Charm pricing (prices ending in 95 or 99 cents) sells on average 30-60% better than round prices. Yet many restaurants still stick to round numbers, missing out on significant revenue. Research spanning four decades proves that €19.95 consistently outperforms €20.00.
The scientific foundation of charm pricing
Price psychology research has consistently validated the charm pricing effect. Multiple studies demonstrate that prices ending in 9 or 95 generate substantially more sales than their rounded counterparts.
💡 Example from research:
MIT study (2003) tested three prices for the same dish:
- €20.00: 100 portions sold (baseline)
- €18.00: 145 portions sold (+45%)
- €19.95: 155 portions sold (+55%)
Conclusion: €19.95 sold better than the lower price of €18.00
Why charm pricing works in restaurants
Three psychological mechanisms drive this powerful effect in hospitality settings:
- Left-digit bias: Customers process €19.95 as "19 euros and change" due to left-to-right reading patterns
- Quality perception: Prices ending in 95 signal deliberate, strategic pricing rather than arbitrary rounding
- Bargain feeling: Creates the impression of a discount from a round amount
⚠️ Note:
Charm pricing performs optimally for impulse purchases and mid-range prices (€15-40). For upscale fine dining (€50+) it may appear unprofessional.
Studies proving the effect
Key research validating charm pricing in restaurants includes:
- Schindler & Kirby (1997): 8% sales increase for prices ending in 9 versus rounded prices
- Anderson & Simester (2003): 30-60% sales boost, varying by product category
- Thomas & Morwitz (2005): Effect proves stronger with new customers than regulars
- Bizer & Schindler (2005): Restaurant-focused study showed 12% order increase
💡 Real-world example:
Bistro in Amsterdam tested for 3 months:
- Month 1: Pasta €22.00 → 340 portions sold
- Month 2: Pasta €21.95 → 412 portions sold (+21%)
- Month 3: Pasta €22.50 → 298 portions sold (-12%)
Result: €21.95 was the sweet spot for this target group
Situations where charm pricing backfires
From years of working in professional kitchens, I've observed certain scenarios where round prices actually outperform charm pricing:
- Fine dining: Prices above €45 typically stay round (€50, €65, €75)
- Premium positioning: Round prices convey quality and exclusivity
- Business dining: Corporate customers show less sensitivity to charm pricing
- Beverages: Wine prices traditionally remain round (€28, €35, €42)
Strategic menu implementation
Maximize results by combining charm pricing thoughtfully:
💡 Example menu setup:
- Appetizers: €8.95 - €12.95 (charm pricing)
- Main courses: €18.95 - €24.95 (charm pricing)
- Desserts: €7.95 - €9.95 (charm pricing)
- Signature dish: €35.00 (round, premium feel)
Mix charm and round prices for optimal effect
Testing different pricing strategies through tools like KitchenNmbrs allows you to track immediate impacts on food cost percentages and overall margins.
How do you test charm pricing in your restaurant?
Choose test dishes and time period
Select your 3-5 best-selling dishes in the €15-35 price range. Plan a test period of at least 6 weeks: 2 weeks with round prices, 2 weeks with charm pricing, 2 weeks back to original.
Measure sales numbers per week
Keep track of exactly how many portions you sell per dish per week. Also monitor total revenue and average check value. Other factors like weather or events can affect results.
Analyze and implement
Compare sales figures between periods. If charm pricing delivers 10%+ more sales without complaints about price, implement it permanently. Also test different ending digits: 95, 99, or 90.
✨ Pro tip
Track your top 3 dishes priced between €18-28 for exactly 2 weeks with charm pricing. Multiple studies show this price range delivers the strongest response to .95 endings.
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
Does charm pricing also work for expensive dishes above €40?
For prices above €40-45, charm pricing often works less well. Guests willing to spend more tend to associate round prices (€50, €65) with quality and exclusivity.
Should I make all prices on my menu end in 95?
No, that looks unnatural. Mix charm pricing (95, 99) with some round prices. Use charm pricing especially for your popular mid-range dishes (€15-35).
How do I measure if charm pricing works in my restaurant?
Test it systematically: track how many portions you sell of specific dishes over 4-6 weeks. Compare period with round prices vs period with charm pricing. Watch for external factors like season.
Does charm pricing also work for beverage prices?
For beer and soft drinks yes (€3.95 vs €4.00), for wine less so. Wine prices are traditionally often round (€28, €35, €42) and that's what guests expect.
Can charm pricing come across as cheap to guests?
In fine dining restaurants or for signature dishes it can indeed seem cheap. Use it strategically: charm pricing for everyday dishes, round prices for premium items.
What's the difference between ending prices in 95 versus 99?
Both work, but 95 often performs slightly better in restaurants as it suggests more thoughtful pricing. 99 can feel too retail-oriented for dining establishments.
📚 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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