Price your menu for profit, not just popularity. Cost-plus versus value pricing, psychological price points, menu engineering basics, and how to raise prices without losing guests.
10
min read
Owners, Marketing Leads
Industry Guide
Overview
Your menu is both a sales tool and a cost-control tool. The goal is to balance:
What customers want
What you can execute consistently
What actually makes money
Key takeaways
Standardise recipes and portion sizes before you “fix pricing”.
Track contribution margin, not just food cost %.
Remove or rework items that create prep chaos or slow ticket times.
Review menu performance every 90 days.
Menu structure (keep it manageable)
Rule of 3–7 per section
Each category works best with 3–7 options. Too many options increases decision fatigue and kitchen complexity.
Signature focus
Pick 3–5 signatures and make them:
easy to spot on the menu
easy for staff to recommend
reliable to execute
Costing & target food cost
Minimum: cost your top 20 sellers
Build a recipe card (ingredients + yield)
Calculate plate cost
Set a target food cost % (typical 28–35% for many concepts)
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Remember: delivery platform commission + packaging changes the math. Cost and price those items separately.
Pricing sanity checks
Does the price match your positioning (value vs premium)?
Are you anchoring with one higher-priced item in the category?
Are add-ons (drinks, sides, desserts) priced for margin?
Menu engineering (stars / puzzles)
Simple 2x2
Plot items by:
Popularity (units sold)
Profitability (contribution margin)
Stars: popular + high margin (feature them)
Plowhorses: popular + low margin (adjust portion/price)
Puzzles: low popularity + high margin (rename/reposition)
Dogs: low popularity + low margin (remove)
Quick wins to lift profit
Increase price 3–5% on items with strong demand (test, don’t guess)