrees will differ though. Lunch entrees will be smaller portions and there will be more “lunch style” items, meaning sandwiches, entree salads, lighter foods that won’t put you into a coma, so you can function for the remainder of your day. No one wants a bunch of overstuffed, nonproductive people coming back to work after lunch. Lunch should
Some restaurants have separate lunch and dinner menus. If you study them you will see that there are more differences than the prices alone.
Typically, the same appetizers, salads and desserts are available on both menus and the prices are the same. The entrees will differ though. Lunch entrees will be smaller portions and there will be more “lunch style” items, meaning sandwiches, entree salads, lighter foods that won’t put you into a coma, so you can function for the remainder of your day. No one wants a bunch of overstuffed, nonproductive people coming back to work after lunch. Lunch should be enough food to provide the energy you need to make it until dinner, not to put you to sleep at 1:00.
So, lunch portions are smaller and often include combination items, like half of a sandwich and a small salad or cup of soup. The prices will also be lower for lunch items because it’s lunch. Not many people are looking to drop 50 bucks on lunch.
If you encounter a restaurant that is actually serving the same food for lunch and dinner, but charging more at dinner time, then just eat there for lunch.
Dinner items at restaurants are often more expensive than their lunch counterparts for several reasons:
- Perceived Value: Dinner is typically viewed as a more significant meal, often associated with more elaborate dining experiences. Restaurants may charge more for dinner items to reflect this perception.
- Ingredients and Preparation: Dinner items may use higher-quality or more expensive ingredients, and the preparation might be more complex or time-consuming. This can justify a higher price.
- Portion Sizes: Dinner portions are usually larger than lunch portions, which can contribute to the increase
Dinner items at restaurants are often more expensive than their lunch counterparts for several reasons:
- Perceived Value: Dinner is typically viewed as a more significant meal, often associated with more elaborate dining experiences. Restaurants may charge more for dinner items to reflect this perception.
- Ingredients and Preparation: Dinner items may use higher-quality or more expensive ingredients, and the preparation might be more complex or time-consuming. This can justify a higher price.
- Portion Sizes: Dinner portions are usually larger than lunch portions, which can contribute to the increased cost.
- Menu Design: Restaurants often have different menus for lunch and dinner, with dinner menus featuring more gourmet options or special dishes that are not available during lunch.
- Operating Costs: Restaurants may have higher operating costs during dinner hours due to increased staffing and busier service times, which can lead to higher prices for dinner items.
- Market Demand: There is often higher demand for dinner service, allowing restaurants to charge more for those meals.
Overall, these factors combine to create a pricing structure that typically sees dinner items priced higher than lunch items.
Economics is the major reason.
People eat more at dinner and they want larger portions. But they also spend more time eating, so the restaurant needs a certain level of profit “per seat per hour”. They serve bigger and more expensive dishes, but they make more money on them. If the lunch portion has, say, 2 chicken drumsticks, the dinner portion will have 3, and be more expensive, but it will be more profitable.
A lot of restaurants will have a menu of lunch specials that are very quick to prepare and have been prepared, for the most part, ahead of time. Just getting people in for lunch is hard,
Economics is the major reason.
People eat more at dinner and they want larger portions. But they also spend more time eating, so the restaurant needs a certain level of profit “per seat per hour”. They serve bigger and more expensive dishes, but they make more money on them. If the lunch portion has, say, 2 chicken drumsticks, the dinner portion will have 3, and be more expensive, but it will be more profitable.
A lot of restaurants will have a menu of lunch specials that are very quick to prepare and have been prepared, for the most part, ahead of time. Just getting people in for lunch is hard, because of the time involved, so it’s not just price but speed that attracts them.
Due to several reasons, restaurants charge more in a dinner time usually as compared to lunch.
High traffic of customers arrives in the evening time.
More expert staff like waiters, chefs are engaged in the evening shifts, because they work late at night, so it’s quite difficult for them to work in the afternoon as well.
Normally in process of training staff hotels engage in the afternoon shift.
The most important opinion by my side is that pleasure of eating out becomes double in the night time, I feel very light and natural to enjoy at that span, so restaurants can analyze customers mindset as w
Due to several reasons, restaurants charge more in a dinner time usually as compared to lunch.
High traffic of customers arrives in the evening time.
More expert staff like waiters, chefs are engaged in the evening shifts, because they work late at night, so it’s quite difficult for them to work in the afternoon as well.
Normally in process of training staff hotels engage in the afternoon shift.
The most important opinion by my side is that pleasure of eating out becomes double in the night time, I feel very light and natural to enjoy at that span, so restaurants can analyze customers mindset as well.
So charging more at that time is really justified.
I once met a man who drove a modest Toyota Corolla, wore beat-up sneakers, and looked like he’d lived the same way for decades. But what really caught my attention was when he casually mentioned he was retired at 45 with more money than he could ever spend. I couldn’t help but ask, “How did you do it?”
He smiled and said, “The secret to saving money is knowing where to look for the waste—and car insurance is one of the easiest places to start.”
He then walked me through a few strategies that I’d never thought of before. Here’s what I learned:
1. Make insurance companies fight for your business
Mos
I once met a man who drove a modest Toyota Corolla, wore beat-up sneakers, and looked like he’d lived the same way for decades. But what really caught my attention was when he casually mentioned he was retired at 45 with more money than he could ever spend. I couldn’t help but ask, “How did you do it?”
He smiled and said, “The secret to saving money is knowing where to look for the waste—and car insurance is one of the easiest places to start.”
He then walked me through a few strategies that I’d never thought of before. Here’s what I learned:
1. Make insurance companies fight for your business
Most people just stick with the same insurer year after year, but that’s what the companies are counting on. This guy used tools like Coverage.com to compare rates every time his policy came up for renewal. It only took him a few minutes, and he said he’d saved hundreds each year by letting insurers compete for his business.
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2. Take advantage of safe driver programs
He mentioned that some companies reward good drivers with significant discounts. By signing up for a program that tracked his driving habits for just a month, he qualified for a lower rate. “It’s like a test where you already know the answers,” he joked.
You can find a list of insurance companies offering safe driver discounts here and start saving on your next policy.
3. Bundle your policies
He bundled his auto insurance with his home insurance and saved big. “Most companies will give you a discount if you combine your policies with them. It’s easy money,” he explained. If you haven’t bundled yet, ask your insurer what discounts they offer—or look for new ones that do.
4. Drop coverage you don’t need
He also emphasized reassessing coverage every year. If your car isn’t worth much anymore, it might be time to drop collision or comprehensive coverage. “You shouldn’t be paying more to insure the car than it’s worth,” he said.
5. Look for hidden fees or overpriced add-ons
One of his final tips was to avoid extras like roadside assistance, which can often be purchased elsewhere for less. “It’s those little fees you don’t think about that add up,” he warned.
The Secret? Stop Overpaying
The real “secret” isn’t about cutting corners—it’s about being proactive. Car insurance companies are counting on you to stay complacent, but with tools like Coverage.com and a little effort, you can make sure you’re only paying for what you need—and saving hundreds in the process.
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Saving money on auto insurance doesn’t have to be complicated—you just have to know where to look. If you'd like to support my work, feel free to use the links in this post—they help me continue creating valuable content.
***Note: This is my attempt at making a much shorter post than most...
Lunch:
- Smaller portions
- Simpler fare (Burgers or sandwiches)
Dinner:
- Larger portions
- Steaks, seafood, pasta dishes, etc.
- Extras (At Chinese places, they will offer a soup and egg roll with dinner but not at lunch. At steakhouses, you will probably get a salad with dinner but not lunch.)
I've never seen the exact same food served for lunch and dinner, yet priced higher for dinner on the regular menu. There will often be lunch specials, especially at pricier sushi joints or steakhouses. I chalk this up to marketing rather than
***Note: This is my attempt at making a much shorter post than most...
Lunch:
- Smaller portions
- Simpler fare (Burgers or sandwiches)
Dinner:
- Larger portions
- Steaks, seafood, pasta dishes, etc.
- Extras (At Chinese places, they will offer a soup and egg roll with dinner but not at lunch. At steakhouses, you will probably get a salad with dinner but not lunch.)
I've never seen the exact same food served for lunch and dinner, yet priced higher for dinner on the regular menu. There will often be lunch specials, especially at pricier sushi joints or steakhouses. I chalk this up to marketing rather than economics.
This question betrays an all too common failure to understand how pricing is done in the real world.
No business sets prices according to exactly how much things cost to produce, and wouldn’t even if it were possible to accurately determine what those costs are, which it isn’t since most costs can’t be traced to any particular item. Consequently, most pricing is done on the basis of what the market will bear, meaning they price specific items at the level that people are willing to pay for that item. The goal is to produce as much net revenue as possible, on each item but more importantly for t
This question betrays an all too common failure to understand how pricing is done in the real world.
No business sets prices according to exactly how much things cost to produce, and wouldn’t even if it were possible to accurately determine what those costs are, which it isn’t since most costs can’t be traced to any particular item. Consequently, most pricing is done on the basis of what the market will bear, meaning they price specific items at the level that people are willing to pay for that item. The goal is to produce as much net revenue as possible, on each item but more importantly for the business as a whole, and hope that the total revenue will cover total costs and then some, which is what actually matters.
People are willing to pay more to have dinner than to have lunch. But the restaurant is there at both lunchtime and dinnertime. So they charge what they can during both periods, which means that dinner prices will be higher.
Why is a dinner item at a restaurant often more expensive than the equivalent lunch item?
For most sit down restaurants there are a few reasons for this, including, but not limited to, the following:
- People do not have as much time at lunch - an hour at most, and usually less (they have to get to and from the restaurant). That means the expectations will be lower. A quick soup or salad which can be served within minutes of ordering the food, instead of a fancy appetizer. A lighter main course which again is easy to prepare.
- For dinner, people are more likely to want a cocktail or bottle of wine.
Why is a dinner item at a restaurant often more expensive than the equivalent lunch item?
For most sit down restaurants there are a few reasons for this, including, but not limited to, the following:
- People do not have as much time at lunch - an hour at most, and usually less (they have to get to and from the restaurant). That means the expectations will be lower. A quick soup or salad which can be served within minutes of ordering the food, instead of a fancy appetizer. A lighter main course which again is easy to prepare.
- For dinner, people are more likely to want a cocktail or bottle of wine. When you have to go back to work after lunch you may not want this, and some employers may frown upon you drinking at work to begin with. And do you really want to return to work with alcohol on your breath? You are not going to gulp down your drink, so you don’t mind waiting longer to be served your food.
- Because of the two issues above it means that turnover at lunch will likely be higher than at dinner. The means that the restaurant may serve more meals at lunch then at dinner. More plates of food means that the restaurant does not need to mark up the food as much in order to make money.
Dinner entrees are usually more expensive than lunch entrees for two reasons: Dinner entree portions are larger and they use more exclusive ingredients.
Most people don’t want to fill up on a big meal at lunch time, nor do they want to drop a lot of cash on a small portion of something fancy like butter poached lobster with white truffles. The butter poached lobster is dinner time fare.
Sandwiches and salads are good lunch items and they don’t command a high price.
Is the lunch item really equivalent? Often lunch options are smaller portions, or come with less expensive sides or fewer options (i.e. the steak is 6 oz instead of 8 oz, and comes with fries or a house salad instead of your choice of two out of mashed potatoes, a Caesar-bacon wedge, a cup of soup, or steamed vegetables). That is one reason.
Another is that lunch demand tends to be less for most restaurants in most locations, and people emphasize price more at lunch than dinner. Hence, to fill your restaurant for the lunch hour, you need to charge less than your competitors whereas at dinner th
Is the lunch item really equivalent? Often lunch options are smaller portions, or come with less expensive sides or fewer options (i.e. the steak is 6 oz instead of 8 oz, and comes with fries or a house salad instead of your choice of two out of mashed potatoes, a Caesar-bacon wedge, a cup of soup, or steamed vegetables). That is one reason.
Another is that lunch demand tends to be less for most restaurants in most locations, and people emphasize price more at lunch than dinner. Hence, to fill your restaurant for the lunch hour, you need to charge less than your competitors whereas at dinner the diner wants your specific restaurant’s offerings.
Finally, the lunch crowd tends to have higher turn-over. Hence, you don’t need as much profit per entree since you will be able to fit in twice as many customers over the couple of hours. You might make half as much profit per sale, but that doesn’t matter if you make twice as many sales by keeping the prices lower.
Because you are not prepared to spend as much money on your lunch as on your dinner.
That is the same story with any other product with high share of fixed cost - say the rent and maintenance of the place, licensing etc in case of a restaurant. Do you really think that low-end Intel i7 CPU costs 10x less to produce than high-end i7? I am not even sure they are not identical, artificially made to perform differently.
In situations like that, vendors go for "not leaving money on the table". In the case in question, to get $50 from whoever is prepared to pay $50 for a dinner, and accept money fro
Because you are not prepared to spend as much money on your lunch as on your dinner.
That is the same story with any other product with high share of fixed cost - say the rent and maintenance of the place, licensing etc in case of a restaurant. Do you really think that low-end Intel i7 CPU costs 10x less to produce than high-end i7? I am not even sure they are not identical, artificially made to perform differently.
In situations like that, vendors go for "not leaving money on the table". In the case in question, to get $50 from whoever is prepared to pay $50 for a dinner, and accept money from whoever is prepared to pay $15 for a lunch, operating the limited bandwidth (number of seats) at full capacity and at maximum margin.
Another factor is people generally eat lunch faster than dinner.
Although restaurants charge by the dish, most of their costs accumulate by the hour. When you occupy a table for a longer period of time the restaurant has to find a way to charge for that time.
I have been told that this is why restaurants charge so much for wine. Patrons who order a fine bottle of wine want to slow down and savor the dining experience. This reduces the restaurants table turniver and so they add this cost to the price of the wine.
A new restaurant opened near me that offered seating that you paid for by time. They
Another factor is people generally eat lunch faster than dinner.
Although restaurants charge by the dish, most of their costs accumulate by the hour. When you occupy a table for a longer period of time the restaurant has to find a way to charge for that time.
I have been told that this is why restaurants charge so much for wine. Patrons who order a fine bottle of wine want to slow down and savor the dining experience. This reduces the restaurants table turniver and so they add this cost to the price of the wine.
A new restaurant opened near me that offered seating that you paid for by time. They had a base price that you had to pay but after that it was based on how long you stayed at the restaurant.
They were a small plates tasting establishment and if you stayed about two hours you would taste every item on the menu that night.
I was impressed with the quality of the food for the price. They only lasted a few months though. I guess most folks aren't ready for such an arrangement.
I know some restaurants serve smaller portions at lunch than at dinner here in the Midwest. I prefer this as I want a smaller meal at lunch.
I have noticed that prices have risen across the board but quality has gone down in some businesses. We prefer to pay more to get the quality we desire.
When a restaurant offers a low price for something that should be more it makes us suspicious about the quality.
We believe that most prices in this part of the country are about attracting more customers to your business by offering low prices. This formula changes a bit as you go toward higher e
I know some restaurants serve smaller portions at lunch than at dinner here in the Midwest. I prefer this as I want a smaller meal at lunch.
I have noticed that prices have risen across the board but quality has gone down in some businesses. We prefer to pay more to get the quality we desire.
When a restaurant offers a low price for something that should be more it makes us suspicious about the quality.
We believe that most prices in this part of the country are about attracting more customers to your business by offering low prices. This formula changes a bit as you go toward higher end dinning. Then we find that there are fair prices for excellent dishes and inflated prices for lousy dishes.
Remember, your restaurant bill has built in to it the "rent" for the table. While you are at the table no one else can use it. Since dinners tend to be longer, more leisurely affairs, compared to a quick working-day lunch, the "rent" is higher for a dinner. The restaurateur might not think about this explicitly, but with a...
Some answers are much more complex ..however I just think that for most restaurants it is the principle of demand and supply. Since the total supply (the no. of people it can cater) remains the same so for increasing demand the restaurant will have incentive to increase prices.
No since people are at work during the lunch hours (business lunches are much lesser in comparisons to evening outings) hence the demand is much more during evenings. Hence for most restaurants it is better that they increase prices during evening .. or decrease prices during lunch hours to attract customers and operate
Some answers are much more complex ..however I just think that for most restaurants it is the principle of demand and supply. Since the total supply (the no. of people it can cater) remains the same so for increasing demand the restaurant will have incentive to increase prices.
No since people are at work during the lunch hours (business lunches are much lesser in comparisons to evening outings) hence the demand is much more during evenings. Hence for most restaurants it is better that they increase prices during evening .. or decrease prices during lunch hours to attract customers and operate at enhanced capacity (Reduce fixed cost per unit).
This is the same reason why movie tickets are cheaper on weekdays and in mornings ... why flights become costlier during festivals ... I can just go on but I guess I have made my point...
I asked a restaurant client about this recently (we're building their website) and noticed that almost all their courses were the same price between their lunch and dinner menus and was a bit puzzled.
Their response was that they used the same ingredients, the same quality of staff and served the same size of portions for both. So they have expensive but very well fed lunch customers and reasonable priced dinner servings.
The one area that differed was that some servings were larger in the evening (5 out of 50 on the menu) and so that's why they were more expensive. What kind of restaurant? Hi
I asked a restaurant client about this recently (we're building their website) and noticed that almost all their courses were the same price between their lunch and dinner menus and was a bit puzzled.
Their response was that they used the same ingredients, the same quality of staff and served the same size of portions for both. So they have expensive but very well fed lunch customers and reasonable priced dinner servings.
The one area that differed was that some servings were larger in the evening (5 out of 50 on the menu) and so that's why they were more expensive. What kind of restaurant? High end Italian. In the very centre of Edinburgh on its most expensive street.
When I was younger and dating, I was told by an older friend that when a man takes you out to dinner see what he orders first. You can ask, “What looks good? What are you having?” If my date said, “They have the best lobster here. You may want to order it. I am.” I would order it as I love lobster. If he orders a steak you have an idea what he’s willing to pay. So, if he ordered a pricy steak, I w
When I was younger and dating, I was told by an older friend that when a man takes you out to dinner see what he orders first. You can ask, “What looks good? What are you having?” If my date said, “They have the best lobster here. You may want to order it. I am.” I would order it as I love lobster. If he orders a steak you have an idea what he’s willing to pay. So, if he ordered a pricy steak, I wouldn’t order a hamburger, I would get a fish or steak meal. If he ordered a hamburger, I would order a basic hamburger or a salad.
Also, what do you normally order? If you like the ribs, order the ribs. Just don’t be greedy.
I have actually been in situations where I’m with people who know I will pay, and have had them order a meal with a ...
It's all about quantity of food and quality of the experience.
A major pay-point of a meal is renting the experience. Lunch isn't customarily that much of an experience, it's just something we're doing to make it through the day (and to make it to dinner). Yes, the portions may be smaller, but all in all, I'm getting a waiter and a couple of water refills with my lunch, as opposed to a nice dinner out with a cocktail or bottle of wine and impeccable service.
A restaurant local to me has a buffet-style Asian bar, including sushi (even made-to-order, including lobster), and it's actually pretty
It's all about quantity of food and quality of the experience.
A major pay-point of a meal is renting the experience. Lunch isn't customarily that much of an experience, it's just something we're doing to make it through the day (and to make it to dinner). Yes, the portions may be smaller, but all in all, I'm getting a waiter and a couple of water refills with my lunch, as opposed to a nice dinner out with a cocktail or bottle of wine and impeccable service.
A restaurant local to me has a buffet-style Asian bar, including sushi (even made-to-order, including lobster), and it's actually pretty good. The dinner price is more than the lunch price - not because it takes more to fill you up at dinner than lunch. Also, they don't charge a lot less for kids than they do adults (they actually charge by height). And they don't differentiate in price based on lap-band or other surgeries or your claim that you won't eat a lot. They openly claim that their pricing is based on their customers paying for a dining experience, no matter how much they eat. They claim they are not a "buffet", rather an "all you care to eat to remain satisfied" restaurant. I LOVE that. You're not paying by the pound, you're paying by the amount of pleasure, by the minute of joy.
It's all about the experience, and somewhat about the quantity and quality.
I'll happily drop $100 or much more on a great dinner experience any night of the week, but if you're going to charge me $25 for a Tuesday lunch, I'm probably going to keep walking. I've had some great $50 lunches, but they are few and far between, and I have never walked into a lunch joint thinking "this better be worth $50 to me!"
Depending on the kind of place and on the location, but if you own a restaurant, you need to understand that during the week, there's a working crowd of customers to be captured on their lunch break. Their expectations are radically different from the ones of the people who come at night, purely because they want to enjoy a good meal and a good time out. For lunch, most people will have an hour (actually, less than this, most of the time) and they don't want to spend a fortune. They'd demand that their plate comes promptly to the table at a reasonable price. Fair enough. You do adapt, and if y
Depending on the kind of place and on the location, but if you own a restaurant, you need to understand that during the week, there's a working crowd of customers to be captured on their lunch break. Their expectations are radically different from the ones of the people who come at night, purely because they want to enjoy a good meal and a good time out. For lunch, most people will have an hour (actually, less than this, most of the time) and they don't want to spend a fortune. They'd demand that their plate comes promptly to the table at a reasonable price. Fair enough. You do adapt, and if you succeed, you might sell cheaper but in bigger volumes. At night, people will have more time and will be more likely to spend more, provided that they have a good time of course. You will adapt again and focus on the quality of service, atmosphere, etc. - which allows you to charge a little more.
Generally because they include more items, the portions are larger or both. Of course, bigger/more enough to justify the cost difference is something that you can only determine dish by dish, restaurant by restaurant.
I can’t see too many places charging more for a plate that’s virtually identical. That’s something that would be discovered before long. To answer the inevitable question: yes, that would be legal, just not very smart.
The portions are often smaller and the fare is simpler - the lunch menu will often consist primarily of sandwich options, whereas the dinner is more, well, a dinner - an entree, sides, more of a multi-course meal.
Generally, at least in the US, dinner is the main meal of the day. People want more food for dinner and are willing to pay more for it.. Lunch entrees are typically smaller.
Portion size aside, people are generally willing to pay more for dinner because dining out for dinner is more of a social experience, whereas dining out for lunch is more often a convienience.
These answers are overly complex and miss the basic economics behind the question.
Yes, there may be marginal cost differences among the food, waitstaff, etc., but the price difference exists because people are willing to spend more when they go out to dinner, so restaurants can charge more for it.
For more thorough reasoning, see: Why is iced coffee more expensive than hot coffee?
Dinner portions tend to be larger and people eat slower. Restaurants make money based on table turnover. People eat lunch quickly so they could get back to work. At dinner they tend to linger so tables might only turn over twice instead of 3 times for example).
In most places where I worked (fast food excluded), lunch items were exactly the same as dinner items. They were just portioned smaller. Most of those restaurants established their local reputation before they began serving lunch. By doing that, and then offering lunch, you increase your restaurant’s value offered without affecting your business negatively.
years ago, a very successful restauranteur told me his two KSFs were:
- food wastage (he served everything fresh, nothing frozen, so unused food was tossed) and
- staffing - on a slow night he could not just send staff home, there was a minimum period he had to pay them, even if they only served a few tables
For his restaurant, the lunch crowd was more predictable, hence easier to staff correctly, so he priced appropriately
(of course, he did acknowledge the competitive pressures of neighboring restaurants, but from his perspective he could compete because of cost management)
When I worked in restaurants my theory is that lunch meals are made in smaller portions because people usually only have 30 minutes to an hour (tops) to eat. They're smaller portions because they can be both made quickly and eaten quickly then they go back to work. Smaller portions equals cheaper meal.
Dinner hour however, people aren't normally "on the clock" so they can take all the time they need. The portions are bigger, takes longer to make but no one is in the same rush as they could be during lunch hour.
Here’s my two cents. I used to work for a medical resale company. At trade shows, it was common for our vendors to take us out for a meal. They were trying to gain favor to increase our sales of their product. One such dinner was the most expensive meal I’ve ever had. We were at a very good steak house. This was the kind of place that a steak expert would come to the table to describe each cut and cook available. They also talked about the right drink to pair with the steak. The vendor ordered a seafood tower for an appetizer. It was huge and very expensive. I ordered a Wagyu Porterhouse, rare
Here’s my two cents. I used to work for a medical resale company. At trade shows, it was common for our vendors to take us out for a meal. They were trying to gain favor to increase our sales of their product. One such dinner was the most expensive meal I’ve ever had. We were at a very good steak house. This was the kind of place that a steak expert would come to the table to describe each cut and cook available. They also talked about the right drink to pair with the steak. The vendor ordered a seafood tower for an appetizer. It was huge and very expensive. I ordered a Wagyu Porterhouse, rare. Most expensive steak I’ve ever had. It was great.
Now, if I’m going out with friends or family, things are different. I don’t assume an appetizer is included unless the host asks if one is wanted. Same thing with alcohol. If the host orders a drink, I’ll follow suit with a drink and a glass of water. As for the menu, I order as if I’m paying. Usually something mid-range unless the host says we should go for it, but that is rare.
Just be considerate. If in doubt, ask your host.
At my law firm, we wine and dine a lot of candidates for jobs. It’s a test in a lot of ways. A part of that test is that we take note of how the candidate treats the waitstaff and what they order. Most people don’t raise any eyebrows. But we have had some candidates order the most expensive thing on the menu and an expensive bottle of wine. I just find that be a bit tacky and thoughtless to be honest. It reflects poorly on their manners because they know we are going to pay for the bill. Generally, I think you should order something in a similar price range to the other person. For example, wh
At my law firm, we wine and dine a lot of candidates for jobs. It’s a test in a lot of ways. A part of that test is that we take note of how the candidate treats the waitstaff and what they order. Most people don’t raise any eyebrows. But we have had some candidates order the most expensive thing on the menu and an expensive bottle of wine. I just find that be a bit tacky and thoughtless to be honest. It reflects poorly on their manners because they know we are going to pay for the bill. Generally, I think you should order something in a similar price range to the other person. For example, when our attorneys take someone out to lunch and order a casual salad or pasta, the candidate they are interviewing should probably order something equally casual like pastas or sandwiches. If they are all going to a steakhouse and ordering steaks, then that’s fine too. But don’t be the one odd person out who orders something 5x as pricey as the other people dining with you.
I am like many others here who said that anytime they are invited out for a meal and they know the other person is paying, they always get something in the mid-price range.
This is a courteous and considerate approach which shows gratitude without taking advantage of the other person's generosity.
However, there are exceptions to this rule. For example, anytime my friend, Ron, invites me out for lunch, I know going in that I am going to get one of the more expensive menu items. Ron will not have it any other way and will be quite disappointed if I do otherwise. In fact, he makes it clear that he
I am like many others here who said that anytime they are invited out for a meal and they know the other person is paying, they always get something in the mid-price range.
This is a courteous and considerate approach which shows gratitude without taking advantage of the other person's generosity.
However, there are exceptions to this rule. For example, anytime my friend, Ron, invites me out for lunch, I know going in that I am going to get one of the more expensive menu items. Ron will not have it any other way and will be quite disappointed if I do otherwise. In fact, he makes it clear that he wants me to splurge and eat like a much larger and wealthier man.
As soon as the waitress appears, Ron says something like, "You want an appetizer, Dan? The buffalo wings are awesome, so are the chili nachos."
“Sounds great."
“We'll have both," Ron tells the waitress.
I am not a big guy and I'm always conscious of my weight and the need for healthy eating, but all that falls by the wayside when I have lunch with Ron.
“Feel free to get that Ribeye steak if you want, Dan, you won't regret it."
Ron always insists that I order dessert and if I say I am too full he says that's not a problem; I can get it to go, and be sure to order double so there's plenty for Miss Andrea. I believe I would hurt his feelings if I refused.
By the time lunch with Ron is over, I always feel like I should call an Uber, not because I drank alcohol but because I am a bit woozy from all that amazing food.
And Ron, who ate as much or more than me, bops to his car the happiest guy ever.
Generous and genuine friends are a blessing.
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People have more time at the end of a day for a leisurely meal and have more opportunities to get together with friends, family, or business acquaintances than at lunchtime.
Thus, if they want to make a big occasion of a meal, and get a lot done in terms of enjoyment/get business done, people will do it over dinner, not lunch Restaurants know this, and so have their fancy meals, entertainment, etc. in the evening.
For the very same reason companies provide discounts on their soft days. The products don't cost any less those days. They pay rent 24 hours a day so this is a way of ensuring they are not losing money during their off-peak hours... plus, every time a customer comes in at a lower cost lunch, the restaurant has an opportunity to sell them on dinner.
- Compared to dinner time the turnovers at lunch time are high because many of the guests eat quickly to get back to their work. A table turns over atleast thrice. The dinner time is where people eat at leisurely pace and may keep the table occupied for an unusually long time.
- The dishes on the food table at the dinner time are generally larger in number. In the laid back ambience of the dinner time the intake is also higher.
- The demand for reservation for dinner is higher than that for lunch. The principle of demand and supply influencing the price operates.
Several friends and I went to a nice Italian and steak place. One of the people with us had for several years put in $20 when his share was as high as $60 to $80.
In this case he also ordered expensive wine. He shared this wine only with his girlfriend. By itself this single bottle of wine cost $100 or more.
I was a university student at the time. So I ordered a big salad and a glass of water and left it at that.
Toward the end of the meal, he ordered a second bottle of wine. Again he allowed nobody but his girlfriend to drink any of it.
When the bill came, he dropped a twenty dollar bill in the p
Several friends and I went to a nice Italian and steak place. One of the people with us had for several years put in $20 when his share was as high as $60 to $80.
In this case he also ordered expensive wine. He shared this wine only with his girlfriend. By itself this single bottle of wine cost $100 or more.
I was a university student at the time. So I ordered a big salad and a glass of water and left it at that.
Toward the end of the meal, he ordered a second bottle of wine. Again he allowed nobody but his girlfriend to drink any of it.
When the bill came, he dropped a twenty dollar bill in the pile and went back to his loud talking.
The group of us told him to put in more money. He ignored our requests three times. So we told him we’d all put in our share, and we got up and left.
As we left, we saw his now very angry girlfriend digging in her purse. I realized that he’d been freeloading off her too.
We never asked them to dinner again as a couple. But we did include her after they broke up.
EDIT: Thank you everybody for all the views and upvotes.
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Usually it's a portion difference. Lunch might be a 5oz portion of pasta and dinner might be 8oz. Or lunch might be half rack of ribs whereas dinner might be a a whole rack.
Typically Lunch Service is a lighter service. I guess that could depend on the Restaurant. A place I worked at in NY had a Lunch Menu, and the meal included Meat, Veggie, and Starch. The dinner was multi course and had a first serving of Salad, a Pasta course, then the meal, same as was served for Lunch.
Another place I worked had no disparity between Lunch and Diner, but also charged the same price.
Otherwise I agree with you, no reason to charge more for the same meal. There is probably a difference in the meals you receive for different prices.
A friend whose expertise in this I respect, also
Typically Lunch Service is a lighter service. I guess that could depend on the Restaurant. A place I worked at in NY had a Lunch Menu, and the meal included Meat, Veggie, and Starch. The dinner was multi course and had a first serving of Salad, a Pasta course, then the meal, same as was served for Lunch.
Another place I worked had no disparity between Lunch and Diner, but also charged the same price.
Otherwise I agree with you, no reason to charge more for the same meal. There is probably a difference in the meals you receive for different prices.
A friend whose expertise in this I respect, also suggests that there is a difference in Lunch and dinner beyond the food. Demand, and space. At lunch, the turn over of tables in the house is faster, and many more meals are prepared in the short “Rush” of Lunch. Dinner seatings are scheduled for Two Hours, and tables are in higher demand. The total Lunch Service is done in Two hours. The dinner Services go on for Six Hours, are more labor intensive, and require basically turning over the restaurant three times. The costs go up when you have more demand this way.
Lunch offerings generally consist of smaller portions & usually aren’t as elaborate as dinner meals.
I’ve wondered at the answer to that myself.
I have a favorite little Chinese restaurant I like to visit. It has tables with table cloths, great service and reasonable prices.
Right across the parking lot is a Jack In The Box.
I’ve eaten at both and JIB is more expensive.
It’s when I am sitting at a table in the restaurant, eating with clean flatware and having my tea cup refilled that I look out the bay window, through the rain at all the cars in the drive-through chugging steam and smoke out their tail pipes waiting for flimsy bags of greasy food that will soon be cold.
I know I am going to pay le
I’ve wondered at the answer to that myself.
I have a favorite little Chinese restaurant I like to visit. It has tables with table cloths, great service and reasonable prices.
Right across the parking lot is a Jack In The Box.
I’ve eaten at both and JIB is more expensive.
It’s when I am sitting at a table in the restaurant, eating with clean flatware and having my tea cup refilled that I look out the bay window, through the rain at all the cars in the drive-through chugging steam and smoke out their tail pipes waiting for flimsy bags of greasy food that will soon be cold.
I know I am going to pay less for my bill here than those trapped individuals waiting in their cars for a bag or two of grease.
I finish my meal, wipe my mouth, toss off the last drops of (really excellent) tea, and add 20% - or even 25–30% Tip just for having been privileged to sit in this fine, clean, tasty restaurant and watch those miserable bastards waiting in misery to pay more for less.
I love eating there! I hope that it will always be there and not disappear under the steam-rolling advance of more and more no-Service fast-food joints.
In my experience restaurants that have the same items on both the lunch and dinner menus serve smaller portions at lunchtime. Hence, the lower prices.