Decoy System in Restaurant Service

The **decoy system** in restaurant service refers to using a strategically designed menu or service approach to influence customer choices, often encouraging them to select higher-priced or more profitable items. It is based on the **decoy effect**, a psychological phenomenon where customers are more likely to choose an option when a less attractive "decoy" is placed alongside it.

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### **How the Decoy System Works**
1. **Three-Tier Pricing Strategy:**
- Offer three options:
- **Low-Priced Option:** Basic and less desirable.
- **Mid-Priced Option (Target):** The most profitable and attractive.
- **High-Priced Option (Decoy):** Premium, but overpriced or slightly less value-for-money.
- Example:
- Small Pasta: $8 (low-priced).
- Regular Pasta: $14 (target option).
- Extra-Large Pasta: $22 (decoy).

Customers tend to choose the mid-priced option because it appears to offer the best value.

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### **Applications in Restaurant Service**
1. **Menu Design:**
- Highlight a mid-priced item as the best value (e.g., with a box, bold font, or chef’s recommendation).
- Use the decoy effect to upsell by making the target item more appealing compared to the decoy.

2. **Wine List:**
- Offer three options for a glass or bottle of wine:
- The cheapest wine (basic option).
- A mid-range wine (target option).
- An expensive premium wine (decoy).

Most customers will choose the mid-range wine because they want a good experience without spending excessively.

3. **Meal Add-Ons:**
- Offer combo deals where the add-ons appear to cost less in comparison to buying them separately.
- Example:
- Sandwich: $6
- Sandwich with Drink: $8 (target option).
- Sandwich with Drink and Dessert: $13 (decoy).

4. **Upselling Techniques:**
- Suggest an upgrade or slightly larger portion size for a small additional cost.
- Example:
- "Would you like to add a side salad for $2 more?"

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### **Benefits of the Decoy System**
- **Increases Revenue:** By steering customers toward mid-priced, high-margin items.
- **Enhances Customer Perception of Value:** The decoy option makes the target option seem like a bargain.
- **Improves Decision Making:** Simplifies choices and reduces hesitation for customers.

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### **Tips for Implementing a Decoy System**
- Keep it subtle: Avoid making the decoy too obvious.
- Balance quality and pricing: Ensure that all options are appealing to maintain customer trust.
- Regularly review results: Analyze sales data to see if the system is working effectively.

Would you like help designing a decoy strategy for a specific menu or service?