A bustling bistro in Amsterdam increased their average bill by €2.10 per guest simply by removing euro signs from their menu. But how do you calculate whether this psychological pricing technique actually impacts your margins? Here's your step-by-step guide to measuring the financial impact of this menu psychology approach.
Why removing euro signs works
Research shows that prices without euro signs cause less 'pain' during ordering. Instead of '€ 24.50' you simply write '24.50' on your menu. This phenomenon is called 'payment depreciation' - guests think less consciously about the costs.
💡 Example:
Restaurant with 100 covers per day tests 2 weeks without euro signs:
- Week 1 (with €): average bill €32.40
- Week 2 (without €): average bill €34.80
- Difference: €2.40 per guest
Extra revenue: €2.40 × 100 × 7 = €1,680 per week
Setting up the A/B test
To measure the impact accurately, you'll test two versions of your menu. Divide your test period into two equal periods of at least 2 weeks each. Make sure external factors like weather, events, and seasonality remain comparable between periods.
⚠️ Note:
Avoid testing during holidays or special events. The difference in guest behavior should stem from your menu changes, not external circumstances.
Which figures you need to track
For reliable measurement, you'll need this data:
- Average bill value per period (total revenue divided by number of covers)
- Number of covers per day
- Sales per dish (which dishes get ordered more frequently?)
- Add-on sales (desserts, extra drinks, appetizers)
Calculating the margin impact
Extra revenue doesn't automatically equal extra profit. You need to account for the additional costs of more dishes sold. This oversight is a mistake that costs the average restaurant EUR 200-400 per month when they don't factor in their increased food costs properly.
💡 Calculation:
Restaurant with €2.40 extra per guest:
- Extra revenue per month: €2.40 × 100 × 30 = €7,200
- Average food cost: 30%
- Extra food cost: €7,200 × 0.30 = €2,160
Net margin impact: €7,200 - €2,160 = €5,040 per month
What you typically see happen
Restaurants that remove euro signs usually experience:
- 5-8% higher average bill value due to reduced price awareness
- More add-on sales (desserts, extra drinks)
- Less discussion about prices at bill payment
- Higher spending on premium dishes
💡 Real-world example:
Bistro in Amsterdam tests 4 weeks:
- Period 1 (with €): 85 covers/day, €29.80 average
- Period 2 (without €): 85 covers/day, €31.90 average
- Difference: €2.10 per guest = 7% increase
Monthly margin impact: €3,570 extra profit
Weighing potential downsides
Not all guests react positively to prices without euro signs. Some find it misleading or unprofessional. So also measure:
- Complaints or remarks about the menu format
- Online reviews mentioning the price display
- Repeat visits (do guests return?)
The ROI of a new menu
A new menu costs money. Calculate how much extra revenue you need to break even on this investment.
💡 ROI calculation:
New menus cost €800:
- Extra margin per month: €5,040
- Payback period: €800 / €5,040 = 0.16 months
Break-even after 5 days
How do you calculate the margin impact? (step by step)
Measure your current average bill value
Calculate for 2 weeks: total revenue divided by number of covers. This is your baseline. Also note how much of each dish you sell.
Test 2 weeks without euro signs
Print new menus without the € symbol. Measure again the average bill value and sales per dish. Make sure other conditions remain the same.
Calculate the net margin impact
Subtract the extra food cost from the extra revenue. Extra revenue × your average food cost percentage = extra costs. The difference is your net margin gain.
✨ Pro tip
Test this change for exactly 28 days to capture full weekly patterns and seasonal variations. You'll often discover that premium dishes get ordered 15-20% more frequently without euro signs visible.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
How long should I test to get reliable results?
At least 2 weeks per version, preferably 4 weeks. Shorter periods create too many random fluctuations due to weather or other external factors.
What if my average bill value doesn't increase?
Then this technique doesn't work for your target audience. Some restaurants see no effect, especially with very price-conscious guests or lunch concepts.
Should I also remove the euro sign from drinks?
Test this separately. With drinks, the effect is often greater because guests are less aware of drink prices than dish prices.
Can I combine this with other menu psychology techniques?
Yes, but test one technique at a time. Otherwise you won't know which change caused the effect. Start with euro signs, then make other adjustments.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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