Omnès : Principles
The Omnès principles are initially a technique to check the consistency of your offer, i.e. the prices of your card.
If the multiplier method is used too much it can lead to an unbalanced price distribution. There are several checks that can be carried out using the Omnès principles. But you may find in the presentation of each principle examples of offers that are real commercial successes and yet do not respect the Omnès principles.
1- The opening of the range
"Within a range of products (starters, main courses, meats, desserts...), the ratio between the highest price and the lowest price must not exceed 2.5 or 3. This rule is applicable when the range is long, i.e. if it is more than nine dishes. In effect, the aim is to offer a price range that corresponds to the target clientele. If the price range is too wide, customers will have difficulty positioning themselves in relation to the restaurant's average basket.“
Generally, this principle focuses on the customer experience and on the price level of the restaurant. Today, the atmosphere, the staff, the ability of the establishment to adapt to the customer's request are of paramount importance. It should not be forgotten that it is the customer who decides on the budget he wants to spend. For example, a formula that has been successful to some extent is the following:
One price for the whole range
For example 5,9 € for all desserts. The difference in price between the dishes must be perceived by the customer as a difference in service. This is why the opening range of desserts generally varies between 0 and 2.
Omnès' 2nd principle: price dispersion
The second principle is that "Within the same range, the middle band must include a number of references at least equal to the total number of references proposed in the low and high bands. This principle is intended to give the customer a homogenous image of the prices charged by the restaurant.
Many restaurants are very successful without respecting this second principle, the trend being to offer a wider choice in the low range which, on its own, can sometimes include more dishes than the middle and high ranges combined.
Indeed, this practice takes into account a more price-sensitive demand, but allows the customer to indulge by choosing more expensive dishes that will really differentiate themselves by the quality of the products worked, the presentation or the service.
10-3-3 distributions, i.e. 10 dishes at the beginning of the range, 3 in the middle of the range, 3 at the top of the range, are very frequent today.
3rd principle of Omnès: the promotion of products
"The emphasis on certain products (chef's dishes, suggestions, daily menu...) must be centred on dishes that are in the middle of the range."
Highlighting your dishes of the day is therefore a very good way to innovate, to offer the customer new product and price experiences. These dishes of the day also make it possible to test new proposals. For example, your offer could be different depending on the time of day, lunch, dinner, the week or the weekend.
For example:
A restaurant owner is preparing a new menu of dishes (meat, fish, etc.). He draws up the technical data sheet for each recipe and defines the different ratios:
- A material cost of less than 3 €: ratio (coefficient) 3.5;
- Or a material cost between 3 and 5 €: ratio 3;
- Or a material cost of more than 5 €: ratio 2.5.
1. Determining sales prices.
|
Dishes main |
Cost subject | Coefficient |
Awards INCL. VAT |
| Dish 1 | 1,8 | 3,5 | 7,5 |
| Dish 2 | 2,1 | 3,5 | 8,8 |
| Dish 3 | 2,9 | 3,5 | 12,1 |
| Dish 4 | 3,4 | 3 | 12,2 |
| Dish 5 | 3,9 | 3 | 14 |
| Dish 6 | 4,7 | 3 | 16,9 |
| Dish 7 | 5,8 | 2,5 | 17,3 |
| Dish 8 | 6,2 | 2,5 | 18,5 |
2. Verification of the Omnes Principles
Range: 18.5 ÷ 7.5 = 2.47 in accordance with the principle
Dispersion:
range of tranches : (18.5-7.5) ÷ 3 = 3.67 €;
- A slice 1 from 7.5 to 11.17: 2 courses;
- Or a slice 2 from 11.17 to 14.84: 3 courses;
- Or a slice 3 from 14.84 to 18.5: 3 courses.
We note that dish 6 should be moved to slice 2 by reducing its material cost or coefficient. Indeed, this example shows that the final price allocation depends on the distribution of material costs and that the multiplying coefficient method and the Onmès principles are complementary.
The target cost method
In general, the multiplier method is criticized in the same way as methods that use costs determined by marketing experts. That is to say, from the price acceptable to the customer, which will have been determined in advance, either by comparison with the prices of the competition or by a survey.
Indeed, starting from prices does not exclude checking economic prosperity of the decision. But the target cost method initially consists in designing the product in such a way that the production costs are compatible with the price the customer will accept to pay.
Example: A restaurant owner sets the price of the dish of the day at 11 € (compared to the competition, its positioning...). His material cost objective is 28%. He must therefore calculate the target cost with the following formula: 11 x 28% = 3.52 € . It is therefore the restaurant owner who must choose the products and design the recipe so that the material cost does not exceed the target cost, i.e. 3.52€.
Photo credit : Photo food created by kstudio - en.freepik.com
