How to Lure the Spendy and the Thrifty? Bring On the ‘Barbell.’, tell me about this news in (https://www.nytimes.com/2026/09/12/business/barbell-pricing-restaurants.html)

The New York Times article “How to Lure the Spendy and the Thrifty? Bring On the ‘Barbell.’” covers how restaurants and dining chains are reshaping their menus and pricing strategies to navigate a deeply divided consumer economy.1. What Is the “Barbell” Strategy?In business and retail, a barbell strategy focuses offerings at two opposite extremesjust like weights on either end of a barbellwhile largely ignoring or shrinking the middle:

• One end (The Thrifty): Deep discounts, aggressive value meals, and low-cost entry points designed to protect customer foot traffic.
• The other end (The Spendy): Premium, indulgent, high-margin items and add-ons designed for consumers who are willing to splurge.

2. Why Restaurants Are Adopting ItThe trend reflects a bifurcated, “K-shaped” consumer landscape shaped by cumulative inflation:

• Lower- and middle-income diners have cut back on eating out after years of steep price hikes across fast food and casual dining. They now scrutinize receipts and only visit when deals or coupons are available.
• Higher-income diners, by contrast, remain relatively insulated from price increases and continue to spend freely on quality, convenience, and luxury dining experiences.

Standard, mid-priced menu items risk pleasing neither group: they feel too expensive for budget-conscious guests and not special enough for those looking to treat themselves.3. How the Strategy Looks on Menus

• For the value-conscious: Chains rely on limited-time promotions, $5 bundled meals, lunch specials, and app-exclusive coupons. While margins on these items are slim (sometimes acting as loss leaders), they get customers through the door or drive-thru.
• For the big spenders: Operators introduce upgraded proteins, artisanal toppings, specialty craft cocktails, and high-end limited releases. These carry fat profit margins that help offset the thin margins of the discount items.

4. The Bottom LineThe “barbell” approach allows restaurants to protect overall visit frequency without sacrificing profitability. Rather than aiming for a single average price point that alienates cash-strapped patrons or leaves money on the table with affluent ones, restaurants are increasingly operating as two businesses under one roof.