Are you watching your profits shrink while ingredient costs climb higher each month? Many restaurant owners delay price increases because they fear losing customers, but meanwhile their profit disappears. You can gradually increase prices step by step without damaging your margin.
Why small price increases are necessary
Your suppliers are raising their prices. Energy's getting more expensive. Wages are rising. But your menu stays the same. The result: your margin slowly shrinks without you noticing.
💡 Example:
Your steak cost €8.50 in ingredients last year. Now €10.20. Selling price stayed €32.00.
- Last year: 28.5% food cost
- Now: 34.3% food cost
Difference: 5.8 percentage points less margin
At 100 steaks per month you lose an extra €170 in margin. That's €2,040 per year on just one dish.
The 3% rule for price increases
An increase of 3-5% goes unnoticed by most guests. Above 10% becomes noticeable and customers may stay away.
⚠️ Note:
Don't raise all prices at once by the same percentage. That's too noticeable. Vary between 2-6% per dish.
Which dishes to raise first
Start with your most popular dishes. They have the biggest impact on your total margin. Then your most expensive dishes - a small increase is less noticeable there.
- Popular dishes: Biggest impact on revenue
- Expensive dishes: €1 extra on €35 is less noticeable than on €12
- Unique dishes: Hard to compare with competitors
- Drinks: Often easiest to raise
Calculate your new selling price
To maintain your margin when ingredient costs rise, calculate the minimum new price:
New minimum price = New ingredient costs / (Desired food cost % / 100)
💡 Example calculation:
Pasta carbonara: ingredients rose from €5.10 to €5.85. Desired food cost: 30%
- New minimum price excl. VAT: €5.85 / 0.30 = €19.50
- Incl. 9% VAT: €19.50 × 1.09 = €21.26
- Old price was €18.50, new price becomes €21.50
Increase: €3.00 (16.2%)
If 16% seems too much, you can choose a smaller increase now and another one in 6 months. From analyzing actual purchasing data across different restaurant types, this staggered approach often works better than one large jump.
Communication with guests
Don't change your menu with great fanfare. Just print new menus and put them out. Most guests don't remember exact prices.
- No announcement: "Starting next week new prices"
- No apology: "Unfortunately we have to..."
- Just do it: New menus, normal service
💡 Example timing:
Raise prices on a quiet Monday or Tuesday. Not on busy days or during events.
- Inform staff: "New menus starting today"
- No major changes in layout or design
- Same dishes, same quality
Monitor the effect
Keep a close eye on how much you sell of the raised dishes in the first 2 weeks. A drop of 5-10% is normal and acceptable. More than 20% means the increase was too large.
Also calculate your new food cost to check if your margin is back on track.
How do you implement price increases? (step by step)
Analyze your current margins
Check the food cost of your 10 best-selling dishes. Which ones are above 35%? Those have priority for price increases.
Calculate new prices per dish
Use the formula: new ingredient costs divided by desired food cost percentage. Round to logical amounts (€21.26 becomes €21.50).
Plan the rollout in phases
Don't raise everything at once. Start with 5-7 dishes, wait 2 weeks, evaluate, and continue with the next batch.
Print new menus
Same layout, same dishes, only prices adjusted. Inform your staff but don't make a big deal about it to guests.
Monitor sales figures for 2 weeks
Keep track of how much you sell of raised dishes. A drop of up to 10% is acceptable. Also check if your food cost is back at desired levels.
✨ Pro tip
Implement increases on 3-4 dishes every 6 weeks rather than your entire menu at once. This gradual rollout keeps changes virtually invisible to regular customers while steadily protecting your margins.
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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?
An increase of 3-5% usually goes unnoticed. Above 10% becomes noticeable. Vary between 2-6% per dish and don't raise everything at once.
Should I warn my guests about price increases?
No, just put out new menus without announcement. Most guests don't remember exact prices and accept small increases as normal.
Which dishes should I raise first?
Start with your most popular dishes (biggest impact) and your most expensive dishes (increase is less noticeable). Avoid raising your cheapest options.
How do I calculate how much to increase to maintain my margin?
Divide your new ingredient costs by your desired food cost percentage. At €6 ingredients and 30% food cost: €6 / 0.30 = €20 excl. VAT.
📚 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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