Skip to main content

Pricing Strategies in the Restaurant Industry

Buy Article:

$55.00 plus tax (Refund Policy)


Pricing is known by economists and managers to be an important tool for increasing revenue and thereby ensuring the success of the company. However, practical experience shows that companies rarely consider the development of a strategic pricing program to be a priority. Furthermore, when times are getting tough, pricing issues tend to be ignored and priority rather given to various cost reduction schemes. In this paper we investigate different pricing strategies and assess their relevance for a segment of the restaurant industry, the pizza chain market. The reported study examines the potential for using pricing strategies as a strategic tool for revenue enhancement, both through increasing the number of customers and by capturing a larger share of the consumer surplus. The findings indicate that there is potential for increased use of several pricing strategies such as price discrimination, peak-load pricing and bundling. Managerial implications and suggestions for future research are highlighted.

Keywords: Norway; Pricing strategies; demand-based pricing; restaurant industry; revenue management

Document Type: Research Article


Affiliations: 1: Norwegian School of Hotel Management, University of Stavanger, 2: SpareBank 1 SR-Bank, 3: Norwegian School of Economics and Business Adminstration, Bergen, Norway

Publication date: 2008-10-01

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more