Ingredient Costs Rising: Ways to Protect Margins Before Raising Prices
Raising menu prices is a last resort. There are things you can do first before touching the price tag.
Standardize Portions
There's a difference between "cutting portions" and "standardizing." If your portions aren't consistent and sometimes run large, standardization saves without customers noticing. But: never reduce elements that are the reason people buy — the main protein, espresso shots, key toppings.
Substitute Non-Critical Ingredients
Switch ingredients customers don't notice: cooking oil brand, takeaway packaging. These are savings invisible to customers but meaningful for margins.
Reduce Waste
Track what gets thrown out daily: what, how much, why. Frequently dumping milk? Maybe ordering too much. Bread going stale? Reduce stock orders. Waste data is often an eye-opener.
Menu Engineering
Push high-margin products to strategic positions in the menu and in cashier recommendations. This isn't hard-selling — it's directing demand toward products that are healthier for the business.
When You Do Need to Raise Prices
If all optimizations are done and margins are still squeezed — yes, raise prices. Small gradual increases are usually better received than one large jump.