advertisement
1. "It's more about the sizzle than the steak."
Business is good for the restaurant industry. Americans now spend roughly half their food budget dining out, and restaurants expect revenue of more than $537 billion in 2007. That's a 67% increase since 1997.
But it's not just our collective avoidance of the kitchen that's pumping profits: Restaurants work every angle these days, using marketing psychology to get you to spend more.
At legendary Aureole Las Vegas, spandex-clad "wine angels" retrieve bottles from a 42-foot-tall spirits tower. The thinking behind the spectacle: "Anything that gets patrons' attention will get them to spend," says restaurant designer Mark Stech-Novak.
Fast-food outlets use a high-stimulus environment to maximize the source of their profit: "It encourages faster turnover," says Stephani Robson, a senior lecturer at the Cornell School of Hotel Administration. "Specifically, the use of bright light, bright colors, upbeat music and seating that does not encourage lolling."
Even menus are rigged. "We list the item that makes the most profit first so it catches your eye," says restaurant consultant Linda Lipsky, "and bury the highest-cost item in the middle."
2. "Eating here could make you sick."
The 2006 E. coli outbreak that started at a New Jersey Taco Bell and sickened more than 60 people was traced to green onions. But food-borne illness isn't the only cause for concern: In a separate December incident, 373 people in Indianapolis got sick after eating at an Olive Garden where three employees tested positive for the highly contagious norovirus.
"You don't call out (sick) unless you're on your deathbed," says freelance chef Leah Grossman. Indeed, according to a recent study, 58% of salaried New York City restaurant workers reported going to work when sick; the number is even higher for those without benefits.
"A lot of poor, transient people work in restaurants," says Peter Francis, a co-author of industry exposé "How to Burn Down the House." "They're not giving up the $100 they'd make in a shift because they're sick."
How can you protect yourself? Check inspection results, which are often posted online by local departments of public health. Or just visit the restroom; it "tells you everything you need to know about a restaurant," Francis says.
More from MSN and SmartMoney
3. "Our markups are ridiculous."
It's no secret that restaurants enjoy huge markups on certain items: Coffee, tea and sodas, for example, typically cost restaurants 15 to 20 cents per serving, and pasta, which costs pennies, can be dressed up with more expensive fare and sold for $25 a dish or more. At a fine-dining restaurant, the average cost of food is 38% to 42% of the menu price, says Kevin Moll, the CEO and president of National Food Service Advisors. In other words, most restaurants are making roughly 60% on anything they serve.
It's not all gravy though. Restaurants keep only 4 cents of every dollar spent by a customer, says Hudson Riehle, the vice president of research and information services at the National Restaurant Association. The remainder of the money, he says, is divided among food and beverage purchases, payroll, occupancy and other overhead costs.
Given the slim profit margin, many restaurants rely on savvy pricing to create the illusion of value. Putting a chicken dish on the menu for $21 will make a $15 pasta dish, where the restaurant is making a big profit, seem like a bargain, says Gregg Rapp, the owner of consulting firm MenuTechnologies.net.
- MSN City Guides: Find a restaurant near you
4. "Big Brother is watching you . . . eat."
No one likes having their every move scrutinized, but that may be just what's happening at your favorite restaurant. Cameras are popping up everywhere, from four-star eateries to the place where you grab your lunchtime sandwich.
At historic Randy's Steakhouse in Frisco, Texas, where checks average $45 to $50, co-owner Don Burks has installed 12 cameras around the premises. Of those, two pick up activity in the dining rooms, and two are aimed at the bar.
"We've had customers stand on chairs to try to take out a camera," Burks says. "But the cameras aren't even pointed at them; they're pointed at the wine rack." Their primary purpose: deterring employee theft.
At some restaurants, however, the cameras are indeed trained on the tables. At New York City's four-star Daniel, for example, four closed-circuit cameras monitor the dining rooms, offering a bird's-eye view of every plate.
"It's about maintaining a quality of service," says Daniel spokeswoman Georgette Farkas. "With the cameras, the chef can tell when each course needs to be plated and served." So much for that romantic dinner for two.
Video on MSN Money
Successful complainingYelling may feel good, but when it comes to getting resolution to your consumer complaint, there are better ways to succeed.
5. "There's something fishy about our seafood."
Even when you pay top dollar for a seafood dish, you might not get what you're expecting. About 70% of the time, for example, those Maryland crab cakes on the menu weren't made using crabs from Chesapeake Bay, says James Anderson, the chairman of the Department of Environmental and Natural Resource Economics at the University of Rhode Island. Because of high demand, crabs are often from other Eastern states or imported from Thailand and Vietnam. (Look closely at the menu: "Maryland-style" crab is the giveaway.)
There's also the problem of outright substitution -- inexpensive fish, such as pollack, getting passed off as something pricier, like cod. How widespread is the problem? In 2006 the Daytona Beach (Fla.) News-Journal sent fish samples to a lab to prove that four out of 10 local restaurants were pawning a cheaper fish as grouper. The same lab also checked seafood from 24 U.S. cities and found that, overall, consumers have less than a 50-50 shot at being served the fish they ordered.
What can you do? Ask where the fish comes from. "If they're not sure if the fish is from Alaska or Asia, I order the beef," Anderson says.
Continued: "Reservation? What reservation?"
Rate this Article
High
