I don't think you are understanding this article correctly. The 'decoy item' would be a very high priced item that the restaurant does not expect to actually se

I don't think you are understanding this article correctly. The 'decoy item' would be a very high priced item that the restaurant does not expect to actually sell: '$96 Coq au Vin for Two. Reserve 24 hours in advance.' This is an extreme example, but what I'm talking about is more common. Think about chain restaurants like CPK, Macaroni Grill, PF Changs, etc. These restaurants just need to keep you seated long enough to sell you drinks. In order to do that without losing money on dishes, they need to funnel you into higher margin entrees. All other things being equal (i.e. the fixed costs of keeping the restaurant open), they want you eating pasta, not chicken. It's simple math...pasta costs pennies per serving in raw materials, can be stored for long periods of time, and is easy to prepare (you boil and simmer it, and it is easy to keep warm while you prepare other dishes). It is by far the highest margin food item on the menu. Salad would be close, but it has a short shelf life. Chicken and other meat dishes are more complicated because they have a short shelf life (you don't freeze these because it kills the flavor and texture), and they need to be cooked just right and served quickly or you risk serving it cold or drying it out under heat lamps (resulting in expensive do-overs). The $15 (or $20) chicken entree is the real decoy...the restaurant would love to serve everyone pasta because it is a much higher margin (all other fixed costs being the same). EDIT: I just googled "restaurant profit margins" and the second result gives the same example: http://articles.moneycentral.msn.com/SavingandDebt/ConsumerActionGuide/10ThingsYourRestaurantWontTellYou.aspx http://articles.moneycentral.msn.com/SavingandDebt/ConsumerA... Given the slim profit margin, many restaurants rely on savvy pricing to create the illusion of value. Putting a chicken dish on the menu for $21 will make a $15 pasta dish, where the restaurant is making a big profit, seem like a bargain, says Gregg Rapp, the owner of consulting firm MenuTechnologies.net. That's funny...good thing I'm not the only one who noticed that at restaurants!