How the numbers are worked out
The net price is the menu price with sales tax removed, if your menu prices include tax. The suggested price divides the ingredient cost by your target and adds the tax back on.
Worked example
A chicken tagine costs 3.75 in ingredients per portion and sells at 14.00 with no tax. Food cost is 3.75 ÷ 14.00 = 26.8%, under a 30% target, so the status is OK. At a 30% target, the suggested price is 3.75 ÷ 0.30 = 12.50.
Questions
What is a good food cost percentage?
It depends on the concept, but many operators aim for roughly 28% to 35% of the net menu price. Fine dining, fast casual, bakeries and bars all run different targets. Set yours in the calculator and watch where each dish lands.
How do I calculate food cost percentage?
Divide the ingredient cost of one portion by its net selling price, then multiply by 100. If your menu prices include tax, remove the tax first.
How do I price a dish from its cost?
Divide the ingredient cost per portion by your target food cost percentage. A dish costing 3.75 with a 30% target gives 12.50. If your prices include tax, add the tax back on.
Does food cost % include labour?
No. Food cost % counts ingredients only. Labour and packaging belong in total cost, which is why the full spreadsheet shows both numbers.