Price elasticity
Example: A neighborhood trattoria raises its menu about 6% and, in line with a rough rule of thumb, loses roughly 2 to 3% of covers, so the owner uses a slider to test what happens if that elasticity guess is off by a point.
how cover count moves with price
How much cover count changes when prices change. Rough working rule in independent dining: a 6% menu-wide raise typically loses 2–3% of covers. Elasticity varies by item (signatures: low; anchors: high), daypart, and neighborhood.
Why it matters
The whole math of a price raise lives in this one coefficient. Two restaurants can raise 6% and get opposite results — one gains margin; one loses covers. The Price-Raise Simulator lets you dial elasticity with a slider so you can model "if my guess is wrong by a point, what happens?"
Frequently asked
What is price elasticity?
Price elasticity is how much cover count changes when prices change. Rough working rule in independent dining: a 6% menu-wide raise typically loses 2–3% of covers. Elasticity varies by item (signatures: low; anchors: high), daypart, and neighborhood.
Why does price elasticity matter for a restaurant?
The whole math of a price raise lives in this one coefficient. Two restaurants can raise 6% and get opposite results — one gains margin; one loses covers. The Price-Raise Simulator lets you dial elasticity with a slider so you can model "if my guess is wrong by a point, what happens?"
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