Pricing · 14 min
What should you charge?
Cost tells you the lowest price you can live with. Customers tell you the highest. Everything in between is a choice, and some businesses make it again every day.
Ticket 01 · Warm-upTable 1
Warm-up: one more guest tonight
Words to know
Sources and every number (4 sources)
Sources
- Chipotle Mexican Grill annual report (Form 10-K), fiscal 2025 · Chipotle Mexican Grill, Inc., filed with the U.S. Securities and Exchange Commission, 2025
- Marriott International, Inc. Form 10-K for the fiscal year ended December 31, 2025 · Marriott International, Inc. (filed with the U.S. SEC), 2025
- McDonald's Corporation annual report (Form 10-K), fiscal 2025 · McDonald's Corporation, filed with the U.S. Securities and Exchange Commission, 2025
- Southwest Airlines Co. Form 10-K for the fiscal year ended December 31, 2025 · Southwest Airlines Co. (filed with the U.S. SEC), 2025
Every number
- $120
(example number: Simplified example: what a last-minute guest pays for a room that would sit empty.) · Simplified example: what a last-minute guest pays for a room that would sit empty. - $30
(example number: Simplified example: cleaning, towels and the card fee for one occupied room, as in the lab later on.) · Simplified example: cleaning, towels and the card fee for one occupied room, as in the lab later on. - 75%
(example number: Worked out from the example: the price minus the per-room costs, divided by the price.) · Worked out from the example: the price minus the per-room costs, divided by the price. - 2.1%
sec.gov ·2025 · Chipotle's menu price increase, fiscal 2025, from its annual report's results table. - −2.9%
sec.gov ·2025 · Change in transactions at restaurants open at least thirteen months, fiscal 2025. - 2.9%
sec.gov ·2025 · How much transactions fell at restaurants open at least thirteen months, fiscal 2025. - 1.2%
sec.gov ·2025 · Increase in the average check at the same restaurants, fiscal 2025. - 1.7%
sec.gov ·2025 · How much comparable restaurant sales fell, fiscal 2025. - 2.9%
sec.gov ·2025 · Chipotle's menu price increase, fiscal 2024, from the fiscal 2025 annual report's results table. - 5.3%
sec.gov ·2025 · Increase in transactions at comparable restaurants, fiscal 2024. - $2.40
(example number: Simplified example: tortilla, eggs, potatoes, cheese, salsa and the wrapper for one burrito.) · Simplified example: tortilla, eggs, potatoes, cheese, salsa and the wrapper for one burrito. - 30%
(example number: Simplified example: a food-cost target, the way the Restaurant track's first lesson prices a dish.) · Simplified example: a food-cost target, the way the Restaurant track's first lesson prices a dish. - $8
(example number: Worked out from the example: the ingredient cost divided by the food-cost target.) · Worked out from the example: the ingredient cost divided by the food-cost target. - $7.50
(example number: Simplified example: the cheapest breakfast burrito at cafés nearby.) · Simplified example: the cheapest breakfast burrito at cafés nearby. - $10
(example number: Simplified example: the priciest breakfast burrito at cafés nearby.) · Simplified example: the priciest breakfast burrito at cafés nearby. - $8.75
(example number: Simplified example: the price the owner picks.) · Simplified example: the price the owner picks. - 27.4%
(example number: Worked out from the example cost and price.) · Worked out from the example cost and price. - $190.33
sec.gov ·2025 · Average daily rate, comparable systemwide hotels in the US and Canada, fiscal 2025. - 69.5%
sec.gov ·2025 · Occupancy, comparable systemwide hotels in the US and Canada, fiscal 2025. - $132.35
sec.gov ·2025 · Revenue per available room, comparable systemwide hotels in the US and Canada, fiscal 2025. - $132.28
sec.gov ·2025 · Worked out from the annual report: the average daily rate times occupancy. The report's own figure is a few cents higher because of rounding. - $190
(example number: Simplified example: about what Marriott's US and Canadian hotels averaged a night in fiscal 2025.) · Simplified example: about what Marriott's US and Canadian hotels averaged a night in fiscal 2025. - $160
(example number: Simplified example: a lower weeknight price for the lab's quick try.) · Simplified example: a lower weeknight price for the lab's quick try. - $210
(example number: Simplified example: a higher weekend price for the lab's quick try.) · Simplified example: a higher weekend price for the lab's quick try. - $130
(example number: Simplified example: a price low enough to fill nearly every room in the lab.) · Simplified example: a price low enough to fill nearly every room in the lab. - $15
(example number: Simplified example: one week of drop-in classes at a small yoga studio: the lowest price tried.) · Simplified example: one week of drop-in classes at a small yoga studio: the lowest price tried. - $20
(example number: Simplified example: one week of drop-in classes at a small yoga studio: the middle price tried.) · Simplified example: one week of drop-in classes at a small yoga studio: the middle price tried. - $25
(example number: Simplified example: one week of drop-in classes at a small yoga studio: the highest price tried.) · Simplified example: one week of drop-in classes at a small yoga studio: the highest price tried. - 120 visits
(example number: Simplified example: one week of drop-in classes at a small yoga studio: visits at the lowest price.) · Simplified example: one week of drop-in classes at a small yoga studio: visits at the lowest price. - 100 visits
(example number: Simplified example: one week of drop-in classes at a small yoga studio: visits at the middle price.) · Simplified example: one week of drop-in classes at a small yoga studio: visits at the middle price. - 70 visits
(example number: Simplified example: one week of drop-in classes at a small yoga studio: visits at the highest price.) · Simplified example: one week of drop-in classes at a small yoga studio: visits at the highest price. - $3
(example number: Simplified example: towels, cleaning and the card fee for one visit.) · Simplified example: towels, cleaning and the card fee for one visit. - $1,440
(example number: Worked out from the example: the lowest price minus the cost per visit, times the visits.) · Worked out from the example: the lowest price minus the cost per visit, times the visits. - $1,700
(example number: Worked out from the example: the middle price minus the cost per visit, times the visits.) · Worked out from the example: the middle price minus the cost per visit, times the visits. - $1,540
(example number: Worked out from the example: the highest price minus the cost per visit, times the visits.) · Worked out from the example: the highest price minus the cost per visit, times the visits. - $12
(example number: Worked out from the example: what each visit leaves at the lowest price.) · Worked out from the example: what each visit leaves at the lowest price. - $17
(example number: Worked out from the example: what each visit leaves at the middle price.) · Worked out from the example: what each visit leaves at the middle price. - $22
(example number: Worked out from the example: what each visit leaves at the highest price.) · Worked out from the example: what each visit leaves at the highest price.