Price increases are necessary to stay profitable, but your team may resist them. They fear that higher prices will lead to fewer guests or that you'll no longer be competitive. Here's how to address this resistance while protecting your margins.
Why teams resist price increases
Your team sees guest reactions every day. They fear that higher prices lead to:
- Fewer reservations
- Negative reviews
- Complaints to staff
- Loss of regular customers
These concerns are understandable, but often unfounded. Research shows that guests are less price-sensitive than hospitality owners think.
Option 1: Let the numbers speak
Share transparently why a price increase is necessary. Show concrete figures:
💡 Example:
"Our supplier raised beef prices by 18% this year. Without adjustment, we lose €2.40 per steak."
- 50 steaks per week = €120 loss
- Per year = €6,240 less profit
- That's 1 month's salary for an employee
Team understands: no price increase = fewer jobs
Option 2: Phased increase
Instead of one big jump, increase in small steps:
- Month 1: +€1.00
- Month 3: +€1.00
- Month 6: +€1.00
Guests adjust gradually. Your team sees that there's no exodus.
Option 3: Add value with the increase
Don't just raise the price, improve the experience:
💡 Example:
Main course from €24 to €27, but:
- Free amuse-bouche
- Upgraded side dish
- Better presentation
Guest experiences more value, team is proud of the product
Option 4: Selective increases
Don't raise everything at once. Focus on:
- Popular dishes: Guests order them anyway
- Unique items: Hard to compare with competitors
- Premium options: Customers expect higher prices
Keep budget-friendly options available for price-sensitive guests.
Option 5: Involve your team in the decision
Ask your team: "Which 3 dishes can we raise prices on without you feeling bad about it?"
Often they'll choose the same items you would. Now it feels like their decision. Something most kitchen managers discover too late is that staff resistance drops dramatically when they participate in the pricing process.
⚠️ Watch out:
Delay makes the problem bigger. Every month without adjustment costs you more money. Don't wait until you're forced to increase drastically.
Option 6: Check competition together
Visit 3 comparable establishments in your area with your team. Look at their prices and quality.
Often they'll discover that your prices are still competitive after the increase.
Option 7: Alternative cost savings
If the team really objects, look for other solutions together:
💡 Example alternatives:
- Lower food cost through smarter purchasing
- Optimize portion sizes
- Reduce waste
- Lower energy costs
But: this is often temporary. Inflation eventually requires price adjustment
Having the conversation
Timing matters. Don't discuss this during busy service, but in a calm moment. Explain:
- Why it's necessary (figures)
- What happens if you don't (less profit = risk to jobs)
- How you'll implement it (phased, with added value)
Ask for their input and concerns. Take those seriously.
How do you address team resistance to price increases?
Calculate the necessity
Show concrete figures: how much costs have risen, what this means per dish and annually. Make it tangible with examples like 'this costs us X monthly salaries'.
Choose your approach
Decide between phased increase, adding value, or selective adjustment. Involve your team in this choice so they feel ownership of the solution.
Have the conversation
Discuss it in a calm moment, not during busy service. Explain why it's necessary, what the alternatives are, and ask for their input and concerns.
✨ Pro tip
Test price increases on your 2 most profitable appetizers first for 30 days. Staff see immediate results without affecting main course sales, building confidence for broader menu adjustments.
Calculate this yourself?
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Frequently asked questions
What if my team threatens to quit over price increases?
Explain that no price increase means: less profit, fewer investments in wages and expansion. Ask what their alternative solutions are for rising costs.
How much can I increase without losing guests?
Research shows that increases of 8-12% per year typically don't cause significant guest loss, especially if quality remains the same.
Do I need to raise all prices at once?
No, start with your most popular and unique dishes. Keep a few budget-friendly options available for price-sensitive guests.
How do I explain price increases to guests?
Train your team to say: 'We've chosen ingredient quality over low prices.' Focus on value, not apologies.
What if the competitor doesn't raise prices?
Check if their quality and portion sizes are comparable. Often competitors compensate secretly through smaller portions or cheaper ingredients.
Should I tell customers about price increases in advance?
Only for major increases above 15%. For smaller adjustments, simply update your menu and let the quality speak for itself. Advance notice often creates unnecessary anxiety.
📚 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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