Ithaca, NY, A study from Cornell University has found a new wrinkle in one of the restaurant industry's longest running debates-how to present menu prices to encourage the best check averages. The new study, from Cornell's Center for Hospitality Research suggests that guests spend more, on average, when menu prices are presented without dollar signs or the use of the word dollar. The restaurant industry research study, "$ or Dollars: Effects of Menu-price Formats on Restaurant Checks," by Sybil S. Yang, Sheryl E. Kimes, and Mauro M. Sessarego, is available at no charge from the center, .

"Our findings were a surprise," said Sybil Yang, who is a doctoral candidate at the Cornell School of Hotel Administration. "The theory predicts that the numeral-only approach would show lower spending, instead of higher spending." The study was conducted during lunch at St. Andrew's, the restaurant at the Culinary Institute of America, in Hyde Park, New York. The restaurant is operated by students under the direction of Sessarego, who is an associate professor at the Culinary Institute.

"One theory to examine further is whether references to dollars, in words or symbol, reminds people of the 'pain of paying,'" said Kimes, who is Singapore Tourism Board Distinguished Professor of Asian Hospitality Management at the Cornell School of Hotel Administration. The study compared sales for menus with three price formats: a dollars and cents numerical format with a dollar sign ($00.00), a numerical format without a dollar sign (00.), and written-out prices (zero dollars). The researchers caution that their findings may apply only to lunch at this particular restaurant, but it seems clear that menu-price formats do influence customers' spending, both in terms of total check and average check.

The restaurant industry research report concludes: "As much as we might like to believe that we can earn a quick buck by changing the type and presentation of our menus, it is clear that operational factors have a much larger impact on purchase behavior than price typography does. Controlling for other factors, however, we saw a significant spending difference for menus that presented prices as numerals only."

Thanks to the support of the Center for Hospitality Research partners listed below, all publications posted on the center's website are available free of charge, at .

About the Center for Hospitality Research

The purpose of the Center for Hospitality Research is to enable and conduct research of significance to the global hospitality and related service industries. CHR also works to improve the connections between academe and industry, continuing the School of Hotel Administration's long-standing tradition of service to the hospitality industry. Founded in 1992, CHR remains the industry's foremost creator and distributor of timely research, all of which is posted at no charge for all to use. In addition to its industry advisory board, CHR convenes several industry roundtables each year for the purpose of identifying new issues affecting the hospitality industry.

Center Members: Accenture • Access Point Financial, Inc. • Barclaycard US • Cvent • Davis & Gilbert LLP • Deloitte & Touche USA LLP • DerbySoft • Four Seasons Hotels and Resorts • Fox Rothschild LLP • Hilton Worldwide • Host Hotels & Resorts • Hyatt Hotels Corporation • IDeaS Revenue Solutions • InterContinental Hotels Group • Jumeirah Group • Marriott International • NTT DATA • Preferred Hotels & Resorts • priceline.com • PwC • The Rainmaker Group • RateGain • ReviewPro • Revinate • Sabre Hospitality Solutions • STR • Taj Hotels Resorts and Palaces • Tata Consultancy Services • Wipro EcoEnergy • Wyndham Hotel Group

Glenn Withiam
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CHR