Picture this: you're staring at your monthly P&L, watching margins shrink while ingredient costs climb. Most restaurant owners cling to outdated prices, terrified of losing customers. But here's the reality—underpricing kills more restaurants than competitive pricing ever will.
Why price anxiety is more dangerous than price increases
Fear of losing customers makes sense. But low prices? They're slowly strangling your business.
💡 Example:
Restaurant with 100 covers per day, 6 days per week:
- Price too low: €2 per dish missing
- Per week: €1,200 loss
- Per year: €62,400 loss
Question: how many customers do you need to lose before this loss becomes bigger?
Lose 20% of customers but earn €2 more per dish? You'll still come out ahead. Math doesn't care about emotions.
The step-by-step approach: start small
Don't raise everything at once. Pick a test group and watch what happens.
💡 Example test group:
- 3 best-selling main courses
- Increase: €1.50 - €2.50 per dish
- Test period: 4 weeks
- Monitor: number of portions sold per week
Track portions sold for 4 weeks straight. Drop less than 15%? Keep the increase and expand to other dishes.
Communication is everything
How you frame the increase determines guest reaction. Transparency beats stealth price hikes every time.
- Emphasize quality: "We only work with fresh, local ingredients"
- Timing: Raise prices at the start of a new season
- Offer alternatives: Introduce a lunch menu with lower prices
- Show appreciation: "Thanks to you, we can keep investing in quality"
⚠️ Heads up:
Never raise prices more than 15% at once. Guests accept gradual adjustments much better than big jumps.
The numbers you need to monitor
Track these 4 figures weekly during your test to measure success:
- Number of covers per week: How many guests are still coming?
- Average check value: Are guests ordering less per person?
- Total weekly revenue: Is this increasing despite fewer guests?
- Food cost percentage: Is your margin actually improving?
💡 Successful scenario:
Before price increase (per week):
- 600 covers × €28 average = €16,800
- Food cost: 35%
After price increase (per week):
- 520 covers × €31 average = €16,120
- Food cost: 30%
Result: 13% fewer guests, but better margin and less stress in the kitchen.
Alternatives to direct price increases
Worried about losing customers? There are smarter ways to boost per-guest revenue without touching main prices:
- Adjust portion sizes: 200g steak instead of 250g saves €2.50 per portion
- Sell side dishes separately: Vegetables and potatoes no longer included
- Add premium options: "Upgrade to dry-aged beef for €4 extra"
- Promote wine pairings: Higher margin on wine than on food
From analyzing actual purchasing data across different restaurant types, portion adjustments often go completely unnoticed by guests while significantly improving margins.
Stop signals you can't ignore
Not every price increase works. Pull back and try alternatives if you see:
⚠️ Stop signals:
- More than 25% fewer guests after 4 weeks
- Negative reviews about price-to-quality ratio
- Total revenue drops consistently
- Competitors are significantly cheaper with comparable quality
If that happens, focus on cost reduction first: different suppliers, smarter purchasing, or menu adjustments with cheaper ingredients.
How do you run a safe price test? (step by step)
Select test dishes
Choose 3-5 dishes that sell well but have high food cost (above 35%). These dishes are the least risky to test because they need adjusting anyway.
Calculate new prices
Increase the price by €1.50-€2.50 per dish (maximum 15% increase). Calculate what your new food cost will be and make sure it comes in under 33% for a healthy margin.
Measure for 4 weeks
Track: number of portions sold per dish per week, total weekly revenue, and average check value. Compare with the same period last year to rule out seasonal effects.
Evaluate and decide
If you've lost less than 20% in number of portions but your total revenue stays the same or increases, the test is successful. Then expand to other dishes.
✨ Pro tip
Start with your 3 most expensive dishes that guests order anyway—if someone's already spending €32 on ribeye, they won't balk at €34. Test this for exactly 6 weeks before expanding to other menu items.
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 a price increase?
Up to 20% customer loss works if you earn €2+ more per dish. Your total revenue stays stable, but margins improve significantly.
Do I need to raise all prices at once?
Never. Start with your 3-5 best-selling dishes, test for 4 weeks, then expand based on results. This reduces risk and gives you real data.
What if competitors are cheaper?
Focus on why guests choose you: quality, atmosphere, service. If you can only compete on price, you've got bigger problems than pricing strategy.
How should I communicate price increases to staff?
Train servers to emphasize value, not defend prices. They should highlight quality ingredients, preparation methods, and what makes your dishes special compared to cheaper alternatives.
📚 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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