The mistake starts with a high price point that is dictated by a high end setting, such as the Las Vegas Strip. These steakhouses have to charge $80 to $100 for a delicious steak that would cost $40 or $50 off the strip. The best steakhouses do this unapologetically and their steaks are amazing. Most customers understand the situation.
Where some restaurants go wrong is believing they have to do something fancy to the steak in order to justify the high price. And in trying to do too much, the chef ruins the steak.
Most of us are accustomed to the familiar pricing formula of tallying the various costs of a product, then marking it up for profit. That isn’t how it works at the high end. When a corporation commits to building a resort casino, everyone knows that property will have high end restaurants in all the usual cuisines: Steak, Italian, Seafood, Asian, etc. Even before the architects start the blueprints, we know there will be a steakhouse selling $90 steaks. We may not know the eventual name or operator of the steakhouse, but we know a $90 steak will be on the menu.
We are ok with this high end formula. We’re ok paying $90 for a $40 steak in a delightful setting. Once you have a great piece of beef and a proven preparation, you can’t improve it. So, stop trying.
