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

Consumers are leaving their cars and going into restaurants

The Bottom Line: Drive-thru traffic has steadily fallen since the pandemic, even as other off-premise channels remain strong. That traffic has shifted back to the restaurants. Did the industry overdo the drive-thru?

Financing

In the 10 largest restaurant chains, signs of the industry’s evolution

The Bottom Line: Only 14 chains have been on the list of the 10 largest concepts over the past two decades. But that doesn’t mean that it hasn’t changed with consumer demand.

Emerging Brands

Olive & Finch lets diners dictate how they want to experience the brand

This growing premium fast casual out of Denver is expanding with an all-day menu priced no higher than $20. Part of the value offering is giving guests options for how they use the concept.

Trending

More from our partners