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Restaurant Menu Pricing: How to Set Prices That Boost Profits And Keep Customers

ChowNow

Menu pricing isnt just about covering costsits about finding that sweet spot where profitability, customer perception, and operational reality meet. Set prices too low, and youre leaving money on the table. Most operators aim for food costs to be around 28-35% of the menu price, though this can change from restaurant to restaurant.

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BRING BACK THE 20 SEAT BISTRO

Culinary Cues

Paul de Vance in southern France, or the walled in villages of Tuscany, the narrow streets of Oslo, Norway, and the typical hidden villages found in parts of historic Germany; places that were home to those special little restaurants that reflect the terroir of the region. For the guest there was a high level of comfort and trust.

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Is There a Right Way to Raise Prices?

Modern Restaurant Management

Due to many factors including inflation and supply chain challenges, restaurant owners and operators have been faced with tough choice about raising menu prices. As food prices rise, restaurants should try to stay within their target ratio for food cost to gross food revenue in order to maintain target profits.

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ARE INDEPENDENT RESTAURANTS PRICING THEMSELVES OUT OF THE MARKET?

Culinary Cues

Of course, running a restaurant is difficult, wholesale prices of ingredients have risen dramatically since the pandemic, labor costs are out of control, and landlords have no mercy when it comes to establishing lease arrangements. So, are we pricing ourselves out of the market? This is not a place where restaurants want to live.

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Holiday Diners Seek Out Unique Experiences

Modern Restaurant Management

The demand for earlier reservations provides restaurants the opportunity to get creative when it comes to driving traffic for second and third seating’s with memorable experiences, dynamic pricing, or late-night specials. The focus should be on creating memorable dining experiences that align with the festive spirit.

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Oh, Canada: The Potential Impact of AI and Tariffs

Modern Restaurant Management

Operators would see increased prices in their supply chain, resulting in rising costs to their guests as well. Restaurants are responding with creative menu innovations, offering smaller portions, bundled meal deals, and "value bites" menus to provide premium experiences at reasonable prices.

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2025 F&B Trends: Newstalgia, Stealth Health, and Botanical Beverages

Modern Restaurant Management

While swicy took the front seat this year, Rubix’s proprietary research found that 5 percent more Gen Z respondents reported having frequent sweet and salty cravings over sweet and spicy. High menu prices have been an issue in the industry in recent years due to inflation, resulting in a decline in traffic as diners wish to spend less.

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