The short answer: when prices won't stay still, stop managing costs once a year and start managing them every week. Know your food, drink and staff costs as a share of sales each week, cost every dish at today's prices, set rules for when you'll re-price, order and staff from your bookings rather than guesswork, and swap costs that grow with every guest for ones you can predict. None of this needs special software, but it does need a routine.
Why it's harder than it used to be
Small venues are dealing with several costs moving at once. In the UK, employer National Insurance rose to 15% in April 2025 and now applies to earnings above £5,000 a year. The National Living Wage rose to £12.71 an hour in April 2026. Food, drink and energy prices change from one delivery to the next. Some help has arrived too: from April 2026, many hospitality properties in England with a rateable value under £500,000 pay business rates on lower multipliers. The overall picture is that costs move more often, so the old habit of re-pricing the menu once a year leaves months of margin behind.
1. Track five numbers every week
Pick a day, and every week write down:
- Sales
- Covers, and average spend per cover
- Staff cost as a share of sales
- Food and drink cost as a share of sales (opening stock + purchases − closing stock, divided by sales)
Weekly numbers show a problem within days. A supplier's price rise or an over-staffed fortnight is obvious in the second week, not the third month.
2. Cost every dish at today's prices
For each dish and drink, add up the cost of every ingredient at what you pay now, including garnish, sauce and waste. Divide by the selling price (excluding VAT) to get the cost as a share of the price.
You'll usually find a few dishes that were profitable when you wrote the menu and aren't any more. Start with your ten best sellers: they matter most.
3. Decide your re-pricing rules in advance
Set a trigger, such as "if a dish's cost goes more than three points above target, we re-price, swap an ingredient or change the portion". Agreeing the rule before prices move takes the emotion out of the decision.
Ways to protect a margin without a headline price rise:
- Swap an ingredient for one that does the same job for less.
- Change the garnish or side, which is often where costs creep.
- Promote dishes with better margins, on the menu, on a specials board and in what staff recommend.
- Re-price a few items at a time, rather than the whole menu at once.
4. Buy smarter
- Compare prices regularly for your highest-spend lines, even if you stay with the same supplier.
- Cut the number of lines you stock. Fewer ingredients used across more dishes means less waste.
- Use seasonal produce when it's cheaper and better.
- Order from your bookings. If you know you have 40 covers tomorrow lunchtime and 90 on Saturday night, order for that, not for a guess.
5. Build the rota from your bookings
Staff are usually your biggest cost, and they're the one you can adjust session by session. Look at your covers by day and by hour, then match the rota to them. Two hours less on a quiet lunch each week adds up to a lot over a year.
The tools that help are simple: a booking diary that shows what's coming, a view of which days and hours are busiest, and a rota you can change easily. Cheeky Table's Insights shows your busiest days and hours and your quietest open day from your own bookings, and its shift planner sits next to the diary.
6. Protect the revenue side
Cost control is only half of margin. The other half is making sure the covers you could have had actually arrive:
- Cut no-shows with a reminder the day before and an easy way to cancel. See our guide to reducing no-shows.
- Catch bookings when you're closed with an online booking page linked from your website, Instagram and Google profile.
- Fill quiet sessions before cutting them. A weekday waitlist or a set menu can help.
7. Prefer costs you can predict
In a year when everything else moves, fixed and predictable costs are worth a lot. Check every service you pay for:
- Is it a flat fee, or does it grow with every guest, order or booking?
- What did it cost in your busiest month, compared with your quietest?
- Is there a contract, and how much notice do you need to give?
Per-cover booking fees are a common example: they're charged most heavily on your busiest nights. Our piece on why booking platforms charge per cover shows how quickly they add up, and the calculator on our pricing page works it out with your own numbers.
8. Tell guests what's changed, briefly
If you do raise prices, guests generally accept it when the food and service are good and the rise is modest. A short, honest note on the menu or your social media works better than saying nothing and hoping nobody notices.
A weekly routine that takes 20 minutes
- Write down the five numbers from last week.
- Check the invoices for any price rises on your top ten ingredients.
- Re-cost any dish that uses an ingredient that's gone up.
- Look at next week's bookings and adjust the rota and the order.
- Note one thing to change, and check whether it worked next week.
Frequently asked questions
What food cost percentage should a restaurant aim for?
It depends on the type of venue and menu, but many restaurants aim for food costs somewhere around 25 to 35% of the menu price. A café selling mostly coffee will run lower; a steak restaurant often runs higher. What matters is setting your own target and checking it weekly.
How often should a small restaurant re-price its menu?
Rather than a fixed date, set a rule: re-price, re-work or swap a dish when its cost moves a set amount above your target. In a period of rising prices that may mean small changes every month or two instead of one big change a year.
How do I cut staff costs without hurting service?
Build the rota from your bookings and your busiest hours, trim the quietest sessions first, and cross-train staff so fewer people can cover more roles. Avoid cutting on your busiest nights, when service drives repeat visits.
Are business rates lower for hospitality from April 2026?
From 1 April 2026, qualifying retail, hospitality and leisure properties in England with a rateable value under £500,000 pay business rates on new lower multipliers. Check your bill and your local council's website for what applies to your premises.
Cheeky Table is one flat £9.99 a month for independent restaurants, cafés, pubs and wine bars, with no per-cover fees: a cost that stays the same on your busiest night. Online bookings, reminders, a shift planner and Insights are all included. Claim 6 months free →