Food quality isn’t all-important at restaurants, new study finds

joans park food plate

Ambiance and service attributes—not food quality—have the most dramatic positive impact on consumers’ willingness to pay more at restaurants, according to a new study. 

The importance of ambiance and service over food quality is especially apparent at high-priced concepts, found the report, which was published in the International Journal of Revenue Management and comes from the University of Denver's Daniels College of Business.

Cuisine type also has a marked effect on how much consumers are willing to pony up at restaurants, the report shows, noting that most consumers are generally willing to pay more at a French restaurant than a Chinese or Mexican one.

“This difference is based on the assumption that French cuisine is inherently more complex and labor intensive compared to Chinese or Mexican cuisines and thus demands higher prices,” the study states.

It also points out that the relationship between restaurant attributes and price point is concave at high-priced concepts but convex at their lower-priced counterparts. In other words, high- and low-end restaurants should be managed differently in terms of food quality, service and ambiance.

The recent study examined 2,705 restaurants in the New York City area on food quality, ambiance and service, in order to analyze consumers’ willingness to pay. 

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

In Red Lobster, a symbol of the challenges with casual dining

The Bottom Line: Consumers have shifted dining toward convenience or occasions, and that has created havoc for full-service restaurant chains. How can these companies get customers back?

Financing

Crumbl may be the next frozen yogurt, or the next Krispy Kreme

The Bottom Line: With word that the chain’s unit volumes took a nosedive last year, its future, and that of its operators, depends on what the brand does next.

Technology

4 things we learned in a wild week for restaurant tech

Tech Check: If you blinked, you may have missed three funding rounds, two acquisitions, a “never-before-seen” new product and a bold executive poaching. Let’s get caught up.

Trending

More from our partners