How important is pricing to attract right customer
How important is pricing to attract right customer

Ever fantasized about your favourite food, but stopped short of ordering due to the price? Mouthwatering food doesn’t seem enticing enough if it is priced too high. For a restaurateur, getting the pricing right is as crucial as getting the taste right. The expenditure of Indian households on eating out is rising rapidly and it has become imperative for established as well as new restaurants to formulate a dynamic pricing strategy. As per reports, an average Indian household spent over INR 2500 per month on eating out in 2019.

Also Read: Why customer experience will be the new marketing tool for delivery brands

If one goes by the common wisdom, a restaurant owner is supposed to maintain uniformity in price across locations. A customer in Kolkata is not supposed to pay higher for a McDonald’s burger than an individual in Delhi. But a number of Indian restaurateurs have chalked a different pricing strategy more in sync with Indian realities. “India is a huge country in terms of its length and breadth. One pricing system for a chain is never going to work. Pricing has always been considered as one of the major factors in customer acquisition,” Harmandeep Khurana, Barbeque Company, Brand owner said.  

Local restaurant chains have opted for a tiered pricing strategy considering the wide disparity in spending power and consumption patterns across the country. “Commonly known as the (good-better-best) pricing strategy works much like you would guess it does from the name. It can be a fruitful initiative as it provides choice and flexibility to meet their individual needs as we know a one size fits all option doesn’t work anymore,” Yogesh Sharma, Director, Futomic Group pointed.

While large multinational chains with supply lines spanning the globe can maintain uniformity in the price due to tight control on the cost of raw materials, the model may not be practical for relatively smaller chains. Besides supply-side limitations, demand-side factors too work in the favour of a tiered pricing model. With Tier-2 and Tier-3 cities becoming hospitality hotspots, a number of restaurant operators have entered or are planning to start operations in small cities. 

It has often been observed that people in smaller cities focus more on the value for money and a pricing model more in tune with metro cities may not find many takers. “Pricing will always be a great factor to attract customers along with the deals and offers. After the pandemic, we have to target the economic segment rather than the luxury or elite market. Today's market scenario is to get into QSR along with the cafes rather than big hotels or luxury and fancy restaurants,” Jagdish Kumar, NRI CHAIWALA, said elaborating on the effects of the pandemic on consumer behaviour. 

Having a tiered pricing model in sync with the local socio-economic conditions also helps the restaurant owner accelerate his/her returns on the investment. “When the Barbeque Company decides to open an outlet we deeply study the customer’s nature and behaviour in the city where we are opening the outlet. This has always helped and that is how our outlets reach break-even point within three months of opening an outlet,” added Khurana.

The tiered pricing model has worked for different restaurants in different ways. Some restaurateurs use differential pricing for customer acquisition in newer geographies, others take into account competition and discounts while finalising the pricing strategy. “Getting the pricing right is critical to sales. Every geography has a different "sweet spot" in terms of price. You also have to consider other factors like competitor pricing, discounts, etc. This is definitely not a one solution fits all environment,” Rahul Seth, Co-founder, Burger Singh commented. 

Restaurant owners, however, have to maintain a fine balance between reduced pricing and quality of food and service. The experience for the final consumer should be the same, irrespective of the pricing. “On the flip side, you want to have as consistent a customer experience as possible. We control the prices centrally but discounting is outlet specific, Seth cautioned. 

May Interest: Pricing is done keeping in mind the target customer

If not in restaurants, the concept of tiered pricing has been adopted by many aggregators abroad, including UberEats and DoorDash. To empower every restaurant to meet their individual goals, U.S. restaurants on both DoorDash and Caviar have a choice of three different partnership plans, with commission rates that vary based on the level of marketing support included, similar to the concept of UberEats. Introducing this new pricing structure offers more transparency, aggregators have claimed. 

 
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Beyond the Kitchen: 5 Essential Qualities Required to Start a Food Business
Beyond the Kitchen: 5 Essential Qualities Required to Start a Food Business
 

The world of food has always been more than just sustenance. I have seen it evolve, adapting to changing times—an unfolding narrative of cultures, ambitions, and human connection. As the landscape of dining transforms, from bustling market stalls to opulent hotel dining rooms and the invisible networks of cloud kitchens, one truth remains: food is never just food. It is an experience, a memory, a moment shared.

Over the years, I have watched those who dare to venture into this space begin with a singular focus—the quality of what is placed on the plate. But time has a way of revealing deeper truths. Success is not just about recipes or ingredients; it is woven into something more intangible. It lies in the precision of execution, the warmth of service, the courage to innovate, and the resilience to withstand storms.

Whether in the grand corridors of luxury hotels, the intimate corners of world-class restaurants, or the unseen yet powerful networks of cloud kitchens, I have come to recognize that the true architects of food businesses build on these unseen foundations. Here are five essential qualities that, time and again, I have seen shape the most remarkable food ventures—stories from India and across the globe.

It’s about Detailing

Excellence in the food business is often found in the details. From the crispness of a linen napkin to the precise plating of a dish, every tiny element contributes to the guest experience. A lack of attention to detail can mean the difference between a memorable meal and an average one. In high-end restaurants and hospitality chains, precision is not just preferred—it’s a non-negotiable standard.

Attention to detail in food businesses isn’t about perfection for the sake of perfection; it’s about making every customer feel valued. It signals a deep respect for the craft, a commitment to quality, and an unyielding desire to offer nothing but the best. When a restaurant or cloud kitchen masters the small things, it builds an invisible thread of trust with its patrons—one that turns a single visit into a lifelong relationship.

Service at the Top

The food industry, at its core, is a service-driven business. The intent to serve must go beyond transactions—it should be about making people feel welcomed, comforted, and cared for. The best food businesses don’t just focus on feeding people; they focus on nurturing them.

Eleven Madison Park, one of the most celebrated restaurants in the world, has redefined hospitality through a philosophy of deep personalization and generosity. Under the leadership of Chef Daniel Humm, the restaurant doesn’t just provide a fine dining experience—it creates moments that leave an indelible mark on guests. The team at Eleven Madison Park goes to great lengths to make every diner feel special, whether it’s crafting a dish inspired by a guest’s childhood memory or sending them home with a carefully selected parting gift that resonates with their experience.

Experience Drive Success

A food business with a strong intent to serve naturally creates an atmosphere of warmth and loyalty. Whether it’s a Michelin-starred fine dining establishment or a small cloud kitchen, the way customers feel about their experience will define its long-term success.

Innovation doesn’t always mean reinventing the wheel; sometimes, it’s about recognizing opportunities that others overlook. Whether through menu engineering, technology integration, or unique branding, an innovative mindset ensures that a food business stays relevant and competitive. El Bulli proved that the most groundbreaking ideas often come from a willingness to question everything—and that true innovation is about challenging the status quo.

El Bulli, the legendary restaurant led by Chef Ferran Adrià, revolutionized modern gastronomy through relentless innovation. More than just a restaurant, El Bulli became a laboratory of culinary experimentation, redefining what food could be. Adrià and his team closed the restaurant for six months each year to focus solely on research and development, pushing the boundaries of taste, texture, and presentation.

Resilience is Important

Resilience in the food business is about adapting without losing identity. Whether it’s dealing with supply chain disruptions, pandemic-related shutdowns, or shifting culinary trends, a strong food entrepreneur must possess the grit to rebuild, rethink, and reemerge stronger. Rebel Foods proved that resilience is not just about survival—it’s about thriving through reinvention.

Staff is the Backbone

A food business isn’t just about food—it’s about people. Those that make a lasting impact are the ones that integrate themselves into the community they serve. When customers feel a personal connection with a brand, they become lifelong advocates. Building a community connection doesn’t necessarily mean longevity alone; it’s about staying authentic to your mission and ensuring that customers feel like they’re part of something bigger. Whether it’s through local sourcing, sustainability efforts, or cultural storytelling, businesses that prioritize people over profits naturally cultivate deep loyalty.

The Indian Coffee House is not just a restaurant chain; it is a movement. Established in the early 20th century and later turned into a worker-owned cooperative, Indian Coffee House has been a silent witness to India’s changing social, cultural, and political landscape. What sets it apart is not just its affordable food or simple ambiance, but its deep-rooted connection with the community.

Involvement of Senses

A great meal may delight the senses, but a truly remarkable food business transcends the act of dining. It orchestrates moments that move beyond taste—moments that touch the heart, evoke nostalgia, and create bonds that last a lifetime. It is not just about the technical precision of a perfectly seared steak or the symmetry of a plated dessert; it is about the silent artistry of an experience carefully crafted, where every interaction leaves an imprint on the guest’s memory.

The precision of detail ensures excellence, the intent to serve builds warmth, innovation drives progress, resilience keeps the business standing, and community connection fosters belonging. The true masters of this industry understand that food is only the medium—the real magic lies in the stories it tells and the emotions it stirs.

What separates the truly exceptional from the ordinary is not found in a recipe but in a philosophy—a deep-rooted belief that hospitality is not a service, but a calling. A well-run food business does not merely satisfy hunger; it leaves behind an echo, a lasting presence in the hearts of those it serves. So, as you step into the world of food entrepreneurship, ask yourself: Are you creating meals, or are you creating meaning? Because the greatest food businesses do not just feed the body—they nourish the soul, one experience at a time.

 

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How Emotional Intelligence Help Restaurants Create a More Personalised Experience
How Emotional Intelligence Help Restaurants Create a More Personalised Experience
 

In the dynamic world of food and beverage business, especially restaurant business where taste matters the most and the experience lasts longer, the role of emotional intelligence cannot be over ruled. 

Today, restaurants are not just limited to serving a good food and delivering an everlasting experience, it also involves a deeper connection, empathy and an understanding of what they require. And, that’s where Emotional Intelligence enters into the picture by transforming a good service into a wow! Experience.  

What is Emotional Intelligence?

Emotional intelligence refers to the collection and analysis of data on food consumption, preferences, and trends to gain insights into consumer behavior and the food market as a whole.

It encompasses understanding the journey of food from farm to fork, including production methods, supply chain logistics, and sustainability practices. By leveraging technology such as big data analytics and artificial intelligence, Emotional intelligence helps businesses make informed decisions about product development, marketing strategies, and inventory management, ensuring that consumer needs are met efficiently and effectively.

Creating a Personalised Touch

From a warm welcome at the door to the personalised touches throughout dining, every interaction is packed with warmth, attention to details, leaves guest not just feel satisfied but valued in a long run.

“With Emotional intelligence, restaurants can create customized menus based on customer preferences. For instance, by analyzing data from online ordering platforms or loyalty programs, they can identify each customer’s favorite dishes and make menu recommendations tailored to their tastes,” shared Chef Dheeraj Mathur, Cluster Executive Chef, Radisson Blu, Kaushambi, Delhi NCR.

Commenting on the same, Gopichand Cherukuri, Co-Founder, ICB, pointed that, “For centuries food or beverage has always been an emotional need as much as they are functional need. So it's quite important for brands to understand the customer's mood, preferences and what enables them to make certain choices.”

He also mentioned that a recent survey in Bangalore shared that more than 65% of the customers prefer personalization. “We are not just catering to their functional needs, emotional needs are also equally important for them to decide on where to dine, what to consume. So, emotional intelligence plays a vital role, mapped to the data. And the best part is, AI is a great help in this regard. And ICB is working towards this development to delight our customer base,” he further added.

Sharing a similar insight, Aji Nair, CEO, Mirah Hospitality shared, “Prioritising guest preferences is both a science and an art. It is about knowing what the guest wants—even before they do. Restaurants today blend data analysis with a human touch to anticipate preferences. By tracking dining patterns, guest feedback, and emerging food trends, we create menus that resonate with our customers. But beyond data, it’s the art of reading the room—understanding a guest’s body language, mood, or subtle cues—that allows us to personalize their dining experience. The right mix of insights and intuition helps us craft meals that feel both thoughtful and memorable."

Helping Menu Design

Staying ahead of emerging trends, fluctuating consumer needs, and tastes is essential for success. One of the crucial aspects of adapting to this is effective menu planning, which involves creating innovative, appetizing, and visually appealing dishes that cater to a diverse clientele.

“Our commitment to sensory-driven innovation—whether through umami-rich ingredients, natural sweeteners, or immersive tableside finishes - ensures that every dish tells a story and every meal becomes an experience to remember. In a city where food trends evolve rapidly, we stay attuned to local tastes and global influences, creating meaningful connections through food that touches the heart as much as it delights the palate,” pointed Gagandeep Singh Sawhney, Executive Chef & Culinary Centre of Excellence Cuisine Specialist, MEIA Region at Shangri-La Group.

By using the power of real-time analytics, data-driven insights, and artificial intelligence, Emotional intelligence is transforming the way culinary professionals approach menu planning.

"The dining experience extends beyond food—it’s about forging emotional connections. At Hitchki, emotional intelligence is integral to menu development, allowing us to craft offerings that resonate deeply with our guests. By decoding moods, nostalgia triggers, and cultural influences, we design menus that evoke comfort, excitement, and curiosity. Whether it’s curating seasonal specials that spark memories or reinventing flavors to align with evolving preferences, our approach ensures every dish feels both personal and refreshingly innovative,” added Nair.

 

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