Ask George: Why do restaurants charge different prices for the same item at lunch and dinner?

Ask George: Why do restaurants charge different prices for the same item at lunch and dinner? Brant B, St. Louis

My initial response is that different sized portions are served at each meal period–hence the price difference–but on closer inspection I discovered that this is only part of the issue.

While the above scenario is true at most every restaurant, it pertains mainly to entrees (the customer gets half a chicken breast at lunch and a whole breast at dinner, for example).

Many restaurants do, however, charge slightly different prices for appetizers, sandwiches, and burgers at dinnertime, and do so for several reasons, according to restaurant cognoscenti.

My basic contention is that in the U.S., the lunch period is for eating while dinner is geared more for dining, and dining commands higher prices. Chris LaRocca, owner of local mini-chain Crushed Red and longtime restaurant consultant agreed:  “Lunch is seen a convenience, mainly for fueling your body–usually quickly–while dinner is often more elegant, and more of a experience. For that reason, we have become accustomed to paying more for dinner than lunch.” (Which is true, you might say, except in the case of fast food. But think about it: the experience at McDonald’s is the same at lunch and dinner, hence the consistent pricing throughout the day.)

LaRocca views appetizers and desserts differently at lunch vs dinner. “These items traditionally do not sell well at lunch,” he said. “So if lowering the price a dollar or two can generate a sale and still turn a profit, I say go for it…I look at those sales as found money.”

There’s another financial aspect as well: The lunch market is highly competitive and very price driven. Higher prices—even just an extra dollar here or there–may be enough to send diners elsewhere.

A GM of a successful upper-tier chain restaurant agrees, noting that competition drives prices at lunch and that diners expect that meal to be reasonably priced. Another corollary is that having a full house at lunch will offset the effect of a handful of price reductions.

And one must remember that a pleasant lunch experience may generate a return trip for dinner, when larger groups, multiple courses–to say nothing of cocktails, beer, and wine—come into play. I could argue that dinner is the most important reason to keep lunch prices reasonable.