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How to Calculate Food Cost per Dish (and Price Your Menu From It)

A step-by-step way to cost a dish from its recipe, work out food cost percentage, set a menu price that hits your target, and keep it right as supplier prices move.

2 min read

Food cost percentage is the number that quietly decides whether a busy restaurant makes money. Here is how to work it out per dish, and how to stop it drifting.

Step 1: cost the recipe

List every ingredient in the dish with the quantity used and the cost per unit, at what you actually pay your supplier:

Ingredient Qty used Cost per unit Cost
Chicken 0.25 kg 320 / kg 80.00
Butter 0.03 kg 500 / kg 15.00
Cream 0.05 l 200 / l 10.00
Spices and onion — — 12.00
Plate cost 117.00

If the recipe makes several portions, divide by the number of portions.

Step 2: food cost percentage

Food cost % = plate cost ÷ menu price (without tax) × 100

At a menu price of 380 before tax: 117 ÷ 380 = 30.8%.

Where menu prices include VAT (the UK, the UAE, Thailand), take the tax out of the price first, or the percentage looks better than it is.

Step 3: price for your target

Most restaurants aim for roughly 28–35% food cost. To find the price that hits a target:

Menu price (without tax) = plate cost ÷ target %

For a 30% target: 117 ÷ 0.30 = 390 before tax.

Step 4: keep it true

A costing done once is wrong within a month. Supplier prices move, portions creep and wastage goes unrecorded. Three habits keep it honest:

  • Update ingredient costs from real purchase prices, not last year's list.
  • Draw stock from recipes as dishes sell, so the stock count and the sales agree.
  • Record wastage with a reason, so it shows up as a cost instead of a mystery.

Feazio does this for every dish automatically: recipes draw ingredients with each sale, purchase prices update the cost and the margin on every dish is worked out from real costs. Work out a dish now with the free food cost calculator.

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How to Calculate Food Cost per Dish (and Price Your Menu From It) | Feazio