UK Menu Price Increase Notice Template (2026): VAT, Timing, and Customer Copy

Raising prices is operationally simple. Keeping trust while you do it is the hard part.

In UK hospitality, guests generally accept small increases when the message is short, specific, and posted consistently across all channels. This guide gives you a practical local playbook for 2026: VAT math, timing, city-style examples, and copy you can publish today.

Quick Summary

• UK CPI annual inflation was 3.4% in December 2025 (ONS release date: 21 January 2026).
• The UK National Living Wage for workers aged 21 and over rises to GBP 12.71/hour from 1 April 2026.
• Recalculate ex-VAT margins first, then publish VAT-inclusive customer prices.
• Keep notice copy short: what changed, effective date, and service commitment.
• Use one effective date across dine-in, web ordering, and delivery apps.

Why This Matters for UK Operators in 2026

In the ONS December 2025 bulletin, annual CPI reached 3.4%, and the CPIH category for restaurants and hotels was 3.8%. That means many operators saw cost pressure from both supplier invoices and payroll at the same time.

A price update is therefore an operations decision first, and a communication task second. The wording matters, but the numbers behind it matter more.

From 1 April 2026, the National Living Wage is GBP 12.71/hour for workers aged 21 and over. If your rota is labour-heavy, price planning should happen before the notice goes live.

Step 0) Reset Labour Baseline Before Drafting Copy

Start with top sellers only and run one baseline pass:

Required net price = (Ingredient cost + labour minutes x hourly labour cost + packaging) / target food-cost ratio

If the updated hourly labour cost pushes a best-seller under your floor margin, reprice it before any public notice goes out.

Step 1) Set New Prices From Margin, Not Guesswork

Use this formula first:

Required net selling price = Current item cost / Target food cost %

Example:

• Current burger cost: GBP 4.55 (ex-VAT basis)
• Target food cost: 35%
• Required net selling price: GBP 13.00 (4.55 / 0.35)

Then convert to customer-facing VAT-inclusive prices:

Ex-VAT value = VAT-inclusive price / 1.20
VAT-inclusive price = Ex-VAT value x 1.20

Most UK guest-facing menus are VAT-inclusive, so final board prices should be reviewed in that format, not only in ex-VAT spreadsheets.

Step 2) Local Example: London Lunch Site vs Leeds Neighbourhood Site

Two sites can need different price movement even with the same headline inflation.

Example assumptions:

• Central London weekday lunch site: high peak-hour labour intensity, lower delivery share
• Leeds neighbourhood site: steadier evening demand, higher delivery mix

The practical takeaway: do not copy one site’s increase percentage to another without checking channel mix and labour profile.

Step 3) Decide Notice Timing by Sales Channel

• Dine-in: usually 2-4 weeks notice
• Delivery apps: update prices and notice text on the same effective date
• Corporate/event clients: follow contractual notice terms, usually longer windows

Consistency matters more than volume of explanation. Different effective dates across channels create avoidable complaints.

Step 4) Copy Templates You Can Use Today

In-store sign (short)

From [DATE], selected menu prices will be updated to reflect higher ingredient and operating costs. Thank you for supporting our local team.

Menu insert (slightly longer)

We have kept prices stable for as long as possible. From [DATE], selected prices will change so we can maintain quality, portions, and reliable service.

Delivery app notice

Price update effective [DATE]. Selected item prices have been adjusted to maintain food quality and reliable service.

Front-of-house script

A few items were repriced this week so we can keep quality and portion standards consistent. If you want, I can walk you through the updated menu options.

UK Price Increase Execution Checklist

• Recalculate top 20 sellers with latest ingredient, labour, and packaging costs
• Convert ex-VAT internal prices to VAT-inclusive guest prices before publishing
• Align effective dates across in-store, website, QR, and delivery apps
• Brief team members with a 10-second response script
• Review sales mix and complaint tags for 14 days after launch

Mistakes That Cost More Than the Increase Itself

1. Posting different prices across channels for several days
2. Publishing copy before running ex-VAT margin checks
3. Raising every item equally instead of protecting volume winners
4. Waiting to prepare staff until after the first complaints

Related Guides

• UK Menu Pricing Calculator
• UK Restaurant VAT Pricing Guide
• UK Menu Price Review Checklist
• Menu Price Increase Timing Guide

Sources

• ONS - Consumer price inflation, UK: December 2025 (released 21 January 2026)
• GOV.UK - National Minimum Wage and National Living Wage rates
• GOV.UK - Minimum wage rates for 2026
• GOV.UK — VAT rates

If you want to run these checks faster each month, KitchenCost helps you update costs, margins, and target prices in one workflow.