EOFY is one of the best times for Australian cafes to reset pricing discipline. Many operators wait too long and then apply rushed, broad increases. This guide helps you make focused changes that customers can accept.
At a Glance
- Audit item-level margin before changing prices
- Reprice low performers first
- Use small phased adjustments when needed
- Train staff on a short customer explanation
EOFY Repricing Mistakes
- Raising prices evenly across all categories
- Ignoring labor and utility pressure
- Keeping poor-selling low-margin items
- No communication plan for regular guests
EOFY Price Reset Formula
New menu price = (Current item cost + Labor share + Overhead allocation + Buffer) / Target food cost %
Example: Core Lunch Item Reprice (Example Numbers)
- Food inputs: AUD 5.10
- Labor share: AUD 3.00
- Overhead allocation: AUD 1.70
- Buffer for volatility: AUD 0.70
- Total item cost: AUD 10.50
Target food cost: 32%
AUD 10.50 / 0.32 = AUD 32.81
A menu price around AUD 31.90 to AUD 33.50 can be healthier than holding legacy pricing too long.
Practical EOFY Playbook
- Review top 20 SKUs first
- Remove one weak seller each cycle
- Update POS, boards, and delivery apps on one date
- Track customer response for two weeks
Local Data Check (Australia)
EOFY pricing reviews are easier when decisions are item-level and data-backed. KitchenCost helps cafes test menu changes before rolling them out.