Remove the "gut feeling" from my

Quick answer

78% of restaurants fail within three years, often due to poor pricing strategies. Most owners set menu prices based on hunches rather than hard numbers. But there's a straightforward formula that eliminates guesswork entirely.

78% of restaurants fail within three years, often due to poor pricing strategies. Most owners set menu prices based on hunches rather than hard numbers. But there's a straightforward formula that eliminates guesswork entirely.

Why intuition fails at menu pricing

You glance at a pasta dish and think: "This should sell for €16." But where does that number come from? Your neighbor's menu? A random feeling? Meanwhile, your actual ingredient cost sits at €6.20, and you're barely scraping by.

⚠️ Watch out:

Intuitive pricing ignores fluctuating ingredient costs. Your supplier bumped prices 12% last year, but your menu stayed the same. Every pasta plate now eats into your profits.

The foolproof calculation for menu pricing

Here's the only formula you need:

Minimum selling price = Ingredient costs ÷ Target food cost %

Add VAT (multiply by 1.09). That's it.

? Example:

Your signature risotto breaks down like this:

rice" class="kn-ingredient-ref">Arborio rice: €1.20
Stock: €0.40
Wild mushrooms: €1.80
Aged parmesan: €1.60
White wine, butter, shallots: €1.00

Total ingredient cost: €6.00

Target 30% food cost: €6.00 ÷ 0.30 = €20.00 (before VAT)

Final price: €20.00 × 1.09 = €21.80

Choosing your target food cost percentage

Your restaurant type determines this number:

Fine dining: 28-32% (labor-intensive prep)
Bistro/brasserie: 28-35%
Casual dining: 25-32%
Fast casual: 25-30%

Can't decide? Start at 30%. From years of working in professional kitchens, this percentage works for most operations.

Your calculated price seems too steep?

Sometimes your formula spits out €28 while competitors charge €22. You've got three moves:

Source cheaper ingredients (new supplier, alternative products)
Reduce portion sizes (less cost per plate)
Accept thinner margins (bump food cost to 35%)

? Price adjustment example:

Your €6.00 risotto needs to hit €22 market price. That's 27.3% food cost (€6 ÷ €22 × 1.09). Works perfectly!

But if you calculated €28 and the market caps at €22:

Cut ingredients to €4.50 (€22 ÷ 1.09 × 0.30)
Or live with 36.7% food cost

Ditching spreadsheet calculations

Every menu item needs this treatment. That's dozens of calculations in Excel, especially when supplier prices shift.

Tools like KitchenNmbrs handle the math automatically. Input your ingredients, set your target food cost, and get instant minimum pricing.

⚠️ Watch out:

Refresh your prices quarterly. Ingredient costs creep upward constantly. Skip this step and watch your margins vanish silently.

Trading guesswork for precision

This calculation removes all uncertainty from profitability. No more wild guesses. No more month-end shocks.

Your pricing becomes strategic, not accidental.

How do you calculate the right menu price? (step by step)

Add up all ingredient costs

Make a list of all ingredients that go on the plate. Add up the exact costs: main ingredient, garnish, sauce, oil, butter. Don't forget anything, not even the parsley as decoration.

Choose your desired food cost percentage

For most restaurants, 30% works well. Fine dining can be 28-32%, fast casual 25-30%. Start with 30% and adjust as you see how your prices compare to the competition.

Calculate your minimum selling price

Divide your ingredient costs by your food cost percentage. Then multiply by 1.09 for the 9% VAT. This is your minimum price to be profitable.

✨ Pro tip

Calculate food costs on your 3 highest-volume dishes every 6 weeks. These items drive 60% of your kitchen's profitability, so keeping them dialed in protects your bottom line.

Calculate this yourself?

In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.

Try KitchenNmbrs free →

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Frequently asked questions

What if my calculated price is much higher than my competitor's?

Then you have three options: find cheaper ingredients, make smaller portions, or accept a higher food cost. Sometimes your dish is simply too expensive to sell profitably.

How do I factor in trimming loss in my ingredient costs?

For products with trimming loss (fish, meat), divide the purchase price by the yield. Whole salmon €18/kg with 45% trimming loss becomes €18 ÷ 0.55 = €32.73/kg fillet price.

Can I use different food cost percentages per dish?

Yes, you can. Appetizers often have a lower food cost (20-25%), main courses 28-35%. Just make sure your average food cost across all dishes comes out between 28-35%.

kennisbank.ingredients_in_article

Arborio Rice kennisbank.ingredient_card_meta Rice kennisbank.ingredient_card_meta Parmesan kennisbank.ingredient_card_meta Shallots kennisbank.ingredient_card_meta Butter kennisbank.ingredient_card_meta

ℹ️ This article was prepared based on official sources and professional expertise. While we strive for current and accurate information, the content may differ from the most recent regulations. Always consult the official authorities for binding standards.

Sources consulted

EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
NVWA — Hygiënecode voor de horeca (2024) — Official source
NVWA — Allergenen in voedsel (2024) — Official source
Codex Alimentarius — International Food Standards (2024) — Official source
FSA — Safer food, better business (HACCP) (2024) — Official source
BVL — Lebensmittelhygiene (HACCP) (2024) — Official source

Food Standards Agency (FSA) — https://www.food.gov.uk

The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.

Written by

Jeffrey Smit

Founder & CEO of KitchenNmbrs

Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.

8 years kitchen manager at 1NUL8 Group Rotterdam

Expertise: food cost management HACCP kitchen management restaurant operations food safety compliance

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