How do I calculate the cost price of a dish in my kitchen?

TL;DR

Calculating dish cost price accurately prevents profit leaks. Most restaurant owners guess their food costs and lose money daily. Learn the exact calculation method here.

Gather all ingredients and prices

Start with a complete overview of what goes on the plate. Don't forget anything:

• Main ingredients (meat, fish, vegetables)
• Garnishes and side dishes
• Sauces and dressings
• Oil, butter, salt, pepper
• Decoration and herbs

Look up the purchase price of each ingredient. Check your latest invoices or ask your supplier for current prices.

💡 Example:
For a steak with fries you need:
Steak 200g: €18/kg = €3.60
Potatoes 300g: €1.20/kg = €0.36
Butter 20g: €12/kg = €0.24
Sauce 50ml: €8/liter = €0.40
Vegetable garnish: €0.80
Subtotal: €5.40

Include trimming loss and waste

Not everything you buy ends up on the plate. During processing you always lose a portion:

• Fish: 40-55% trimming loss (head, bones, skin)
• Meat: 15-25% (fat, tendons, trimming waste)
• Vegetables: 15-25% (peels, outer leaves)

The formula: Actual price = Purchase price / (Yield % / 100)

💡 Trimming loss example:
Whole salmon €16/kg, trimming loss 45%:
Yield: 100% - 45% = 55%
Actual fillet price: €16 / 0.55 = €29.09/kg
So you pay almost €30/kg for salmon fillet, not €16.

⚠️ Watch out:
With trimming loss your product becomes more expensive, not cheaper. You divide by the yield, you don't multiply with it.

Additional cost items in cost price calculation

Don't forget the indirect costs that come with each dish in your calculation:

• Energy costs for cooking, baking and keeping warm
• Portion packaging for takeaway dishes
• Tableware costs (limited, but real due to breakage)
• Dishwashing costs (soap, detergent, energy)

These costs are small per portion, but together can make up 3-8% of your food costs. A rule of thumb is to add 5% of your ingredient costs for indirect costs.

Add everything up for the total cost price

Now you have all ingredient costs per portion. Add them together for the total cost price of the dish.

Don't forget to include the small things too:

• Bread and butter beforehand
• Olive oil for cooking
• Salt, pepper, herbs
• Lime slice as garnish

💡 Complete example:
Pasta carbonara cost price:
Pasta 120g: €0.48
Pancetta 80g: €2.40
Eggs 2 pieces: €0.60
Parmesan 30g: €1.20
Cream 50ml: €0.25
Olive oil, herbs: €0.15
Total cost price: €5.08

Calculate your food cost percentage

Now you know what the dish costs. Time to check if it's profitable. For this you calculate the food cost percentage.

The formula: Food cost % = (Cost price / Selling price excl. VAT) × 100

Note: always calculate with the selling price excluding VAT. The price on your menu card includes 9% VAT.

💡 Food cost calculation:
Pasta carbonara for €18.50 on the menu:
Selling price excl. VAT: €18.50 / 1.09 = €16.97
Ingredient cost price: €5.08
Food cost: (€5.08 / €16.97) × 100 = 29.9%
This is a healthy food cost for pasta.

⚠️ Watch out:
A normal food cost is between 28% and 35%. Are you above 35%? Then you're probably losing money on that dish.

Practical example: Complete cost price calculation

Let's calculate a complete dish: grilled salmon fillet with seasonal vegetables and mashed potatoes.

Step 1: Gather ingredients

• Salmon fillet 180g (from whole salmon €16/kg, 45% trimming loss)
• Potatoes 250g for mash (€1.50/kg, 20% peeling loss)
• Butter 40g (€12/kg)
• Cream 30ml (€3.50/liter)
• Seasonal vegetable mix 150g (€4/kg)
• Olive oil, herbs, salt: estimate

Step 2: Calculate actual prices

• Salmon: €16 / 0.55 = €29.09/kg → 180g = €5.24
• Potatoes: €1.50 / 0.80 = €1.88/kg → 250g = €0.47
• Butter: €12/kg → 40g = €0.48
• Cream: €3.50/liter → 30ml = €0.11
• Vegetables: €4/kg → 150g = €0.60
• Other ingredients: €0.25

Step 3: Total calculation

Subtotal ingredients: €7.15
Indirect costs (5%): €0.36
Total cost price: €7.51

At a selling price of €26.50 (excl. VAT €24.31) the food cost is: 30.9% - perfectly within the norm.

Common mistakes in cost price calculation

1. Forgetting to deduct VAT

Many hospitality entrepreneurs calculate food cost with the VAT-inclusive selling price. This gives a distorted picture because VAT is passed on to the customer, doesn't contribute to your margin.

2. Underestimating trimming loss

Especially with fish and meat, trimming loss is often estimated too low. Measure a few times how much usable product you get from your purchase - you'll be surprised.

3. Forgetting small ingredients

Oil, herbs, salt and garnish seem negligible, but together they can make up 10-15% of your cost price. Every parsley sprig and every drop of olive oil counts.

4. Ignoring seasonal fluctuations

Especially with vegetables and fish, prices vary enormously per season. After managing kitchen operations for nearly a decade, I've seen restaurants get caught off-guard by asparagus jumping from €8 to €24 per kilo in a single week.

5. Not standardizing portion sizes

If your cooks use different quantities, no cost price calculation is correct. Ensure clear portion guidelines and check regularly.

Update your prices regularly

Cost prices change constantly. Suppliers raise prices, seasons change, quality varies. Therefore check regularly if your calculation is still correct.

• Update prices every month
• Check after every supplier invoice
• Pay extra attention to seasonal products
• Track price increases of your top sellers

Food cost calculators help you maintain cost prices centrally and automatically recalculate when ingredient prices change.

Summary

Calculating the cost price of a dish requires a systematic approach: gather all ingredients including the smallest components, correct for trimming loss and waste, add everything up and calculate your food cost percentage. Don't forget to update your prices regularly and watch out for common mistakes like forgetting VAT correction or underestimating trimming loss. A food cost between 28% and 35% is healthy - if you're above that, adjustment of portion size or selling price is needed to remain profitable.

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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
• Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
• WHO — Foodborne diseases estimates (2024) — Official source

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