The Restaurant Dilemma.
Over the past year, many restaurants have faced a dilemma. How to make up for rising source food costs? Generally the choice is to either put less food on the plates, or raise the retail price to consumers.
My advice - always raise the retail prices. Customers know that food costs are rising, and people will understand this upfront change. Less food is a 'hidden' change; Previously satisfied customers will be dissappointed when they discover a lesser product than what they were expecting.