Restaurant: calculating the cost of a dish and pricing your menu
A dish customers order a lot is not necessarily a profitable dish. To know what you really earn, you need the cost of each plate, ingredient by ingredient.
The cost of a dish
List every ingredient in one portion with its exact quantity, then multiply by the purchase price. A grilled chicken with 300 g of chicken at 2,500 per kilo, 100 g of onions and oil, and a little sauce costs, for example, 1,100 in raw materials.
Add a share for waste (peelings, cooking loss, leftovers): count 5 to 10% more.
The markup multiplier
In catering, the selling price comes from multiplying the ingredient cost by a coefficient, often between 2.5 and 3.5, to cover rent, staff, gas and profit. A dish with 1,100 of ingredients and a coefficient of 3 sells for about 3,300.
The coefficient varies: lower for a drink or an expensive dish, higher for a simple, cheap one.
Watch your food cost percentage
- Ingredient cost ÷ selling price = food cost percentage.
- Aim for 25 to 35% in a restaurant, more for a fast-turnover snack bar.
- Recalculate whenever a purchase price rises (chicken, oil, rice).
- Drop or rethink dishes that go well above the threshold.
Star dishes and trap dishes
Look at how often each dish sells and its margin together. A frequent seller with a good margin should be promoted; a frequent seller with a thin margin needs a new price or portion.
With Kaislo
Kaislo records every dish and drink sold, by table and by waiter, and the statistics show what sells most. With purchase prices entered, you also follow margin and the day’s expenses in the evening accounts.
Sales, stock, customer credit and evening accounts in one place, on phone or computer. 30-day free trial.
Restaurant: calculating the cost of a dish and pricing your menu
What food cost percentage should a restaurant aim for?
Generally 25 to 35% of the selling price excluding tax, depending on the type of restaurant and how much drinks weigh.
Should drinks be counted separately?
Yes: their ingredient cost is lower, so the coefficient is higher. Track them separately to see what they bring in.