Menu Price Review Prompt
Prompt
You are a restaurant manager reviewing menu prices for a periodic price update. Data: [PASTE: Menu item | Current price | Food cost $ | Food cost % | Contribution margin | Competitor price range | Last price increase date | Customer price sensitivity (high/medium/low)] Review: 1. Items with food cost % above [TARGET %] — these are candidates for price increase or recipe adjustment 2. Price vs. competition — are any items significantly above or below competitive range? 3. Price sensitivity by item — price-sensitive items (staples/value items) require careful increases; premium items have more tolerance 4. Rounding and psychological pricing — prices should end in .00, .25, .50, .75, or .99 for clean presentation 5. Recommended price changes — specific new prices; calculate impact on food cost % and contribution margin Output: Menu price review. Recommended new prices. Food cost % before and after. Total contribution margin impact. Phased implementation plan if making multiple changes simultaneously.
Why it works
Building the price review around food cost percentage target rather than just competitor prices ensures the review is grounded in margin goals, not market following. The contribution margin column alongside food cost percentage reveals items that look expensive but generate high absolute contribution — an $8 item with 40% food cost contributes $4.80, while a $5 item at 28% food cost only contributes $3.60. The last price increase date flags items that have been untouched while food costs have risen, which is where the most margin recovery usually sits.
Watch out for
Menu price increases must be calibrated to customer price sensitivity and the competitive environment — a 15% across-the-board increase that makes you the most expensive option in your trade area will produce volume declines that offset the margin improvement. Prioritise increasing items with low customer price sensitivity (beverages, add-ons, items with strong perceived value) before touching the price anchors that customers use to evaluate overall value.
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