Menu prices drift out of reality faster than most owners expect.
A quarterly pricing audit keeps tax math, wage assumptions, and inflation in sync so your margins do not quietly disappear.
Quick Summary
- Update top sellers monthly; run a full pricing audit quarterly
- Use CPI to decide review frequency, not gut feel
- Verify sales tax rates by address and keep pricing pre-tax
- Recheck wage floors, tip credit rules, and payroll tax assumptions
US Inflation Snapshot (Latest CPI)
BLS CPI (December 2025, 12-month change):
- All items: +2.7%
- Food: +3.1%
- Food away from home: +4.1%
- Full-service meals and snacks: +4.9%
- Limited-service meals and snacks: +3.3%
Restaurant inflation is still running hotter than groceries, so a quarterly audit beats an annual update.
Sales Tax Range Check (2026)
Sales tax is a stack of state and local rules. As of Feb 1, 2026, state rates range from 0% to 7.25%, and local add-ons can be large.
| State | State rate | Local range | Notes |
|---|---|---|---|
| Delaware | 0.000% | 0% | No state or local sales tax |
| California | 7.250% | 0% - 9.5% | Local add-ons vary by city/county |
| Alabama | 4.000% | 0% - 9.0% | Local add-ons can be high |
| Alaska | 0.000% | 0% - 9.5% | No statewide tax, local rates vary |
That range means the same $15 menu price can land at very different receipt totals by location.
Always confirm the exact rate for your address and keep food cost math on pre-tax revenue.
Wage Floor and Tip Credit Check (Federal)
Federal wage floors are still:
- Minimum wage: $7.25/hour
- Tipped cash wage: $2.13/hour
- Maximum tip credit: $5.12/hour
State and city rules often require more. Always follow the highest applicable rate.
Payroll Tax Assumptions (Employer Side)
Employer payroll taxes sit on top of the base wage:
- Social Security: 6.2%
- Medicare: 1.45%
- FUTA: 6.0% (typically 0.6% with full credit on the first $7,000)
Add your state UI rate and any benefits.
Loaded hourly cost = Base wage x (1 + FICA + FUTA + state UI) + benefits per hourExample: Base wage $15.00, FICA 7.65%, FUTA 0.6%, state UI 0%
Loaded hourly cost = 15.00 x (1 + 0.0765 + 0.006)
= $16.24/hourQuarterly Pricing Audit Checklist (US)
- Confirm sales tax rates for each location (address-level)
- Recheck wage floors and tip credit rules
- Update loaded hourly cost for top roles
- Update ingredient costs for top 10 sellers
- Reprice items that run 3+ points above target food cost %
- Review delivery fees and packaging for delivery-only items
- Review prime cost trend (food + labor)
Quick Reprice Formula
New price = New food cost ÷ Target food cost %Example:
- New food cost: $4.62
- Target food cost: 30%
$4.62 ÷ 0.30 = $15.40Round to $15.49 or $15.99 and recheck tax-inclusive totals.
Related Guides
- US Restaurant Menu Pricing Guide
- US Restaurant Sales Tax Pricing Guide
- US Restaurant Labor Cost Calculator
- US Menu Pricing Calculator
- US Menu Price Rounding Guide
- US Restaurant Prime Cost Calculator
- Menu Price Review Checklist
Want This Done Automatically?
KitchenCost recalculates recipe costs, food cost %, and price targets as your ingredient prices change.
If you want a faster way to protect margin, try KitchenCost.
Sources
- BLS - CPI news release (Dec 2025, published Jan 13, 2026)
- Sales Tax Institute - State sales tax rates (as of 2/1/2026)
- U.S. Department of Labor - Minimum Wage
- U.S. Department of Labor - Fact Sheet #15 (Tipped Employees)
- IRS - Topic No. 751 (Social Security and Medicare tax rates)
- IRS - Topic No. 756 (FUTA tax rate and wage base)