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How to raise menu prices without losing customers

Updated

Ingredient, rent and wage costs keep rising, and a menu priced two years ago is probably losing money on some dishes. Raising prices is normal; doing it carefully keeps regulars happy.

Start with food cost, not a gut feeling

For each dish, add up what the ingredients cost per plate, then divide by the menu price. That percentage is the dish's food cost. Many restaurants aim for somewhere around 28–35%, but the right target depends on your concept and other costs.

Our free menu price calculator does the arithmetic: enter the plate cost and your target food cost, and it suggests a price.

Raise in small steps, dish by dish

Adjust the dishes that are furthest from your target first instead of adding the same amount to everything. Small, targeted changes are less noticeable than a blanket increase.

Protect the dishes people come back for

Your two or three signature dishes shape how guests feel about your prices. If you can, keep them steady and recover margin elsewhere, or add something that makes the new price feel fair, such as a better side.

Update the menu the same day

Nothing annoys a guest like a price at the till that differs from the menu. With a live QR menu you change the price on your phone and every table sees it immediately; with printed menus, you are waiting on a reprint.

Common questions

What food cost percentage should I aim for?

Many restaurants target roughly 28–35%, but it depends on your concept, portion sizes and other costs. Use it as a starting point, not a rule.

Should I tell customers about a price increase?

For regulars, a short, honest note about rising ingredient costs is usually well received.

How often should I review prices?

Check food cost on your best sellers whenever a key ingredient price moves, and review the whole menu at least twice a year.

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