The selling price determines whether you make a profit or run a loss. Many restaurant owners guess what a dish should cost, causing them to lose money without realizing it. ...
How do you know if your main course pricing actually turns a profit? Too many restaurant owners wing it with pricing, unknowingly bleeding money on every plate they serve. Here's exactly how to calculate selling prices that keep your business profitable.
Getting your main course pricing wrong can sink your restaurant faster than you'd think. Price too low and you're losing money on every dish. Price too high and customers walk away. Here's how to nail the sweet spot.
First, gather your ingredient costs
You can't price what you don't measure. Track every single ingredient that touches the plate:
- Main ingredient (meat, fish, vegetarian)
- Side dishes and garnishes
- Sauces and dressings
- Oil, butter, spices
- Everything that leaves the plate
💡 Example:
Steak with fries and salad:
Steak 200g: €6.40
Fries 150g: €0.45
Salad and garnish: €1.20
Sauce and butter: €0.95
Total ingredient costs: €9.00
Determine your desired food cost percentage
Food cost percentage shows how much of your selling price goes toward ingredients. Main courses typically run 28% to 35%. Go lower and you risk pricing yourself out. Go higher and there's nothing left for labor, rent, or profit.
⚠️ Note:
Food cost under 25% often means you're overpriced for your market. Above 35% leaves barely any room for operating expenses.
Common food cost percentages:
- Fine dining: 28-32%
- Casual dining: 30-35%
- Bistro: 28-33%
- Casual eatery: 25-30%
Calculate your minimum selling price
Now you can figure out what to charge. The math is straightforward:
Minimum selling price (excl. VAT) = Ingredient costs ÷ (Food cost % ÷ 100)
💡 Example:
Ingredient costs: €9.00
Desired food cost: 30%
Calculation: €9.00 ÷ 0.30 = €30.00 excl. VAT
Menu price: €30.00 × 1.09 = €32.70 incl. VAT
Check if your price is realistic
A mathematically correct price isn't always a smart price. Reality-check your numbers:
- What do similar restaurants charge for comparable dishes?
- Does this align with your other main courses?
- Can your target customers afford this?
- Will you stay competitive?
💡 Example check:
Your calculated price: €32.70
Competitor charges: €28.50 for similar dish
Options: Source cheaper ingredients, reduce portion size, or accept lower margins to compete.
Adjust where needed
If your calculated price seems too steep, you've got three moves:
- Adjust ingredients: Find better suppliers or substitute expensive items
- Modify the recipe: Tweak portions or swap costly ingredients
- Accept higher food cost: Lower profit margin but stay market-competitive
⚠️ Note:
Never price below cost. You'll hemorrhage money on every sale. Better to axe the dish entirely.
Advanced calculations for optimal pricing
Want to dig deeper? Calculate your break-even point—how many dishes you need to sell to cover fixed costs:
Contribution per dish = Selling price - Ingredient costs - Variable costs
Example: Selling price €32.70, ingredient costs €9.00, variable costs (energy for prep) €2.00 = €21.70 contribution per dish. This contribution must cover staff wages, rent, and other fixed expenses.
Seasonal influences and price adjustments
Ingredient prices swing with seasons and market conditions. After managing kitchen operations for nearly a decade, I've learned to recalculate every 3-6 months. Smart moves include:
- Seasonal ingredients for lower costs
- Fixed supplier contracts for price stability
- Flexible menu design for quick ingredient swaps
Practical example: Restaurant The Golden Spoon
Restaurant The Golden Spoon wants to launch a salmon main course. Owner Maria breaks it down:
Ingredient list:
- Salmon fillet 180g: €5.85
- Grilled vegetables 120g: €1.40
- Mashed potatoes 100g: €0.65
- Hollandaise sauce: €0.80
- Spices and oil: €0.30
Total ingredient costs: €9.00
As a casual dining spot, Maria targets 32% food cost:
Minimum selling price = €9.00 ÷ 0.32 = €28.13 excl. VAT
Menu price = €28.13 × 1.09 = €30.66 incl. VAT
Maria rounds to €30.95 because it fits her other mains (€28.50 - €34.50). Her actual food cost becomes 31.8%—right on target.
Common pricing calculation mistakes
1. Forgetting 'invisible' ingredients
Cooking oil, salt, pepper, and spices seem minor but add €0.50-€1.00 per dish. Account for everything that touches the plate.
2. Calculating with purchase prices instead of actual costs
Buy 1kg meat for €20.00 but trim away 200g? Your real cost is €25.00 per kg of usable meat.
3. Too static pricing calculation
Ingredient prices shift constantly. Review quarterly minimum and adjust when needed.
4. Ignoring portion sizes in practice
Calculate for 200g meat but cooks consistently serve 230g? Your math won't work. Train staff or update calculations.
5. Only looking at food cost
Low food cost dish with 45-minute prep time can cost more than higher food cost dish that's ready in 10 minutes.
Summary
Smart selling price calculation goes beyond simple formulas. Start with precise ingredient costs, set realistic food cost percentages for your restaurant type (25-35%), then apply the formula: Selling price = Ingredient costs ÷ Food cost percentage. Always market-test your calculated prices and adjust accordingly. Monitor prices regularly and dodge common traps like missing micro-ingredients or ignoring portion drift. This approach delivers profitable dishes that customers actually want to order.
How do you calculate the selling price? (step by step)
Add up all ingredient costs
Make a list of each ingredient that goes on the plate. Calculate how much each portion costs, including sauces, garnishes, and oil. Don't forget anything, including the butter on the plate.
Choose your desired food cost percentage
Determine what percentage of your selling price can go to ingredients. For main courses, 28-35% is common. The lower it is, the more profit you keep.
Calculate your minimum selling price
Divide your ingredient costs by your desired food cost percentage. Multiply the result by 1.09 for the price including VAT on your menu.
Check if your price is realistic
Compare with competitors and your other dishes. Does this price fit your concept? Can your guests afford it? If not, adjust ingredients or portion size.
✨ Pro tip
Recalculate your top 3 bestselling mains every 8 weeks. These dishes drive most of your profit, so even small cost creeps can seriously damage your bottom line.
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In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
Should I include VAT in my selling price calculation?
Always calculate excluding VAT first, then add 9% VAT for your menu price. Calculate food cost using the pre-VAT price, otherwise your percentages will be wrong.
What if my calculated price comes out too high?
You've got three options: source cheaper ingredients, modify the recipe with less expensive components, or accept higher food cost to stay competitive. Never go below cost price though.
Should I include trimming loss in my calculation?
Absolutely. Calculate using actual price per kilo after waste. If you pay €20/kg for whole fish but lose 40% to trimming, your fillet actually costs €33.33/kg.
How do I handle dishes that require long preparation times?
Factor in labor costs beyond just ingredients. A dish with 30% food cost but 45 minutes prep time might be less profitable than one with 35% food cost and 10 minutes prep.
📚 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
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.
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