Restaurant Menu Pricing Calculator
Price restaurant menu items mathematically from raw plate cost and target food cost percentage, without confusing gross margin and markup.
Menu Pricing & Contribution Margin Formula
Menu Price = Raw Plate Cost / (Target Food Cost % / 100); Gross Profit Contribution = Menu Price − Total Plate Cost With Overhead- Raw Plate Cost: Total ingredient cost to prepare the finished dish.
- Target Food Cost %: Desired ratio of ingredient cost to menu price (28% standard).
- Markup vs Margin: A 28% food cost requires a 3.57x markup multiplier (Price = Cost / 0.28), NOT Cost × 1.28.
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- Menu price excludes sales taxes collected from patrons.
- Pricing model ensures contribution margin covers kitchen labor, occupancy, and profit.
Frequently Asked Questions
Why is markup different from food cost margin?
Food cost percentage is Margin (Cost / Price). A 25% food cost means a $3.00 dish sells for $12.00 ($3 / 0.25), which requires a 4.0x Markup ($3 × 4). Adding 25% markup would price the dish at only $3.75, resulting in massive business losses.
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Determine the exact cost to plate a single serving of any dish including main protein, sides, sauces, and garnishes, and calculate savings vs dining out.
Restaurant Food Cost Percentage Calculator
Calculate your actual restaurant food cost percentage for accounting periods or individual recipe plates, comparing against the 28% to 32% industry benchmark.
Food Profit Margin Calculator
Calculate restaurant gross profit, prime cost percentage (COGS + labor), and net operating profit margin across occupancy, utilities, and marketing.