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📝 Menu psychology & menu engineering · ⏱️ 2 min read

When is it better to use round prices instead of charm pricing?

📝 KitchenNmbrs · updated 15 Mar 2026

Most restaurants think charm pricing (€19.95) always beats round prices (€20.00) – but that's not true. Round numbers actually feel more premium and trustworthy for upscale dining, expensive wines, and exclusive dishes. Sometimes ditching the €X.95 trick strengthens your brand more than it hurts your wallet.

When round prices work better

Charm pricing (€19.95 instead of €20.00) doesn't always win. Certain situations and customer groups respond better to round numbers:

  • Premium positioning: €50.00 feels more exclusive than €49.95
  • Easy calculations: guests can quickly figure out what they're spending
  • Trust: no 'cheap tricks', transparency
  • Faster checkout: less change needed, quicker payment processing

💡 Example - Fine dining restaurant:

Two similar restaurants, same quality:

  • Restaurant A: Main course €32.95
  • Restaurant B: Main course €35.00

Restaurant B feels premium, A feels like they have to 'compete' on price.

By business type and customer group

Your concept and clientele determine whether round or charm pricing works better:

Round prices work better for:

  • Fine dining: €45, €65, €85 per dish
  • Wines above €30: €40, €50, €75 per bottle
  • Business customers: calculate quickly, appreciate transparency
  • Group packages: €35 per person is clearer than €34.95
  • Premium cocktail bars: €12, €15, €18 per cocktail

Charm pricing remains effective for:

  • Casual dining: €16.95, €21.95 feels more affordable
  • Family businesses: parents calculate more carefully
  • Lunch menus: €12.50 attracts more than €13.00
  • Delivery: online customers are price-sensitive

⚠️ Heads up:

Don't mix round and charm prices on the same menu. Choose one system and stick with it consistently. Otherwise you'll confuse your guests.

Impact on revenue and margin

Round prices can boost your revenue per guest, even if prices are higher. After managing kitchen operations for nearly a decade, I've seen restaurants increase profits by 15-20% just by switching their pricing strategy.

💡 Example - Revenue calculation:

Bistro with 100 covers per day:

  • Charm pricing: avg. €23.50 per person
  • Round prices: avg. €25.00 per person
  • Difference: €1.50 per guest

Extra revenue: €1.50 × 100 × 6 days × 52 weeks = €46,800 per year

But watch your food cost. If you go from €23.95 to €25.00 (+4.4%), you need to keep your ingredient costs under control. With the same ingredient costs, your food cost percentage automatically decreases.

Test in practice

Test what works for your business and guests. Try round prices for a month on selected dishes:

  • Measure revenue per guest before and after the change
  • Check feedback: do guests complain about price increases?
  • Compare sales numbers of adjusted dishes
  • Calculate margin impact per dish

With tools like KitchenNmbrs you can see your food cost percentage per dish directly, even after price changes. This way you can check if round prices improve your margin.

How do you choose between round prices and charm pricing?

1

Analyze your target audience and concept

Fine dining and business customers appreciate round prices. Families and price-conscious customers respond better to charm pricing. Determine what fits your concept.

2

Test on a selection of dishes

Choose 3-5 popular dishes and adjust the pricing. Measure revenue per guest and sales numbers for 4 weeks. Compare with the previous period.

3

Calculate the impact on your margin

Check if your food cost percentage improves with higher prices. If you go from €23.95 to €25.00 with the same ingredient costs, your food cost automatically decreases.

✨ Pro tip

Test round prices on your 5 highest-margin dishes for exactly 30 days. If revenue per table increases without losing covers, you've found your sweet spot.

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Frequently asked questions

Can round prices increase my revenue?

Yes, especially for premium concepts. Guests accept higher round prices more easily than you'd think, especially if the quality matches. Test it on a few signature dishes first.

Does my entire menu need round prices?

No, but stay consistent within categories. All main courses round, all appetizers charm pricing. Don't mix them on the same page or guests get confused.

Do round prices work for delivery too?

Less effective online. Digital customers compare prices more carefully and expect deals. Charm pricing (€16.95) often converts better than round prices (€18.00) for delivery platforms.

How do guests react to switching to round prices?

If you improve quality or presentation simultaneously, they barely notice. Frame it as 'menu simplification', not as a price increase.

Which price points should I round up to?

Dishes above €20 can usually handle rounding. From €18.95 to €20.00 feels natural. But €12.95 to €15.00 is too big a jump for most concepts.

Should I round wine prices differently than food?

Premium wines above €40 benefit most from round pricing – it signals quality. But house wines under €25 often sell better with charm pricing since customers are more price-conscious.

ℹ️ This article was prepared based on official sources and professional expertise. While we strive for current and accurate information, the content may differ from the most recent regulations. Always consult the official authorities for binding standards.

📚 Sources consulted

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.

JS

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.

🏆 8 years kitchen manager at 1NUL8 Group Rotterdam
Expertise: food cost management HACCP kitchen management restaurant operations food safety compliance

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