New Study Reveals How Diners Really Respond to Restaurant Price Increases
Eye-tracking research from Revenue Management Solutions finds perceived value — not price explanations — drives spending and loyalty.
Tampa, Fla., Nov. 04, 2025 (GLOBE NEWSWIRE) -- With 72% of diners believing restaurants are too expensive, operators are searching for ways to protect profitability without losing customer trust. A new study from restaurant price leader Revenue Management Solutions (RMS) and revenue management expert Sherri Kimes reveals how guests actually respond to communication on price increases — and what restaurant brands should do to protect margins and maintain customer loyalty.
The research finds that calling attention to price increases does not improve loyalty or revenue. Brands that reinforce value through menu design —like bundles, value meals and strategic pricing — are more successful at preserving traffic and margins.
About the Study
Using remote eye-tracking technology, RMS Senior R&D Analyst Yuqi Wang and Cornell University Professor Sherri Kimes conducted three controlled experiments with 358 participants (50–80 per task group) to understand how guests perceive and react to price increase announcements.
What the Study Revealed
- Transparency builds trust, not spend.
Guests rated restaurants as fairer when price messages were displayed, but actual or intended spending remained unchanged. - Placement matters minimally.
Messages at checkout were more visible than on menus or receipts but did not influence purchasing decisions. - Most guests overlooked price explanations.
Eye-tracking heatmaps revealed guests focused on menu items and prices, not explanatory text.
“Our data show transparency alone does not drive loyalty or higher spend,” Wang says. “Guests are far more influenced by the value they perceive than by explanations for price increases.”
Highlighting price increases may even backfire in fast-moving environments like quick-service restaurants, where menu space is limited and cognitive load is high.
Three Recommended Strategies for Restaurant Operators
RMS recommends focusing on a value-led menu strategy rather than messaging about price increases:
1. Let Data Lead.
Use POS data, traffic trends and competitor benchmarks to anticipate guest reactions. Increase prices on low-sensitivity items, stagger adjustments and avoid sticker shock. RMS’s Price Studio provides AI-powered, real-time pricing insights, letting operators model scenarios and assess their impact on sales, margins and traffic before making changes.
2. Optimize Menu Items and Bundles.
Re-engineer recipes to control costs without compromising satisfaction. Combine popular items into bundles to increase perceived value and increase check sizes.
3. Focus on Low-Risk Opportunities.
Promote add-ons, upsells and limited-time offers where small price increases are tolerated. Apply targeted discounts only where needed to recover spend.
“Don’t waste menu space explaining price increases. Customers want to decide what they are going to order, not read justifications,” Kimes says.
Bottom Line: Value Drives Behavior
The study confirms that diners judge fairness based on value — the quality, service and experience — rather than messaging justifying price increases. “As long as guests feel the experience matches the price, explanations become unnecessary,” Wang adds.
As restaurant brands navigate inflation and changing consumer expectations, RMS’ findings provide actionable, data-driven guidance to protect margins without undermining customer confidence.
About Revenue Management Solutions
Revenue Management Solutions (RMS) partners with restaurant brands to deliver actionable insights and data-driven solutions that increase sales, improve unit economics, and maximize profitability. With AI-powered solutions supporting over 150,000 locations worldwide, RMS helps brands navigate challenges such as inflation and rising labor costs with clarity and confidence. Discover how RMS can turn your data into a competitive advantage at www.revenuemanage.com.
Attachments
Tracy Henderson Revenue Management Solutions 720-989-3530 tracy@centerreachcommunication.com
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