📝 Basic knowledge and formulas · ⏱️ 3 min read

What is the cost price per dish in a restaurant?

📝 KitchenNmbrs — · updated 07 Apr 2026

Quick answer
Food costs account for 60% of restaurant failures within the first year. Most owners think they know what each dish costs, but they're usually off by 15-30%. Here's how to calculate the real numbers that determine your survival.

Food costs account for 60% of restaurant failures within the first year. Most owners think they know what each dish costs, but they're usually off by 15-30%. Here's how to calculate the real numbers that determine your survival.

What is cost price per dish?

The cost price per dish is the total value of all ingredients that go on one plate. This means literally everything:

  • Main ingredients (meat, fish, vegetables)
  • Garnishes and side dishes
  • Sauces and dressings
  • Oil, butter, herbs
  • Bread, decoration, everything that leaves the plate

Many entrepreneurs forget the small things. A pat of butter here, some parsley there. Seems insignificant, but it adds up fast.

? Example:

Steak with fries and vegetables:

  • Steak 200g: €4.80
  • Fries 150g: €0.45
  • Vegetables: €1.20
  • Butter, herbs, oil: €0.35
  • Sauce: €0.40

Total cost price: €7.20

The formula for cost price calculation

The basic formula is straightforward, but you must count every ingredient:

Cost price = Σ (Quantity per portion × Purchase price per unit)

Where Σ (sigma) means: add everything together. For each ingredient you calculate how much you use times the price, then add it all up.

? Example calculation:

Pasta carbonara:

  • Pasta 100g × €0.024/g = €2.40
  • Bacon 40g × €0.035/g = €1.40
  • Egg 1 piece × €0.25 = €0.25
  • Parmesan 15g × €0.045/g = €0.68
  • Cream 50ml × €0.008/ml = €0.40
  • Parsley, pepper, oil = €0.12

Total cost price: €5.25

Including cutting loss and waste

Here's something most kitchen managers discover too late: not everything you buy ends up on the plate. Fish has heads and bones, meat has fat and tendons, vegetables have peels.

Actual cost price = Purchase price / (Yield % / 100)

⚠️ Watch out:

With cutting loss your product becomes more expensive, not cheaper! You have less usable weight, so the price per kilo increases.

? Example cutting loss:

Whole salmon purchase:

  • Purchase price: €18.00/kg
  • Cutting loss: 45% (head, bones, skin)
  • Yield: 55%

Actual fillet price: €18.00 / 0.55 = €32.73/kg

From cost price to selling price

Once you know the cost price, you can determine what you must charge at minimum to stay profitable. Most restaurants maintain a food cost between 28% and 35%.

Minimum selling price excl. VAT = Cost price / (Desired food cost % / 100)

Then multiply by 1.09 for the price including 9% VAT on your menu.

? Example pricing:

Cost price pasta carbonara: €5.25

Desired food cost: 30%

  • Minimum excl. VAT: €5.25 / 0.30 = €17.50
  • Menu price: €17.50 × 1.09 = €19.08

Round to: €19.50

Tracking cost price in practice

The theory is clear, but in practice prices change constantly. Suppliers raise rates, you switch suppliers, seasonal products become more expensive or cheaper.

That's why you need to update your cost prices regularly:

  • Review your top dishes monthly
  • Update immediately after supplier price increases
  • Monitor seasonal influences on fresh products
  • Verify portion sizes match your calculations

Food cost calculators help with this by automatically recalculating when you adjust ingredient prices. You'll immediately see the impact on all your dishes.

⚠️ Watch out:

Calculating cost price isn't one-time work. Prices change constantly, so you need to update your calculations regularly to stay accurate.

Related articles

How do you calculate cost price per dish? (step by step)

1

Collect all ingredients and quantities

Make a list of literally everything that goes on the plate. Don't forget the garnishes, sauces, herbs and oil. Weigh or measure the exact quantity per portion.

2

Look up all purchase prices

Check your invoices for current purchase prices per kilo, liter or piece. Convert to the unit you use (for example from €18/kg to €0.018/gram).

3

Calculate costs per ingredient

Multiply the quantity per portion by the purchase price per unit. Do this for each ingredient separately.

4

Add everything together

Sum all individual ingredient costs into one total amount. This is your cost price per dish, excluding cutting loss.

5

Correct for cutting loss and waste

If you have cutting loss (with fish, meat, vegetables), divide your cost price by the yield percentage. With 20% loss you divide by 0.80.

✨ Pro tip

Weigh your actual plated portions during peak hours for one week. You'll discover your real food costs are typically 12-18% higher than calculated due to generous portioning under pressure.

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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 cost price calculation?
No, always calculate cost price excluding VAT. You pass VAT through to the tax authorities, it's not a real cost item for your business.
What if my chef uses different portion sizes than I calculate?
Then your cost price doesn't match reality. Check regularly if actual portions match your calculation, and train your kitchen team on consistency. This is often the biggest gap between theory and practice.
How do I handle recipe variations during busy service?
Create a 'flexibility buffer' of 5-8% in your cost calculations for minor substitutions. Document any major changes and recalculate immediately.

kennisbank.ingredients_in_article

Butter kennisbank.ingredient_card_meta Parsley kennisbank.ingredient_card_meta Parmesan kennisbank.ingredient_card_meta Salmon 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

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.

JS

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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