All guides
Pricing 4 min read
How to update menu prices when ingredient costs rise
A repeatable approach when supplier prices climb.
When an ingredient price changes, three things happen to the dishes that use it: cost per portion goes up, food cost % goes up, gross margin % falls.
The disciplined approach
1. Update the ingredient price in one place.
2. Look at every affected menu item.
3. For each, decide: absorb, partially absorb, or fully pass through.
4. Update each affected selling price.
When to absorb
If the increase is small (a few cents per portion) and other items are over-target, absorb it. Don't update menus over noise.
When to pass through
If the increase pushes a category meaningfully above target food cost, update prices, and tell your team why so they can answer guest questions.
Try it on your own menu.
Cost a dish in minutes. No spreadsheets.