Work out the food cost of a dish, ingredient by ingredient
Enter the ingredients of one portion and the menu price: find out what it costs you, what it leaves you and the price you should sell it at.
Your figures
Ingredients of one portion
g/ml
€
€0.22
g/ml
€
€0.72
pcs
€
€0.60
g/ml
€
€0.50
g/ml
€
€0.03
€
VAT included, as the guest reads it
%
%
The result
Food cost of the dish
19%
Ingredient cost per portion
€2.07
Price excluding VAT
€10.91
Gross margin per portion
€8.84
Lowest price that keeps the target food cost
€7.59
Food cost is worked out on the price excluding VAT. For an accurate figure use purchase prices and raw weights, waste included.
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Frequently asked questions
How is food cost calculated?
Add up the cost of the ingredients in one portion (quantity times purchase price) and divide the total by the selling price excluding VAT. For example, 2.07 € of ingredients on a 12 € menu price (10.91 € net) is a 19% food cost.
What is a good food cost for a restaurant?
A common target is 25-35% of the net price: lower for pizza and pasta, higher for meat and fish. The margin in euros matters too: a dish at 40% that leaves 12 € can be worth more than one at 20% that leaves 4.
Why is food cost worked out on the price excluding VAT?
Because VAT is not your revenue: you collect it on the State's behalf. In Italy food served at the table usually carries 10% VAT, so an 11 € dish leaves 10 € net.
Should I account for waste?
Yes. Use the weight you buy, not the weight that reaches the plate: if 1 kg of raw octopus gives 600 g cooked, the cost per portion is worked out on the whole kilogram.
A menu with the right prices, always up to date
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