Prices are set based on the perceived value of the dish, as well as the desired profit margin. Premium or speciality items can command higher prices, while lower-cost ingredients can be used for higher-margin dishes. With fixed cost at an all time high at the moment it’s key to think about your prices on the menu. There are various techniques to this and there is no right and wrong way of doing this as each restaurant’s business model is different to the next. It’s all about knowing your customers and what they will be looking for. If you are in a highly prominent part of town and you think people are going to be looking at your prices then you’re are more likely to adopt the competitive pricing model where you research what similar restaurants in your area are charging for similar dishes. One thing I would say when it comes to your pricing strategy is once you know your margins and you are making a profit look for feedback from your customers as to their thoughts to gain an understanding of their perception of the menu.