A restaurant in Amsterdam lost 30% of their regulars after raising prices by 18% overnight. Strategic timing and spreading increases across multiple moments prevents sticker shock. This keeps guests returning while protecting your bottom line.
Why price increases often fail
Too many restaurant owners postpone the inevitable, then shock customers with massive 15-20% jumps. That's a recipe for empty tables. Guests feel ripped off and find somewhere else to eat.
⚠️ Watch out:
Guests accept price increases of 5-8% at a time. Anything above that feels like theft. So plan multiple smaller rounds instead.
The 3-step strategy for price increases
Split your price increase across 3 separate moments throughout the year. Each bump stays digestible while you still protect those crucial margins.
💡 Example:
Your supplier hiked prices by 18% this year. Break it down like this:
- March: +6% on main courses
- June: +6% on appetizers and desserts
- September: +6% on beverages
Total: 18% increase, but guests barely notice it
Timing of price adjustments
The when matters just as much as the how much. Pick moments where guests expect change:
- Start of season: March (spring), September (fall)
- After holiday periods: January, August
- With menu renewal: new menu, new prices
- With supplier increases: implement within 6 weeks
Skip busy periods like December or summer vacation. Guests notice price changes more during peak times.
Which dishes to raise first
Not every dish reacts the same way to price bumps. Start with the ones that won't cause pushback:
💡 Order of price increases:
- First round: specialties and signature dishes (guests expect premium pricing)
- Second round: main courses with meat/fish (most expensive ingredients)
- Third round: appetizers, pastas, salads
- Last: most popular dishes (most resistance)
Calculate margin protection
For each pricing round, double-check that your margins stay protected. Here's the formula:
New food cost % = (Old ingredient costs × cost increase) / (Old selling price × price increase) × 100
💡 Example calculation:
Steak was €32.00 with €9.50 ingredient costs (30% food cost). Supplier raises meat by 15%:
- New ingredient costs: €9.50 × 1.15 = €10.93
- With 6% price increase: €32.00 × 1.06 = €33.92
- New food cost: €10.93 / €31.12 (excl. VAT) = 35.1%
Result: margins get worse, but remain acceptable
I've seen restaurants lose EUR 200-400 monthly by not tracking this properly. They think they're protecting margins but actually watch them erode with each service.
Communication with guests
Don't announce price increases. Just implement them quietly. Fresh menus, zero fanfare. Most diners won't even spot small bumps.
- Print new menus without mentioning "new prices"
- Train staff not to bring up prices
- If guests ask: "We've refreshed our menu"
- Focus on quality and new dishes
⚠️ Watch out:
Never change prices on existing menus with a pen. That looks cheap and guests feel cheated.
Alternative strategies
Sometimes you can protect margins without touching prices:
- Reduce portions: 200g steak becomes 180g (10% cost savings)
- Cheaper sides: replace expensive vegetables with seasonal produce
- Adjust recipes: fewer expensive ingredients, same taste
- Menu composition: promote more profitable dishes more
These tactics buy you time, but you'll eventually need price increases if costs keep climbing.
How do you plan a price increase? (step by step)
Analyze your current margins
Calculate the food cost of your 10 best-selling dishes. Check which ones are above 35% and are priority for price increases. Make a list of dishes that suffer most from cost increases.
Plan 3 moments per year
Choose March, June, and September as fixed moments for price adjustments. Spread your total desired increase across these 3 rounds, maximum 6-8% per round. Note these dates in your calendar.
Start with least sensitive dishes
Begin with signature dishes and specialties, then main courses with meat/fish. Save popular and inexpensive dishes for last. Test guest reaction before moving forward.
✨ Pro tip
Test price increases on 3-4 signature dishes first, then wait 10 days to gauge guest reaction. If no complaints surface, roll out the next batch of increases.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
How much can I increase without losing customers?
Maximum 6-8% at a time, 3-4 times per year. Guests accept this as natural inflation. Anything above 10% at once feels like robbery and drives customers away.
Should I warn guests about price increases?
No, just do it quietly. New menus without announcement work fine. Most guests don't notice small increases. Only with major changes can you frame it as a "refreshed menu."
What if my competitor stays cheaper?
Focus on value, not price wars. Good quality justifies higher prices. Just make sure the gap doesn't exceed 20% - beyond that, guests start comparing seriously.
Can I charge different prices at different times?
Absolutely - happy hour pricing and lunch specials work well. Just ensure your break-even point is solid and never drop below your minimum viable price, even during promotions.
📚 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
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (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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