Pricing a menu item from its cost
The most common method is to pick a target food cost percentage and divide the plate cost by it. With a 30% target, a dish that costs $1.50 needs at least $1.50 ÷ 0.30 = $5.00. The calculator does this for every recipe in the menu overview, so you can compare your current prices with the prices your target implies.
The formula gives a floor, not the final price. Round to a price that fits your menu, check what nearby places charge, and look at items with low food cost but high labor, which may need more.
Repricing after a supplier increase
When an ingredient goes up, change its price in the library. Every recipe that uses it updates, and the menu overview re-sorts so the items now over target rise to the top.
The formulas
- Cost of a line = amount used, converted to the pack's unit, ÷ pack size × pack price ÷ usable yield.
- Batch cost = the sum of every line. Lines marked "per serving" are multiplied by the servings in the batch.
- Cost per serving = batch cost ÷ servings per batch.
- Food cost % = cost per serving ÷ menu price × 100.
- Menu price for a target = cost per serving ÷ (target food cost % ÷ 100).
Questions
How do I calculate a menu price?
Divide the cost per serving by your target food cost percentage as a decimal. A $3.00 plate at 30% needs $10.00 or more.
Should I round menu prices?
Usually, yes. Treat the calculated number as the minimum and round to a price that suits your menu.
What if an ingredient price changes?
Edit it once in the ingredient library. All recipes and the menu overview update right away.
Where do the example prices come from?
They are made-up starting points, not market data. Replace them with your own invoices.