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Restaurant pricing - death spiral

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Restaurant pricing - death spiral

duck833 | Nov 9, 2008 12:57 PM

Does anyone know of information available that shows what the correlation of raising menu prices vs lost sales is? What I mean is lets say your business drops off 10% and you need to raise prices to cover your fixed overhead. If you raise prices 10% to makeup for the lost business how many fewer customers will come in because of the increased prices. At some point you have to raise prices to the level where you have priced yourself out of business.

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