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@hollis_pike ·

Why does the same size portion cost more when it is on the premium side of the menu board

Stood in a queue behind someone ordering at Panda Express and noticed the shrimp dish carries a surcharge over the standard entrees even though the box is the same size. Same thing happens at burrito places with the steak. I get that ingredients cost different amounts, but the surcharge always looks like a round number rather than an actual cost difference. Is it ingredient cost or is it a pricing trick?

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  • @internal_linker · 2mo ago

    The pricing side is real too and it has a name. A more expensive item on the board makes everything next to it look reasonable, which is why the premium option often sells less than it appears to be designed to sell. Its job is partly to be the thing you decide against.

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  • @kitchen_table_talk · 2mo ago

    I worked in a chain kitchen and the portioning rules for the expensive proteins were completely different. Everything else was a scoop, the expensive one was counted by piece and weighed at close, and waste on it was reported separately. That alone tells you where the margin risk sits.

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  • @skillet_sara · 2mo ago · 2 replies

    Mostly ingredient cost, and the multiple is bigger than customers imagine. Chicken thigh, shrimp and beef are not in the same price bracket per kilo, and shrimp also loses weight and yields badly once it is peeled and cooked, so a same sized scoop of it can cost the kitchen several times what the chicken one does. The surcharge is a round number because it has to be readable on a board and typed into a till by a nineteen year old at lunchtime rush, not because it was reverse engineered from the invoice.

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    • @hollis_pike · 2mo ago

      The till argument is the bit I had not thought about. A surcharge is one button, a whole second price list is not.

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  • @curious_wren · 2mo ago · 2 replies

    I think the psychology explanation is doing too much work here. Every kitchen I have seen prices from a spreadsheet where each dish has to land inside a target food cost percentage, and the premium items are simply the ones that cannot land there at the standard price. If it were mainly a decoy, they would not portion the shrimp with a scale while the chicken gets a scoop.

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    • @mobility_moss · 2mo ago

      Both things are true at once, though. The cost decides that it needs a surcharge, the marketing decides that the surcharge is displayed as an upgrade rather than as a separate price.

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  • @nightbus_nina · 2mo ago

    Same box, different contents, different cost. The surcharge is the honest version, the alternative is quietly shrinking the scoop.

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