Things You'll Need:
- Computer
- Printer
- Calculator
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Step 1
In order to raise your menu prices, you must first take a hard look at your costs. How much more are you paying today for your wholesale food items as opposed to six months or a year ago? Have a conversation with your rep about what their company is planning to do with regard to raising prices over the next year.
Remember - to keep your doors open you must work to keep food costs under a third of the amount you charge your customers. -
Step 2
Once you've taken time to figure exactly how much you are going to have to raise prices, you should consider creating some form of a Value Menu.
Your customers may tolerate the increase a little better if you offer at least a few things that are portioned smaller and have a smaller price tag to go along with them. Giving your customers a choice is important. -
Step 3
Write a letter to your customers. Explain in a concise paragraph or two that you have to raise prices and exactly why. Trying to trick them is a bad move. Consumers are pretty savvy and they will absolutely notice if you increase your prices or try to fly under the radar by shrinking portions.
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Step 4
Contact your local newspaper and see whether they are interested in a story about how a small business owner is trying to cope with rising prices and stay in business.
Some would argue it's risky to bring so much attention to the fact that you're raising prices, but I disagree. We're all in this together and putting a human face on this economic struggle will hit home to your customers. Explain what a difficult decision this was and how you have made the choice not to be "sneaky" about raising prices like some other restaurants. You understand your customers have fewer dollars to spend now and you believe they should be presented with the truth in order to make a better decision about where they spend their money. -
Step 5
As the owner, you should already be out and about in your dining room visiting with customers, but it will be more important than ever now. Try to personally thank everyone for choosing your restaurant or at the very least, make sure your staff is doing it. Consumers have fewer discretionary dollars and when they choose to spend those in your establishment, they should feel you appreciate it.
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Step 6
Occasionally offer free samples to customers in your dining room. If you sell cheesecake for example, make an extra one that is just for samples. The owner personally taking a nice sample to each diner once in awhile does three things: it shines the spotlight on a menu item, it makes your guests feel appreciative toward you and it adds value to their experience.
