Raising prices and adjusting portions at the same time is a delicate balance. You don't want to scare off customers, but you also don't want to go bankrupt. In this article you'll learn how to strategically plan and execute both adjustments without damaging your business.
First analyze the situation
Before you change anything, you need to know where you stand. Check these numbers:
- Current food cost per dish (should be under 35%)
- Average bill value per customer
- Number of customers per day/week
- Which dishes sell the most
💡 Example:
Your steak now costs €12 in ingredients and sells for €28 (excl. VAT: €25.69).
- Food cost: (€12 / €25.69) × 100 = 46.7%
- Problem: way too high (should be under 33%)
- You're probably serving 300g meat instead of 250g
Action needed: raise price and lower portion
Choose your strategy: phased or all at once
You have two options to implement both adjustments:
Option 1: Phased (recommended)
- Week 1: Adjust portions only (from 300g to 250g)
- Week 4: Raise prices (€28 to €32)
- Advantage: customers adapt gradually, less resistance
- Disadvantage: takes longer to reach healthy margins
Option 2: All at once
- Simultaneously: 250g portion for €32
- Advantage: immediate healthy margin
- Disadvantage: customers notice more, possible loss
⚠️ Important:
Never change more than 20% of your menu at once. Start with your 3 best-selling dishes.
Calculate the new numbers
Work out what your new food cost will be after both adjustments:
💡 Example calculation:
Steak adjustment from 300g/€28 to 250g/€32:
- Old situation: €12 ingredients / €25.69 = 46.7% food cost
- New portion: 250g = €10 ingredients
- New price: €32 excl. VAT = €29.36
- New food cost: €10 / €29.36 = 34.1%
Result: from loss-making to healthy
Communicate smartly to your customers
The way you present the change determines the reaction:
What you DON'T say:
- "Due to rising costs we're raising prices"
- "Portions are getting smaller"
- "Everything is getting more expensive"
What you DO say:
- "We're refining our portions for the perfect balance"
- "New menu with refreshed recipes"
- "We're investing in even better quality ingredients"
Monitor the reactions
Track these numbers in the first month after the change:
- Number of customers per day (expect 5-15% decline)
- Average bill value (should increase)
- Complaints about portion sizes
- Repeat customers vs. new customers
💡 Practical example:
Restaurant with 100 customers/day, €25 average bill:
- Before: 100 customers × €25 = €2,500/day
- After: 90 customers × €28 = €2,520/day
- Result: 10% fewer customers, but more revenue
Plus: much better margin due to lower food cost
Plan B: if things go wrong
Prepare for these scenarios:
Too many customers lost (>20% decline):
- Introduce temporary promotions (2+1 free, happy hour)
- Consider lowering prices slightly
- Keep the smaller portions
Many complaints about portion sizes:
- Train staff to explain: "refined portion, same taste"
- Offer extra sides for those who want more
- Focus on quality of presentation
Use tools for monitoring
Keeping track of all these numbers is crucial but time-consuming. A system like KitchenNmbrs helps you to:
- Automatically calculate your new food cost
- Update portion sizes in your recipes
- See the impact of price changes immediately
- Run different scenarios
How do you tackle price and portion adjustments? (step by step)
Analyze current food cost of your top dishes
Calculate exactly what your 5 best-selling dishes cost in ingredients. Divide this by your selling price excl. VAT and multiply by 100 for the percentage. Anything above 35% needs to be addressed.
Determine new portion size and price per dish
Work out what the ideal portion is for maximum 33% food cost. Also determine your new selling price. Test whether customers are willing to pay this price by looking at your competition.
Choose phased implementation
Start with portion adjustments in week 1, raise prices in week 4. Monitor your customer visits and revenue daily. Adjust if you lose more than 20% of customers in the first two weeks.
✨ Pro tip
Test your new portions for a week with your staff and regular customers first. Their honest feedback helps you perfect the presentation before you officially launch it.
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 many customers can I lose with price and portion adjustments?
A decline of 5-15% is normal and often acceptable if your revenue stays the same due to higher average bills. Above 20% becomes risky for your cash flow.
Should I raise prices first or reduce portions first?
Start by reducing portions. Customers notice this less than price increases. After 2-3 weeks you can adjust the prices. This prevents too much of a shock.
How do I explain smaller portions to customers?
Talk about 'refined portions' or 'perfect balance'. Focus on quality and presentation. Train your staff to explain that you're investing in better ingredients.
What if my food cost is still too high after adjustment?
Then your purchase prices are too high or your recipes are too expensive. Check if you can switch to different suppliers or ingredients. Sometimes you have to remove dishes from the menu entirely.
Can I implement both adjustments at the same time?
You can, but the risk of customer loss is greater. Only do this if your food cost is dramatically too high (above 40%) and you need to act quickly to stop losses.
📚 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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