NZ Cafe Menu Pricing Guide (2026): GST-Aware Costing for Small Owner-Operators

Most cafes do not fail pricing because they lack formulas. They fail because formulas are updated too late.

If your menu has not been recosted since supplier prices changed, you are pricing yesterday’s reality.

Quick Summary

• Build menu math ex-GST, then publish GST-inclusive prices.
• Use current wage floors in labor assumptions.
• Reprice high-volume, low-contribution items first.
• Run a weekly mini-review for top drinks and food SKUs.

NZ Snapshot You Should Model From

Stats NZ (December 2025 quarter, released 22 January 2026) shows:

• Annual CPI inflation: 2.2%
• Food prices annual change: +1.5%

Current legal wage floors (effective 1 April 2025):

• Adult minimum wage: NZD 23.50/hour
• Starting-out minimum wage: NZD 18.80/hour
• Training minimum wage: NZD 18.80/hour

NZ GST remains 15%.

Core Formula (NZ Cafe)

requiredExGstPrice = (foodCost + labourCost + cupPackaging + otherVariableCost)
                     / (1 - targetMargin)

displayedMenuPrice = requiredExGstPrice x 1.15

Worked Example (Flat White + Add-On)

Assumptions:

• Beans and milk cost: NZD 1.58
• Labor cost per cup: NZD 1.05
• Cup/lid and transaction variable cost: NZD 0.42
• Target margin: 32%

requiredExGstPrice = (1.58 + 1.05 + 0.42) / (1 - 0.32)
                   = 3.05 / 0.68
                   = NZD 4.49

displayedMenuPrice = 4.49 x 1.15 = NZD 5.16

Practical price point: NZD 5.20.

7-Day Pricing Reset Plan

1. Recheck top 10 SKU ingredient costs from latest invoices.
2. Refresh labor-per-item assumptions using current wage rates.
3. Recalculate ex-GST floor for each SKU.
4. Convert to GST-inclusive customer price.
5. Update POS, menu board, and delivery listings together.
6. Track daily contribution on changed items.
7. Keep or adjust based on 7-day results.

What Operators Usually Miss

1. Margin math done on GST-inclusive receipts only.
2. Old wage assumptions left in spreadsheets.
3. Add-ons priced from habit, not contribution.
4. One price logic copied across dine-in and delivery without channel checks.

Related Guides

• Recipe Cost Calculator Guide
• Prime Cost Guide
• Menu Price Review Checklist
• Break-Even Sales Calculator

KitchenCost helps small operators update recipe and menu costs quickly when wage or supplier assumptions change.

Try KitchenCost.

Sources (checked on 2026-02-14)

• Stats NZ - Consumers price index: December 2025 quarter
• Employment New Zealand - Minimum wage rates
• Inland Revenue (NZ) - GST
• Reddit: r/newzealand - eating out affordability discussion