Calculate a dish's food cost percentage, and find the menu price needed to hit your target food cost.
Food cost percentage tells you what portion of a menu item's selling price goes toward ingredient cost - a key number for keeping a restaurant or catering menu profitable.
Food Cost % = (Ingredient Cost ÷ Menu Price) × 100
Suggested Price = Ingredient Cost ÷ Target Food Cost %
A dish costing $4.50 in ingredients sold for $18.00 has a food cost of 25% - within the commonly targeted 25-35% range for restaurants.
Food cost % = (cost of ingredients for a dish ÷ menu price of that dish) x 100.
Many restaurants target 28-35% food cost, though this varies by cuisine type, price point, and business model.
It helps ensure each dish is priced to cover ingredient costs while leaving enough margin for labor, overhead, and profit.