Most restaurant owners think they can delay price increases until next season's menu. That's a costly myth. Your beef supplier bumps prices 15% in March, but you wait until June to adjust - bleeding €1,500+ on steaks alone.
Why do restaurants always fall behind?
Restaurant owners typically adjust prices after feeling financial pain. By then? You've hemorrhaged money for months without knowing it.
💡 Example:
You sell a steak for €32.00. Ingredients cost €9.60 (30% food cost).
Your meat supplier raises their price by 15%. New ingredient costs: €11.04.
- Old food cost: 30%
- New food cost: 35.5%
- Loss per portion: €1.44
At 20 steaks per week you lose €1,498 per year.
Warning signs you're already behind
These red flags mean your prices are lagging:
- Food cost creeps above 35% - Popular dishes drain profits
- Packed house, empty pockets - Revenue climbs but margins vanish
- Supplier price alerts - Those increases hit your bottom line immediately
- Kitchen staff grumble about portions - "We're skimping" usually means "prices are too low"
⚠️ Note:
Suppliers often raise their prices in January and September. Plan your own price adjustments for February and October.
The quarterly review system
Smart restaurants stick to this schedule: review cost prices every 90 days. More frequent checks waste time, less frequent ones cost money.
Zero in on your top 10 sellers. These dishes generate 70-80% of revenue. From years of working in professional kitchens, I've seen restaurants ignore their bread-and-butter items while obsessing over specialty dishes that barely move.
💡 Example planning:
- January: Audit costs, prep spring menu
- April: Cost check, assess seasonal ingredients
- July: Review numbers, plan fall offerings
- October: Final cost review, winter menu prep
Calculating the perfect timing
This formula tells you exactly when to bump prices:
New selling price = Updated ingredient costs ÷ Target food cost %
💡 Calculation:
Pasta carbonara - ingredients jumped from €4.80 to €5.50
Target food cost: 28%
- New minimum price: €5.50 ÷ 0.28 = €19.64 excl. VAT
- With 9% VAT: €19.64 × 1.09 = €21.41
- Rounded: €21.50
Was €19.50, becomes €21.50 - increase of €2.00
Guest communication strategy
Price hikes sting, but customers accept them with proper explanation:
- Stay transparent: "Rising ingredient costs require menu adjustments"
- Add value: Fresh dishes, premium quality, generous portions
- Give notice: Post signs 14 days ahead
- Prep your team: They'll field questions and handle pushback
⚠️ Note:
Don't raise everything at once. Spread it over 2-3 months. Guests barely notice a price increase of €1-2 per dish.
Digital tracking solutions
Excel spreadsheets for cost tracking? Recipe for errors and wasted hours. Systems like KitchenNmbrs send automatic alerts when food costs spike due to supplier increases.
You'll spot instantly:
- Which dishes are bleeding money
- Minimum pricing thresholds
- Overall profit impact
How do you make sure you increase prices on time? (step by step)
Create a quarterly schedule
Put it in your calendar: check cost prices every 3 months. Focus on your 10 best-selling dishes. These make up the largest part of your revenue.
Calculate new cost prices
Add up all ingredient costs per dish. Use current purchase prices, not what you paid 6 months ago. Don't forget garnish, sauces and oil.
Check your food cost percentage
Divide ingredient costs by selling price excl. VAT. Above 35%? Then you're losing money. Calculate new selling price: ingredient costs ÷ desired food cost%.
Plan the price increase
Announce 2 weeks in advance. Don't raise everything at once, but spread it over 2-3 months. Train your staff to answer guest questions.
✨ Pro tip
Set calendar reminders for the 15th of every third month to review your top 10 dishes. This 90-day cycle catches cost creep before it kills your margins.
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
What if my competitor doesn't increase prices?
Focus on your numbers, not theirs. If competitors ignore rising costs, they're operating at a loss. That strategy won't last long, and you shouldn't copy it.
How much can I increase without losing customers?
Cap increases at €2-3 per dish at once. Bigger jumps shock customers and hurt sales. For major adjustments, spread the increases across several months.
Should I wait for my seasonal menu update to raise prices?
Absolutely not - that's months of lost profit. Adjust prices immediately when costs rise, then incorporate the changes into your next printed menu. Waiting costs you real money every single day.
📚 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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