Increasing prices in the hospitality industry: How to communicate it fairly

When an increase is necessary

Raising prices in the hospitality industry is difficult for many restaurant owners. The fear of losing regular customers is great. But those who wait too long will eventually earn nothing on some dishes – or even lose money.

A good reason to recalculate is significantly increased purchase prices, new wage settlements, or higher energy costs. Then recalculate each dish and see where you are below your target. Not every price needs to increase, and not every one by the same amount.

Step by step instead of all at once

A significant increase across the entire menu is noticeable. Smaller, targeted adjustments are more likely to be accepted:

• First adjust the dishes whose food costs have increased the most.
• Keep popular starter dishes, such as the lunch menu, stable if possible.
• Round prices up by a few cents rather than increasing them less frequently but more transparently.
• Combine price increases with a seasonal change if new dishes are coming anyway.

Revise the menu instead of just swapping numbers

A price increase is a good opportunity to review the menu as a whole. Perhaps a side dish can be changed, a portion adjusted, or a dish replaced with one that has better margins. Guests perceive a revised menu differently than the same menu with new prices.

Avoid hidden reductions. Reducing the portion quietly while keeping the price the same risks more trouble than an open increase.

Explain honestly to guests

A long justification is not needed. Many guests are familiar with rising prices from their own daily lives. A short, friendly note is often sufficient – for example on the menu, on the website, or from service staff when someone asks.

• Stay objective: Our purchase prices have increased, so we have adjusted some prices.
• Show what remains the same: quality, suppliers, portion size.
• Prepare the staff so that they can respond calmly to inquiries.

Digital menu: change all prices at once

Once the decision has been made, the new prices should apply everywhere simultaneously: on the printed menu, on signs, at the register, on the Google profile, and on the digital menu. Different prices at different locations lead to discussions at the register.

You change a digital menu from Same-QR in one place, and the printed QR codes will immediately lead to the new version. Printed menus should be exchanged on the same day. Legally, in Germany and Austria, final prices including taxes must be stated, and the guest must be able to see the price before ordering.

Checklist for the day of the switch

• New prices stored in the cash register system.
• Printed menus, signs and notices at the entrance were exchanged.
• Digital menu and Google profile updated.
• Delivery platforms and website adapted.
• Team informed so that everyone gives the same explanation.

It is best to make the change on a quiet day, such as at the beginning of the week. This leaves time to notice errors before the weekend arrives.

Frequently asked questions