Most restaurant owners admit they've priced at least one menu item by gut feeling alone. You glance at competitors' prices, tack on a few euros, and cross your fingers for profit. Pricing any new burger without calculating actual food costs is financial roulette.
Gather all ingredients and costs
Create a complete list of every single component that goes in and with your burger. Include everything: the bun, every condiment, even that tiny sprinkle of seasoning.
💡 Example: Classic Cheeseburger
- Bun: €0.65
- Beef (150g): €2.40
- Cheese (1 slice): €0.35
- Lettuce, tomato, onion: €0.45
- Sauces and butter: €0.25
- Fries (200g): €0.60
Total ingredient costs: €4.70
Calculate your target food cost percentage
For burgers, you want food costs hitting 25% to 32% of your selling price. That means ingredients should never eat up more than one-third of what customers pay.
⚠️ Note:
Always work with prices excluding VAT. Your menu shows prices with 9% VAT included.
Use this formula for your minimum selling price:
Minimum price excl. VAT = Ingredient costs ÷ (Food cost % ÷ 100)
💡 Example calculation:
Ingredient costs: €4.70
Target food cost: 30%
Minimum price excl. VAT: €4.70 ÷ 0.30 = €15.67
Menu price incl. VAT: €15.67 × 1.09 = €17.08
Research your competition and market position
Check what similar restaurants charge for comparable burgers. If your calculated price sits way above theirs, you've got decisions to make:
- Switch to less expensive ingredients
- Reduce portion sizes
- Position as premium and justify the higher cost
- Accept thinner margins
Launch, monitor, and adjust
Start with your calculated price and watch sales like a hawk. These patterns tell you everything:
- Strong sales? Your price hits the sweet spot
- Weak sales? Could be overpriced or poorly positioned on the menu
- Busy but unprofitable? Portion sizes might've grown too generous
One of the most common blind spots in kitchen management involves mistaking popular dishes for profitable ones. High sales mean nothing if your portions have slowly expanded beyond your original calculations.
💡 Example price adjustment:
Your €17.08 burger isn't moving. Competitors charge €15.50.
Option 1: Drop price to €15.50 → Food cost jumps to 33.1%
Option 2: Cut fries from 200g to 150g → Cost drops to €4.45 → Food cost stays at 28.7%
Track your numbers religiously
After launching, keep monitoring costs monthly. Suppliers bump prices, kitchen staff get heavy-handed with portions, and ingredient costs fluctuate constantly.
Monthly food cost checks catch problems before they kill profits. Digital tools can automate these calculations and alert you when costs drift too high.
How do you determine the price of a new burger? (step by step)
Calculate total ingredient costs
Make a list of all ingredients and add up the costs. Don't forget anything: bun, meat, vegetables, sauces, sides and garnishes.
Determine your desired food cost percentage
Choose a food cost between 25-32% for burgers. This percentage determines how much of your selling price goes to ingredients.
Calculate your minimum selling price
Divide your ingredient costs by your food cost percentage. Then multiply by 1.09 for the price including VAT on your menu.
Compare with the competition
Check what similar establishments charge. Is your price much higher? Then consider cheaper ingredients or smaller portions.
Test and monitor sales
Start with your calculated price and keep track of sales figures. Adjust based on demand and profitability.
✨ Pro tip
Monitor your actual food costs weekly for the first 8 weeks after launch. New menu items often suffer from portion drift as kitchen staff find their rhythm with prep and plating.
Calculate this yourself?
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 cost price calculation?
Never include VAT in your initial calculations. You typically purchase ingredients VAT-free, and food cost percentages are calculated excluding VAT. Only add VAT for the final menu price.
What if my calculated price is much higher than the competition?
You have three main options: source cheaper ingredients, reduce portion sizes, or accept lower margins. Focus on cuts that don't hurt the customer experience.
What food cost percentage is realistic for burgers?
Target 25% to 32% for most burger operations. Fast-casual chains often hit 20-25%, while sit-down restaurants with premium ingredients might reach 35%.
How often should I review my burger pricing?
Check food costs monthly at minimum. Supplier price increases and portion creep happen gradually but can devastate profits if left unchecked.
Should I factor waste into my cost calculations?
Absolutely add 2-5% for waste and spoilage. Expired meat, wilted produce, and prep scraps all cost money but never reach customers.
What about seasonal ingredient price swings?
Calculate using peak seasonal prices, not current costs. Tomatoes cost more in winter, beef prices fluctuate with supply, and planning for highs protects your margins year-round.
📚 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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