Every restaurant owner faces this moment eventually - the dreaded price increase conversation. You can't absorb rising costs forever, but losing loyal customers feels even worse. The solution lies in transparent communication that highlights value rather than dwelling on your expenses.
Timing is everything
Don't announce price increases during your busiest weeks or right before major holidays. Pick a slower period when guests can mentally adjust to the changes. Give them at least two weeks to process the news.
? Example timing:
Bad: price increase on February 14 (Valentine's Day)
Good: price increase in early March (quiet period)
Announcement: mid-February, new prices: March 1
Focus on value, not costs
Skip the sob story about inflation and supplier increases. Instead, tell guests exactly what improvements they're getting for their money. Better ingredients, enhanced service, or kitchen upgrades make compelling cases.
- "We've partnered with local organic farms for our produce"
- "Our executive chef has elevated the menu with artisanal ingredients"
- "We've upgraded our kitchen equipment for superior food quality"
Communicate through multiple channels
A single announcement won't reach everyone. Use various touchpoints so no guest gets blindsided by new prices on their bill.
? Example communication plan:
- Week 1: Social media post and website update
- Week 2: Tell regular guests in person
- Week 3: Prepare new menus
- Week 4: Implement new prices
⚠️ Heads up:
Never surprise your guests with new prices at the table. That feels like deception and leads to negative reviews.
Personal approach for regular guests
Your regulars deserve a face-to-face conversation. They've invested in your restaurant and typically understand that quality costs money - they'll appreciate your transparency.
Try something like: "We're adjusting our prices to maintain the quality standards you've come to expect. You've been part of our family for years and know we never compromise on ingredients or service."
Offer alternatives
Not every guest can stretch their budget. Create options that keep price-conscious diners at your tables without sacrificing your margins.
- Lunch menu with accessible pricing
- Daily specials as budget-friendly options
- Happy hour with promotional prices
- Half-portion sizes at reduced cost
? Example alternative menu:
Main course à la carte: €28.00
Daily menu (appetizer + main course): €24.50
This way you offer choice without excluding anyone
Calculate your increase carefully
Avoid blanket percentage increases across your menu. Analyze your food cost for each dish and adjust where margins actually need help. This is a pattern we see repeatedly in restaurant financials - owners who calculate dish by dish outperform those who guess.
Formula: New price = Ingredient costs / (desired food cost % / 100) × 1.09 (for VAT)
? Example calculation:
Steak ingredient costs: €11.50 (was €10.00)
Desired food cost: 30%
New price excl. VAT: €11.50 / 0.30 = €38.33
New menu price: €38.33 × 1.09 = €41.78
Test the reaction
Start small with price adjustments on your most popular dishes. Gauge customer response before rolling out changes across your entire menu.
Track your numbers for the first 30 days. If you're serving 10% fewer covers but generating 15% higher revenue per guest, you've made the right move.
Related articles
How do you communicate a price increase? (step by step)
Plan your timing
Choose a quiet period, at least 2 weeks after your announcement. Avoid busy periods and holidays. Give guests time to get used to the idea.
Calculate your new prices
Check per dish if your food cost still makes sense. Only increase where necessary, not by the same percentage everywhere. Use the formula: ingredient costs / desired food cost × 1.09.
Communicate through multiple channels
Use social media, website, personal conversations and new menus. Tell guests what they get for their money, not why everything is getting more expensive.
✨ Pro tip
Test your price increases on just 3-4 high-volume dishes for the first two weeks. If guest counts stay stable, you can confidently roll out changes to your full menu.
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Frequently asked questions
What percentage can I raise my prices without losing customers?
Should I raise prices on my signature dishes first?
How do I handle complaints about the price increase?
What if my competitors haven't raised their prices yet?
Should I grandfather in regular customers at old prices?
How far in advance should I announce price changes?
What's the best way to update printed menus during the transition?
Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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