1. Introduce ‘Value Adds’ Rather Than Straight Price Hikes

Instead of charging $2 more for the same dish, add a small extra ingredient or garnish and frame it as an upgrade (e.g. “now served with house-made chilli oil”).

Why it works: Customers focus on the improvement rather than the price increase — a form of reframing the cost.

2. Implement Stealth Inflation (‘Shrinkflation’ or De-bundling)

Reduce portion size slightly or de-bundle items that used to be included (e.g. sides sold separately), but keep the headline price steady.

Caution: Use sparingly and only when the perceived value remains intact. Australian consumers are becoming more aware of shrinkflation and may resent it if it feels sneaky.

3. Segment Pricing by Time or Channel

Keep core menu prices stable during off-peak times but introduce premium pricing for high-demand periods (e.g. weekends, dinner rush). You can also test price increases on delivery platforms first, where price sensitivity is often lower.

Why it works: It allows you to optimise profitability without penalising your most loyal, dine-in regulars.

4. Create Limited-Time Specials at Higher Margins

Offer rotating “chef’s specials” or seasonal items with premium ingredients and higher price points. Customers don’t anchor these to previous prices.

Why it works: It allows margin recapture without affecting price expectations for core items.

1. Use Partitioned Pricing to Soften the Impact

Instead of increasing a single, all-inclusive price, break down the total cost into components (e.g., base price + small fixed surcharge for ingredients or staff). Research shows partitioned pricing can reduce “sticker shock” by making cost increases feel more transparent yet less painful (Kamenica, 2021). For example, subtly adding a “fresh ingredient surcharge” or “service support fee” allows customers to mentally separate these increases from the core product price.

Implementation:

• Communicate the surcharge clearly but neutrally to emphasize quality and sustainability benefits.
• Keep surcharges relatively small to avoid undermining value perceptions.

2. Implement Stepwise, Small Price Increases Over Time

Gradual price increases create less resistance than a single large hike. Consumer psychology demonstrates that frequent, modest increments maintain acceptance by reducing cognitive dissonance and anchoring expectations progressively (Dhar et al., 2023).

Implementation:

• Raise prices in 2-3% increments every few months rather than a sudden 10% jump.
• Pair adjustments with transparent messaging about cost pressures and quality maintenance.

3. Add Value or Bundle Without Raising Base Prices

Rather than raising prices, add perceived value through bundles or enhanced experiences. For example, a loyalty bundle (buy X meals, get a beverage free) or new complimentary side offering can offset price sensitivity by increasing overall utility (Yoo & Kim, 2021).

Implementation:

• Use bundles selectively with loyal customers or loyalty program members.
• Frame bundles as rewards or exclusive offers for regulars to strengthen emotional connection.

4. Frame Price Changes Around Quality and Ethical Benefits

Consumers tolerate price increases better when linked to higher quality or ethical sourcing narratives. Messaging emphasizing that adjustments sustain premium ingredients or fair staff wages can activate moral licensing and cause consumers to perceive price hikes as justified investments (Lee & Aaker, 2022).

Implementation:

• Craft messaging that highlights how price changes fund superior ingredients and fair labor practices.
• Use social proof or storytelling to reinforce authenticity and build goodwill.

1. “Bring-a-Friend” Offers

Reward your loyal customers for introducing new ones.

• “Bring a friend who’s never been, and you both get 20% off your order.”
• This leverages social trust, reciprocity, and doesn’t feel like a mass discount.

2. First-Time Experience Packages

Design an “intro offer” that frames the first visit as a curated experience:

• “First time here? Try our Starter Pack for $X — includes our three most popular items and a bonus treat.”
• This acts as choice reduction, risk minimisation, and social proof (because it’s “popular”).

3. Design for Shareability

Instead of pushing ads, create moments worth sharing.

• Example: free mini dessert or gift with first visit only if posted to Instagram with a tag.
• This generates earned media and authentic endorsements rather than paid noise.

1. Use Tiered Promotions That Signal Value Differentiation

Structure your promotions so new customers get a distinct, limited-time “welcome” offer (e.g., first-visit discount or exclusive product bundle), while your regulars receive loyalty rewards (points, exclusive access). This avoids price dilution but clearly signals “newcomer value” without undercutting loyal customers’ sense of exclusivity.

Why this works:

People cherish personalized treatment and fairness. Newcomers feel invited without perceiving a “bait-and-switch,” and regulars maintain their status, reducing feelings of inequity (Xia & Wyer, 2021). Explicitly labeling offers as “New Customer Special” and “Loyalty Appreciation” strengthens this effect.

2. Leverage Social Proof in Targeted Ads Featuring Real Regulars

Showcase testimonials or social media posts from satisfied loyal customers in your advertising for new audiences. This provides authentic endorsements while implicitly praising your regulars, turning them into brand ambassadors.

Why this works:

Social proof from relatable, authentic sources drives first-time trial more than generic messaging. It balances acquisition and retention by making your core community visible and valued (Lee et al., 2022). Authenticity cues increase trust, elevating the effectiveness of your promotions for new customers.

3. Frame New-Customer Promotions as Invitations, Not Discounts

Position introductory offers as exclusive invitations (e.g., “We’d love to welcome you to our community with this special offer”) rather than straightforward price cuts. This taps into consumers’ desire for belonging and reduces discount skepticism.

Why this works:

Invitation framing leverages social identity and inclusion motives, which are powerful drivers of trial and loyalty initiation (Patel & Kim, 2023). It simultaneously elevates the perceived value of your brand to newcomers without cheapening it for regulars.

1. Segment Your Offers Carefully

Use behavioural segmentation to ensure:

• Price-sensitive customers receive value-based offers.
• Loyal or premium customers get exclusivity-based rewards.

2. Maintain Price Integrity with Thresholds

Try:

• Minimum purchase discounts (e.g. $20 off $150+).
• First-time buyer incentives, to avoid harming perceived value among return customers.

3. Communicate Value, Not Just Price

Even when offering a discount, reinforce why your product is still premium: Talk about craftsmanship, sustainability, social proof, founder story — remind them why it’s worth the full price.

1. Use Occasion-Based and Narrative-Driven Promotions

Tie discounts to unique, themed “special days” or brand-relevant celebrations rather than generic sales. For example, “Luxury Appreciation Week” or “Founder’s Anniversary Sale” create emotional meaning around a promotion and position discounts as part of a curated brand story. Evidence shows consumers respond 25% more strongly to promotions anchored in a unique event versus generic offers (Zane, Reczek, & Haws, 2022).

Benefit: This approach combats discount fatigue by making offers feel deliberate and exclusive, not desperate. It also reinforces brand culture and gives customers a reason to celebrate, preserving perceived value.

2. Frame Promotions as “Gifts” not Discounts

Rather than “20% off” or “Buy 2 for $X,” reframe offers as bonus gifts — e.g., “Buy X, get Y free.” Such framing increases perceived generosity and value, reducing returns and improving customer satisfaction. Research shows gift framing reduces returns by up to 50%, helping preserve the product’s premium standing (Lee & Yi, 2019).

Benefit: Customers feel they’re gaining something extra rather than “getting a deal,” which softens the impact on brand prestige.

3. Limit Discount Frequency and Use Price Anchoring Subtly

Avoid frequent direct discounts which train customers to wait for sales and erode exclusivity. Instead, use scarcity cues or limited-time offers anchored to aspirational pricing information like “For a limited time, enjoy access at an exclusive rate—normally $XXX” without heavy discounting language.

Benefit: This preserves premium pricing signals while creating urgency, appealing to consumers’ desire for exclusivity rather than just savings.