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Industry Insights

Menu pricing when costs keep rising

Author
Chad Hennig
Published
Read time
6 mins

When ingredient and labor costs climb, the reflex is to raise every price a dollar and hope nobody notices. Guests notice. The better path is less dramatic and more surgical.

Price items, not the menu

Every menu has items guests would happily pay more for and items they watch like hawks. Sales data tells you which is which. A signature dish with loyal fans can usually absorb a modest increase; the everyday staples that anchor a guest’s sense of value often should not move at all.

Engineer the middle of the menu

Some items are popular but barely profitable; others are profitable but overlooked. Before touching prices, try moving the overlooked ones into the light: better photos, better descriptions, a more prominent spot. Selling more of what already carries a healthy margin beats squeezing what does not.

Portions, bundles and honesty

A thoughtfully built bundle can protect the guest’s sense of a fair deal while improving the ticket. A quietly shrunken portion at the old price does the opposite; guests forgive a clear price change far more readily than the feeling of being tricked.

Rising costs are not going away. The restaurants that cope best treat pricing as an ongoing craft, informed by their own numbers, rather than a once-a-year scramble.

Give guests a better way to order — and your restaurant a better way to grow