Is It Time to Raise Prices On Your Menu? Do This First…

Let’s talk about the elephant in the dining room – raising your prices. I know, I know… just reading those words probably made your stomach do a little flip. Between soaring food costs, labor challenges, and inflation that won’t quit, you’re feeling the squeeze from every direction. But before you break out in a cold sweat thinking about customer reactions, let’s have an honest chat about smart price increases.

First things first – breathe. You’re not alone in this. Every independent restaurant owner across the country is wrestling with the same challenge. The good news? You can handle this like a pro without sending your customers running for the hills.

Before You Touch Those Prices…

Hold up! Before you start punching numbers into your menu template, let’s make sure you’re not trying to solve the wrong problem. Think of it like checking your car’s tire pressure before buying a whole new set of tires.

Take a good, hard look at your operations first.

Are your portions doing the “slowly getting bigger” dance?

Is your bar inventory vanishing faster than free samples?

How’s your labor scheduling looking?

Sometimes what feels like a pricing problem is actually a systems problem in disguise.

The Smart Way to Raise Prices

Here’s the deal – when you do need to raise prices (and with today’s inflation, who doesn’t?), don’t play favorites with your menu. That popular pasta dish isn’t the only item that should carry the weight. Think of your menu as a team – everyone needs to pull their weight.

Pro tip: If you’re planning a menu redesign soon, that’s your golden opportunity. New menu, new prices, less sticker shock. It’s like getting a haircut and new clothes at the same time – everything feels fresh and intentional.

The “Don’t Do This” List

Want to know the fastest way to mess up a price increase? Here’s what not to do:

• Don’t jack up prices sky-high in one giant leap (unless you’re trying to cosplay an empty restaurant)
• Don’t just target your bestsellers (that’s like punishing success)
• Don’t ignore what each item contributes to your bottom line
• Don’t skip the systems check we talked about earlier

The Communication Game Plan

Here’s something that might surprise you – you don’t need to send out a press release about your price changes. In fact, the less said, the better. Handle questions if they come up, but otherwise, let your new menu speak for itself. Trust me, you’ll make more money than you’ll lose customers.

Give Yourself An Instant Raise

Let’s talk about the good stuff. When you handle price increases correctly, something magical happens – it goes straight to your bottom line. That means catching up on your own paycheck (remember those?), maintaining quality without sacrificing profits, and building a more sustainable business.

Think about it this way: your restaurant isn’t just a place to eat – it’s your livelihood, your team’s workplace, and a vital part of your community. Keeping it profitable isn’t just smart business; it’s essential for everyone who depends on you.

The Bottom (Profit) Line

Yes, raising prices can feel scarier than a health inspector’s surprise visit. But with today’s rising costs of, well, everything, it’s not just about making more money – it’s about staying in business to serve your community for years to come.

Remember, you’re not just a restaurant owner; you’re a business leader making tough decisions to keep your dream alive. So take a deep breath, review your systems, make those smart adjustments, and keep serving the food and experiences your customers love.

And hey, if anyone gives you grief about those new prices, just remind them that your amazing food is still a better deal than their monthly streaming subscriptions – and way more satisfying!

Ready to take control of your pricing? Start with that systems check today. Your future self (and your bank account) will thank you.

FREE Resource

If you need help by way of FREE tools, systems, training, increasing sales, controlling costs and a bunch of other challenges restaurant owners face today get our FREE Restaurant Success Kit and a FREE DFY Restaurant Membership by clicking below. Did I mention it was FREE?