The way around that is to raise prices and justify it by delivering more value than your competition--whether it is the quality of your crepes, your service, or the "added value" you can "give away" to customers, realizing that you are not really giving away anything . . . but rather enhancing the customer experience.
Creating a niche for yourself as a "premium" provider means you can enjoy higher margins while creating a brand and identity for yourself in the market.
Realize you'll lose some customers when you raise your prices; you always will. But they will "price shop" at your competition, and then your competitors will have to struggle with the fact they have more customers, but are serving them at a loss--a strategy you have already tried.
All the best. Brad Sugars.