Put it in the price, not in a fee
When costs rise, a separate charge at the bottom of the bill can look like the easy option. It often goes badly.
In 2015, MPR News reported on the Oasis Cafe in Stillwater, Minnesota. A year earlier, the café added a 35-cent fee to every bill to cover a rise in the state minimum wage. That caused what MPR called "an online firestorm." When the minimum wage went up again, the owner dropped the fee and raised each menu price by 35 cents instead. He said customers "haven't noticed."
It's one café, and many things affect sales. But the lesson is easy to use: guests judge the price on the menu. A surprise at the end of the meal feels like a trick, even when the amount is the same.
Start with the dishes that cost you more
You don't have to raise everything by the same amount. Go through your supplier invoices and find the dishes where costs have risen most. Our guide to pricing a menu item shows how to work out what one plate costs you.
Then make the change in small steps. Here's an example for a small café:
| Item | Old price | New price | Why |
|---|---|---|---|
| Latte | 4.50 | 4.90 | Milk and coffee costs went up |
| Breakfast sandwich | 8.00 | 8.75 | Eggs and bacon cost more |
| Croissant | 3.50 | 3.50 | Cost barely changed |
| Soup of the day | 7.00 | 7.50 | Vegetables cost more |
| Cookie | 2.50 | 2.50 | Kept as a low-cost choice |
Leaving a few favorites at their old price gives regulars something familiar. It also keeps a cheap option on the menu for guests watching their spending.
Keep a choice at the old price
The Two Franks café in Coburg, Australia found a neat way to do this. When owner Chryssie Swarbrick put through what she called "a significant price rise," the café added a new small coffee at the old regular price. The medium and large sizes went up.
Guests who wanted to spend the same as before still could. Everyone else paid more for a bigger cup. You can do the same with a smaller portion, a lunch version of a dinner dish, or a simpler option without the extras.
Tell people before they see it
Swarbrick didn't let customers find out at the till. The café posted "a long-form note on our Instagram as a carousel post," explaining that prices were going up and why. They shared it in their stories too, and kept a printed copy by the door and at the register for two weeks.
She's open that not everyone liked it. Some customers were disappointed, and a few were rude. Her advice was to be "clear, honest and communicative."
Your note can be short. Something like this works:
Starting November 1, some of our prices will go up. Our costs for milk, eggs and coffee have risen a lot this year, and we want to keep using the same suppliers. The small coffee stays at today's price. Thank you for sticking with us.
Name the real costs. "Due to inflation" sounds like an excuse. "Eggs cost us twice what they did" sounds like a person.
Change every copy on the same day
Guests notice fast when the board says one price and the till charges another. Before the change, list every place your prices appear:
- your printed menus and table cards
- the menu board or chalkboard
- your till or POS
- your online menu and website
- Google, if you've typed menu items into your Business Profile (see adding your menu to Google)
- delivery apps
- any PDF menus you've sent to event planners or hotels
Update them all on the same day. Then pick two or three items and check that the price matches everywhere. Our article on problems owners have with digital menu builders shows how old copies of a menu cause confusion.
If your menu is on Menupresso, you change the price in the editor and save. The menu link and QR code stay the same, so your printed QR codes keep working and show the new price. You'll still need to update the till, the board and any delivery apps yourself.
Watch for a few weeks
After the change, keep an eye on how often the changed items sell. A small dip in the first week is normal while people adjust. If one dish drops a lot and stays down, look at it again. The price may be too high for what's on the plate, or a guest may now see a better deal elsewhere on your menu.
Ask your staff too. They'll hear what regulars say long before it shows in the sales figures.