Menu psychology is the study of how the design and layout of a menu can influence customer choices and spending behavior. By strategically placing items, using descriptive language, and incorporating visual elements, restaurants can guide diners toward higher-priced or more profitable dishes. Key techniques include the use of anchoring, where a high-priced item makes other options seem more reasonable, and decoy pricing, which introduces a less attractive option to make another choice appear more appealing. Understanding these principles helps restaurants optimize their menus for better sales and customer satisfaction.