Raising prices is necessary to protect your margins, but you don't want to lose customers. The secret lies in strategic timing and spreading price increases across multiple moments. This way you avoid sticker shock and keep your guests coming back.
Why price increases often fail
Many restaurant owners wait too long and then suddenly raise all prices by 15-20%. That feels like a blow to guests. They look for another place and don't come back.
⚠️ 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
Spread your price increase across 3 moments in the year. This way each increase stays acceptable and you still protect your margins.
💡 Example:
Your supplier raised their prices by 18% this year. Spread this across 3 rounds:
- 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 is just as important as the how much. Choose moments when 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
Avoid busy periods like December or summer vacation. Guests are more sensitive to price changes then.
Which dishes to raise first
Not all dishes are equally sensitive to price changes. Start with the least sensitive ones:
💡 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 price round, calculate whether your margins stay protected. 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
Communication with guests
Don't tell guests you're raising prices. Just do it. New menus, no announcement. Most guests don't even notice small increases.
- 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 raising 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 ultimately you'll need to raise prices if costs increase structurally.
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
Never raise all prices at once. Start with 3-4 dishes and see how guests react. If there are no complaints, continue with the next batch 2 weeks later.
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 theft and leads to customer loss.
Should I warn guests about price increases?
No, just do it. New menus without announcement. Most guests don't notice small increases. Only with major changes (>15%) can you communicate it subtly as a "refreshed menu."
What if my competitor stays cheaper?
Focus on value, not price. If your quality is good, guests pay more. Just check that the difference doesn't get too big - above 20% difference guests start comparing.
Can I charge different prices at different times?
Yes, happy hour prices or lunch specials are fine. Just make sure your break-even point is correct. Calculate your minimum price and never go below it, even with promotions.
How often should I check my prices?
Every 3 months. Check your food cost per dish and see if suppliers have raised their prices. Plan price adjustments 6-8 weeks in advance.
📚 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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