Posted by Mike Smith :: May 2, 2009 @ 6:14 am

In an effort to lure in the growing number of budget-conscious diners, many full-service chain restaurants have begun to offer menu items at historically low prices. USA Today reports that desperate restaurants are willing to try anything, including significant discounts, in the hopes of bringing back customers.

With lower prices, you’ll be able to either spend less money or keep your budget the same while eating out more. I prefer the former. The cited article also noted how prices in some chain restaurants were approaching those of fast food. While you may feel better getting a “real meal” for about the same amount of money, remember that chain restaurant food is often at least as unhealthy as fast food, and sometimes worse.

Low prices also mean that profit margins are reduced. Restaurants still stand to be better off as a result if higher volume can increase overall profit. Would you rather make a $5 profit on 100 people or a $7 profit on 50 people? Clearly the first option means a healthier bottom line. Menu items with lower prices can also be used as loss leaders to get customers in the door. Once there, they may purchase not only the low-priced items but also those with higher profit margins, such as alcohol.

Chains specifically mentioned in the article included Chili’s, T.G.I. Fridays, Outback Steakhouse, Texas Roadhouse, Cheesecake Factory, and Morton’s. Many offered meals for $10 or less. Other chains are likely to follow suit.

I don’t eat out very often, but lower prices are good even for people like me. To make the most of these latest promotions, stick to the featured items that offer the best deals and pass on everything else. The restaurants would prefer customers with worse spending habits, but in this economy, they’ll take any customers they can get.

Do price adjustments affect your dining habits?