3 pricing mistakes that are killing your profit margins

Setting prices may seem simple… but pricing mistakes are among the top reasons restaurants see their profits shrink.

Between gut feelings, habits, and guesswork, some pricing choices can seriously damage your bottom line.

Here are 3 common mistakes to avoid at all costs, and how data can help you fix them.

Underpricing a Best-Selling Dish

This is the most common mistake: a top-selling dish priced too low.

Imagine a homemade burger priced at €13, packed with high-quality ingredients (artisan bun, premium beef, fresh toppings…).

It sells well, sure — but the profit margin is razor-thin.

Why is this a problem?

You’re missing out on extra revenue, even though customers would likely accept a small price increase without blinking.

How to fix it:

• Analyze sales and profit margins by dish.

• Test small price increases (+€0.50 or +€1) and monitor sales.

• Adjust the recipe, if needed, to balance costs and perceived value.

  
  

✅ With Fyre, you can instantly spot dishes that are popular… but barely profitable.

Inconsistent Price Ranges on the Menu

A burger at €14 🍔 and a steak at €16 🥩?

Customers compare everything — often subconsciously.

A poorly balanced price range can:

• Undermine trust in quality.

• Slow down purchase decisions.

• Push customers to the “safe” (usually cheapest) option.

  
  

Why is this a problem?

Doubt leads to hesitation… and hesitation reduces sales.

How to fix it:

• Check price consistency within categories (starters, mains, desserts).

• Make sure your prices reflect your restaurant’s overall positioning.

• Keep your range balanced — not too wide, not too tight.

  
  

✅ With Fyre, you can easily spot pricing inconsistencies on your menu.

Not Adjusting Prices to Real Demand

Still keeping dishes on the menu that barely sell?

Selling tons of desserts but haven’t raised the price in months?

You're missing out on margin optimization opportunities.

Why is this a problem?

Consumer habits change fast. If you don’t track them, you risk outdated dishes, lower margins, and unnecessary waste.

How to fix it:

• Track which dishes are losing popularity.

• Adjust prices according to real demand.

• Remove “dead weight” or redesign the recipe to make it appealing again.

  
  

✅ With Fyre, you can track both popularity and profitability to make smarter, faster decisions.

The Bottom Line

Smart pricing isn’t about guessing.

It’s a powerful tool to boost your margins — without increasing your workload.

With the right data, you can:

• Sell better, not just more.

• Optimize your menu without compromising the experience.

• Strengthen profitability with confidence and clarity.

  
  

Ready to take control?

Fyre helps you:

✅ Monitor profit per dish.

✅ Spot pricing inconsistencies.

✅ Test pricing strategies and track results.

📥 Book a demo — and take back control of your profitability today.