Many Australian operators wait too long between price updates, then try to fix margin in one big move. That usually creates customer friction and still misses where costs are actually leaking.
This checklist gives a tighter operating rhythm: one monthly review cycle, clear GST handling, and surcharge checks that match ACCC display rules.
Quick Summary
- Review pricing monthly with an item-level focus.
- Run cost metrics on
ex-GSTsales. - Keep customer-facing menu prices GST-inclusive.
- Validate surcharge wording and POS behaviour at the same time as price edits.
Why Monthly Review Is Safer in 2026
ABS reported on 2026-01-28 (December 2025 quarter):
Meals out and takeaway food:+3.5%year over yearFood and non-alcoholic beverages:+3.4%year over year
If your menu updates lag this pace, gross margin usually erodes before you notice it in monthly P&L.
Step 1) Convert Sales to an Analysis Base (ex-GST)
Australian menus are displayed GST-inclusive, but pricing control should use ex-GST numbers:
netSales = grossSales / 1.10
foodCostRate = foodCost / netSalesSimple check:
- Menu price shown:
A$16.50(GST-inclusive) - Analysis price base:
A$15.00(ex-GST)
Step 2) Recalculate Menu Floor Price
Use your target food cost rate for each item:
menuFloorPriceExGST = newFoodCost / targetFoodCostRate
displayPriceInclGST = menuFloorPriceExGST x 1.10Example:
- Updated dish food cost:
A$5.40 - Target food cost rate:
30%
menuFloorPriceExGST = 5.40 / 0.30 = A$18.00
displayPriceInclGST = 18.00 x 1.10 = A$19.80Then round to your brand ladder (for example A$19.90).
Step 3) Surcharge Rule Check (Before Publishing New Prices)
When surcharges apply, disclosure quality matters as much as math. A practical review item before publishing:
- Confirm surcharge wording is visible on menu and ordering surfaces.
- If one surcharge applies every day, include it in displayed total prices.
- Test POS receipts for weekend/public holiday settings.
Local Execution: Sydney CBD vs Suburban Perth
| Location context | Common pricing issue | Practical move |
|---|---|---|
| Sydney CBD lunch rush | Labour and packaging volatility in short peak windows | Reprice top 5 lunch movers first and review takeaway packaging monthly |
| Suburban Perth family trade | Lower weekday turnover and discount-heavy bundles | Rebuild bundle pricing from current item costs before running promotions |
20-Minute Monthly Menu Price Loop
- Pull top 20 items by revenue and volume.
- Update current ingredient costs and packaging assumptions.
- Recalculate ex-GST floor prices and GST-inclusive display prices.
- Check surcharge disclosure text and POS surcharge behaviour.
- Publish only high-impact adjustments first.
Related Guides
- Australia Menu Pricing Guide
- Australia Menu Pricing Calculator
- Australia Menu Price Rounding Guide
- Australia Restaurant Surcharge Guide
- Australia Restaurant Labour Cost Calculator
- Australia Restaurant Prime Cost Calculator
- Australia Delivery App Pricing Guide
KitchenCost helps you update recipe cost, target price, and GST-consistent menu outputs in one workflow.