Monday Memo

A Byte of Knowledge

Most people close the sale and move on.

But the galaxy brain marketers?

They start planting seeds for the NEXT promo before the current one even finishes.

We call this "slow-burn seduction"...

And it's ridiculously effective.

Instead of hitting them with pitch after pitch...

You drop little hints about what's coming next.

A teaser about your fall collection while they're buying summer products...

A subtle mention of your advanced program as they sign up for the beginner course...

These breadcrumbs create something powerful:

Anticipation.

And here's the thing...

When customers are anticipating what's next from you...

They're already mentally committed to YOU - not your competitors.

🚀 Discover the 27 ‘Plug-and-Play’ AI Prompts Every Marketer Needs 

Something to Ponder

We Asked – AI Answered

Our Question: 

"How do buffet restaurants calculate their price points when customer consumption varies so dramatically?"

AI's Answer:

Buffet restaurants have one of the trickiest pricing challenges in the food industry. Some customers pile their plates high, going back for multiple servings, while others eat very little—yet the restaurant must remain profitable. How do they do it?

1. The Core Pricing Formula: Covering Costs + Profit Margins

Buffet pricing is primarily based on expected average consumption per customer rather than individual extremes. Here’s what goes into their calculations:

Food Cost per Guest: Typically 30-40% of the buffet price. If a buffet charges $20 per person, they expect to spend around $6-$8 on food per diner on average.

Labor Costs: Buffets reduce labor costs by minimizing waitstaff, relying mostly on kitchen and cleanup crews. Labor can range from 20-30% of revenue.

Rent & Overhead: Location-dependent, but often 10-15% of revenue.

Profit Margins: After all expenses, successful buffets aim for a 10-15% profit margin.

Case Study: The Golden Corral Pricing Model

Golden Corral, a leading buffet chain, prices meals at around $15 per adult because their data shows the average person consumes only $7-$8 worth of food, despite some customers eating far more.

2. How Buffets Manage Heavy Eaters vs. Light Eaters

Since some customers eat well below the cost of their meal while others consume far more, buffets rely on statistical averaging and psychological tactics to balance the scales.

The "Insurance" Model: Overeaters vs. Under-Eaters

A small percentage of customers (e.g., 10-15%) eat an extreme amount, consuming food far beyond the cost of their meal.

A large percentage of customers eat below the restaurant’s food cost threshold—sometimes significantly so.

Example: If one person eats $30 worth of food and another eats only $5 worth, their combined spend ($20 each) still keeps the buffet profitable.

3. The Science of Food Placement & Portion Control

Buffets use behavioral economics and plate psychology to influence what and how much people eat.

Plate Size & Design (Brian Wansink's Studies)

Smaller plates reduce total food consumption by 20-30%, as found by Cornell University researcher Brian Wansink in his book Mindless Eating.

Larger serving utensils make people take more, but they waste more too—helping the restaurant control actual consumption.

Strategic Food Placement (The “Expensive at the End” Trick)

Cheap, filling items (bread, pasta, rice, potatoes) are placed first, leading customers to fill their plates before they reach more expensive proteins.

Expensive items (steak, shrimp) are placed toward the back of the buffet or in limited serving trays, making them less accessible.

Time to Table & “Satiation Delays”

Buffets intentionally slow down high-cost food replenishment (like crab legs at Chinese buffets) to regulate portions.

Salty and high-carb foods increase thirst, leading guests to fill up on cheap beverages instead of food.

4. The Psychological Pricing Strategy

Buffets carefully set prices using anchoring and perceived value strategies:

Odd Pricing Effect: A price of $19.99 feels much cheaper than $20 to the average customer.

Weekday vs. Weekend Pricing: Higher weekend pricing offsets the higher consumption of diners who treat buffets as an "event."

Senior & Child Discounts: These customer segments eat significantly less, increasing profit margins.

The "All You Can Eat" Perception Trap

People feel they’re getting a bargain even if they don’t eat much, increasing their willingness to pay.

Loss aversion kicks in—customers try to eat more to "get their money’s worth," but they reach fullness faster than expected.

Thanks for reading the Monday Memo.

Until next time!

The AI Marketers

P.S. Help shape the future of this newsletter – take a short 2-minute survey so we can deliver even better AI marketing insights, prompts, and tools.

[Take Survey Here]