How Much Can You Raise Menu Prices in 2027?
Your costs went up again. Your guests already think dinner out costs too much. Raise prices and you might lose them. Don’t, and you lose money on every plate.
The answer isn’t one big increase across the menu. It’s knowing which dishes can carry a higher price and which ones can’t. This page shows an owner or manager how to find out.
Dr. Paul Borosky, Business Consultant, has walked 1,000+ owners through pricing decisions like this one.
Talk to Dr. PaulCall or text (321) 948-9588.
Last Updated: November 2026
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Model new prices before you print the menu.
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Need the short version? Read Doctor Owl’s answer and the box below. Want to see it done? Follow Marco, the manager at Fast Frankie’s pizza shop in Dr. Paul’s Fabled Forest Business School Series, as he stops Frankie from raising every price on the menu by the same dollar.
- List your top 10 sellers and what each one costs you to make, ingredients only.
- Divide each cost by the menu price. Circle any dish where the cost is above about a third of the price.
- Pick one circled dish to reprice this month. Leave the rest alone for now.
How Did Marco Stop Frankie From Raising Every Price?
Frankie had a plan. Add a dollar to everything on the menu, print it Monday, done. Marco, his manager, asked for one week first.
Doctor Owl backed Marco. “Is this a fire, or a foundation?” he asked. Frankie’s costs were a fire. But a careless price jump could start a second one. So they used Dr. Paul’s Organize-Plan-Grow™ Strategy to slow down and look.
- Organize. Marco pulled the cost of every pizza. The plain cheese pie, the one families order every Friday, was already priced fine. The loaded specialty pie was underpriced by a lot.
- Plan. They raised the specialty pie and two sides. The cheese pie stayed put. Frankie hated that part. Marco showed him the Friday orders.
- Grow. Marco tracks weekly orders on the three changed items for four weeks before anything else moves.
Illustration only: the loaded pie went from $18 to $20. Orders dipped for a week, then came back, and the cheese pie kept Friday nights full.
A flat increase would have hit the one pizza guests watch most.
What’s Happening to Menu Prices?
Restaurants have already raised prices a lot. The National Restaurant Association reports menu prices rose 36% from February 2020 to May 2026. Over a similar stretch, wages rose 41% and wholesale food rose 35%.
For 2027, the USDA expects prices at restaurants to rise about 2.6%, with a likely range of 0.2% to 5.1%. That’s slower than costs have been climbing. Guests are noticing, too. They trade down, skip a drink, or come in less often.
Wages and food are measured from 2019. Menu prices are measured from February 2020. Source: National Restaurant Association, via MarketScale (October 2026).
Why Are the Easy Price Increases Gone?
The easy price increases are gone. Most guests won’t notice a quarter on a dish they rarely order. They will notice a jump on the burger they get every week.
So the work is sorting your menu. Some dishes are traffic drivers. They bring people in, even at a thin margin. Others are where you make your money. Price them differently.
How Do You Raise Prices Without Losing Guests?
- Know your plate cost. Cost out every dish from your actual invoices, not last year’s numbers.
- Protect two or three traffic drivers. Pick the dishes guests compare you on. Keep those prices steady if you can.
- Raise the underpriced dishes first. Specialty items and add-ons usually have the most room.
- Rework before you reprice. A smaller portion, a different side, or a cheaper garnish can fix a dish without a new price.
- Move one price at a time. Give each change four weeks of sales before the next one.
What Does a Smart Price Change Look Like in Dollars?
Illustration only. Round numbers, not a real restaurant.
Say a $16 dish goes to $17 and you lose a few orders. If most guests stay, that dish still earns more each month than it did before.
Want a Second Set of Eyes on Your Prices?
Bring your menu and a recent month of sales to a free 15-minute call with Dr. Paul. You leave knowing which two or three prices to look at first, and what deeper pricing help would cost if you want it.
Or call or text (321) 948-9588.
What Do Owners Ask About Raising Menu Prices?
Should I raise all my prices at once?
Usually not. A flat increase hits your most-watched dishes too. Raise the underpriced items first and leave your traffic drivers for last.
How do I know if a price increase worked?
Compare orders and profit on that dish for four weeks before and after. If profit is up and orders held, it worked.
Is it better to shrink a portion or raise the price?
Sometimes a small rework is the better move. Guests notice prices faster than they notice a slightly different side.
About the Author
Dr. Paul Borosky, DBA, MBA, helps restaurant owners set prices from real costs instead of guesses. He works with small business clients in all 50 states and Canada.
Sources
- National Restaurant Association, restaurant profitability analysis (July 2026), as reported by MarketScale, October 28, 2026.
- USDA Economic Research Service, Food Price Outlook (September 25, 2026).