The paradox of choice and missed opportunity

Watch new guests walk into your restaurant and stare at the menu. Do they scan quickly and nod or do they drift across the options, mouth dropping open?

In 2004, Barry Schwartz wrote Paradox of Choice, in which he proves that more options can actually reduce the quality of the customer experience (which was not yet a buzzword). This theory explains the growth of fast casual restaurants. The concepts are simple to understand, the menu is void of the clutter that QSR and casual dining brands have added over the years to keep up.

While choices are necessary to fight the veto, too much choice confuses guests and weakens their understanding of the concept. As Zac Painter, VP of Marketing at Fatz Cafe told F&RM, during the great recession the brand had added a Chinese chicken salad to its menu of home cooked southern classics. The item has since been removed from the menu.

Options like these create confusion for the guest. It’s why Chick Fil A and In-N-Out Burger continue to succeed. Customers know what they come in for, and the brand doesn’t make them search to hard for it.

choice, veto, menu
Four food items, three of which are hamburgers. How’s that for choice?

That’s not to say that every brand should restrict choice to less than ten items. But a key point here is that brands like these offer streamlined menus, and execute on every item. Can you even imagine the wait at In-N-Out if they added more items?

Look at the top growth brands and you’ll see that they all have simple menus in common. Chicken brands like Zaxby’s and Raising Cane’s keep the menu options tight and reap the benefit. Guests crave chicken, they go to a place that executes what they have on their mind.

When guests order from a busy menu they aren’t thinking very logically about making the optimal selection. That’s just not how we’re wired. Instead, in an environment scattered with choice, they simply try to meet the requirement of the task – choose something.

Being overwhelmed by choice can leave people feeling lonely and even depressed, according to Barry Schwartz. Not exactly the aim of hospitality. People are looking to choose but don’t know how to make the choice.

But this harried execution of selection leads to a state that Schwartz calls ‘missed opportunity.’ This happens when they realize they chose something they didn’t really want, or later find a selection they believe would have been more satisfying. This also creates a bad brand experience because they feel that they ‘ordered the wrong thing.’

Of course brands like The Cheesecake Factory deliver on a menu as thick as a phone book every day. There will always be exceptions to any rule. For whatever reason, that brand has driven loyalty by offering tons of choice – even on the dessert menu. This is because, like Chick Fil A and Raising Cane’s, they execute every time.

It is hard to make the wrong choice. But most restaurants are not The Cheesecake Factory. To simplify on execution, simplify the menu. As a brand, there shouldn’t be a wrong thing to be ordered. There shouldn’t be that Chinese chicken salad.

Author: Adam Pierno

Adam Pierno has a one-of-a-kind perspective on restaurant and CPGs. He investigates the connections between strategy, media, digital and business goals employing social media listening, analysis and traditional consumer research to find meaningful insights for brands thinking about their futures.