In 2007, a teaching restaurant in Hyde Park, New York ran three versions of the same lunch menu — one with dollar signs, one with bare numbers, one with prices spelled out in words. The checks came back different, and the version everyone expected to win didn't. The usual explanation is that a bare number just looks cleaner. That explanation falls apart on the third menu. What the menu is really avoiding isn't an ugly character — it's a reminder. And the strangest part is what the researchers found when they checked their own numbers.
Sources: Yang, Kimes & Sessarego, Cornell Hospitality Report (2009) · Cornell Chronicle (2009) · Guéguen et al., International Journal of Hospitality Management (2009) · Yang, IJHM (2012) · Naipaul & Parsa, Cornell HRA Quarterly (2001) · U.S. Bureau of Labor Statistics (2007)
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Financial Minds explains why things cost what they cost — the business model behind it, the design decision behind that, and the person who figured it out first.
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Video Summary
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This video explores the psychology of menu pricing and design, examining how subtle changes in how prices are presented—such as removing currency symbols or using specific digits—influence consumer spending. It discusses the \"pain of paying\" and challenges industry myths regarding \"sweet spots\" in menu layouts, ultimately framing these tactics as attempts to soften the transactional nature of dining.
In 2007, a teaching restaurant in Hyde Park, New York,
started handing out lunch menus with no dollar signs
on the prices, just bare numbers on the page.
Other tables got the symbol.
There was a third version, too, with the prices
spelled out in words.
All three ran through the lunch service
from early August to the middle of November,
handed out at random.
Students took the orders.
Somebody had the soup.
Nobody eating new.
Same dishes, same prices, same room,
on the page in front of you.
The only thing that changed was how the numbers were printed.
Then the checks came back, and they weren't the same.
The researchers went in with a favorite.
Theory told them which three bistro would sell the most,
and theory turned out to be wrong.
Which menu they backed and why it lost
is the reason the menu you'll be handed at dinner
probably has no dollar sign on it.
Ask most people why nice restaurants dropped the symbol
and you get the same answer, and it's a reasonable one.
It looks cleaner.
A bare number sits quietly on the page.
It looks confident, a little restrained,
the way expensive things are supposed to look.
It's a design choice.
It's taste.
That answer falls apart on the third menu,
because if this were about looking good,
the written-out version should have done fine.
$20, spelled out in the same typeface as the food,
no numerals interrupting the page at all.
It's arguably the most elegant of the three.
It reads like a wedding invitation.
That's the one the team expected to win.
It didn't.
It performed about the same as the menu,
with dollar signs all over it.
The winner, the one where guests spent more,
was the plain numerals.
Just the number sitting there like a page count.
So it isn't the symbol.
The dollar sign and the word dollars did equal damage,
which tells you the menu was never fighting a character.
It was fighting a reminder, any reminder.
There's a name for what that reminder does.
Researchers call it the pain of paying,
and it's not a metaphor for anything clever.
It's the small, real flinch you feel
when money leaves your hands.
It's the reason people will bid more for the same thing
with a card than with cash.
Nothing about the item changed, only the sting did.
And in that dining room, the flinch had a price.
Tables that never saw a currency queue
ran about $5.55 higher.
At what a full-time job in America paid that fall,
that's a bit under 20 minutes of work added to the bill.
20 minutes bought by deleting one character,
which raises the obvious follow-up.
If hiding the price works,
why does half the food industry do the exact opposite?
There's a study on that, and it's a small one.
A single piece of field work
in one pizzeria grill in Brittany, in France,
published in 2009.
For a stretch of weeks,
every pizza on the list was priced at a round number.
Then the researchers changed one.
A single pizza, its price now ending in a nine,
while everything around it stayed round.
That pizza started getting chosen more often.
The gap between the two prices was one cent.
You couldn't buy anything with it.
You wouldn't bend down for it in a parking lot.
But a nine at the end of a price isn't information,
it's a signal.
Everyone in a Western country has been trained to read it.
It means deal.
It means every day.
It means don't think too hard about this one.
That single pizzeria is thin evidence on its own.
The pattern underneath it.
Research on menu prices has found the split
holds broadly across the trade.
Fine dining rounds to zero endings,
which read as quality.
Quick searches leans on nines, which read as value.
So, two rooms, opposite instincts.
In the New York dining room,
the goal was to make the money quiet down.
In the pizzeria, the goal was to make the price speak up.
Same trick, aimed in different directions,
depending on which feeling the room is selling.
Neither menu is designed to be read easily,
but both are designed around the same half second,
the one where you decide,
which is where the industry gets embarrassing.
For decades, the industry agreed on where your eyes go.
There's a diagram.
It has arrows.
Your gaze supposedly lands above the middle
of the right-hand page,
in what the trade calls the sweet spot.
So, that's where you put the dish you most want to sell.
This was taught in textbooks
and sold to restaurants as settled fact.
In 2012, one of the researchers from that Hyde Park lunch,
Sybil Yang, sat people down in front of a menu
wearing an eye tracker to check.
There was no sweet spot.
People read menus like books,
left to right and top to bottom,
and slowly, because they're hungry and paying attention.
She did find a sour spot, a patch people skipped,
which happened to hold a list of salads
and the block of information about the restaurant itself.
Later, eye tracking work has reported sweet spots
on some menus, so this isn't settled,
but the confident arrows never had much behind them.
And the lunch study is harder on itself
than the headlines about it were.
The report says plainly that the price format
didn't move total spending much
once you account for ordinary things,
like how many people are at the table
and how long they sit there.
The whole famous finding rests on about 200 lunches
in one dining room in one town,
and the authors are the first to say so,
which reorders everything.
On that list, typography sits at the bottom,
well beneath the size of the party
and the length of the meal.
The missing dollar sign is real.
It's also the smallest thing in the room,
and it's the only one anybody ever talks about.
That changes what a menu actually is,
not a price list with nice fonts on it.
It's the last surface standing
between a pleasant evening and a piece of arithmetic.
Restaurants are one of the businesses
where you do the math in front of the person
who cooked for you,
while you're still sitting in their room,
deciding whether to keep going.
Everything on that page is arranged
around softening that one moment,
my opinion, and you can take it or leave it.
That isn't a trick played on you.
It's a room trying to stay a room
instead of turning into a transaction,
and I think most of us would rather it did.
Nobody enjoys a bill arriving
in the middle of a good night.
Whether you call the softening hospitality
or manipulation comes down to a single question,
whether you'd have ordered the second glass anyway,
and the honest answer is that nobody knows,
not the restaurant and not you,
which is the part worth carrying out with you.
The menu is just the surface we happen to notice
because it's paper and it sits in your hands
and you can hold it up to the light.
Chips on a table aren't dollars.
Points aren't dollars.
A number that appears on your phone
after the ride is over is a number, not a payment.
So how many of the prices you'll look at tomorrow
have already had the symbol quietly taken off,
and would you still have said yes to them with it there?