Your restaurant's selling price determines whether you make a profit or loss. Many restaurant owners guess what they can charge, but that's risky. In this article, you'll learn step-by-step how to calculate the optimal selling price based on your costs and desired profit.
Why the right selling price is crucial
Your selling price isn't what you hope to get, but what you minimally need to be profitable. Too low = loss. Too high = no customers. The art is in the balance.
⚠️ Heads up:
Many entrepreneurs forget to include their own salary. If you work 60 hours a week for €0 per hour, your restaurant might break even, but you earn nothing.
The 3 pillars of your selling price
Your selling price must cover 3 things:
- Food cost: Ingredients and beverages (25-35% of revenue)
- Fixed costs: Rent, energy, insurance, depreciation
- Variable costs: Staff, marketing, maintenance
Plus a profit margin for yourself. Otherwise you're working for nothing.
Step 1: Calculate your total costs per month
Make a list of all costs:
💡 Example costs bistro (50 seats):
- Rent: €4,500
- Staff (including yourself): €12,000
- Energy: €800
- Insurance: €300
- Marketing: €400
- Maintenance: €200
- Other costs: €600
Total fixed costs: €18,800/month
Don't forget your own salary! Calculate at least €15-20 per hour for your own time.
Step 2: Estimate your number of customers per month
Calculate realistically. Not your dream scenario, but what you actually expect:
💡 Example occupancy:
50 seats, open 6 days a week:
- Lunch: 20 customers/day × 6 days × 4 weeks = 480 customers
- Dinner: 35 customers/day × 6 days × 4 weeks = 840 customers
Total: 1,320 customers per month
Step 3: Calculate your break-even point
Divide your total costs by the number of customers:
Break-even per customer = Total costs ÷ Number of customers
💡 Break-even calculation:
€18,800 ÷ 1,320 customers = €14.24 per customer
This is your minimum average check to break even. Without profit.
Step 4: Add profit margin
You want to make a profit, of course. Calculate at least 15-25% profit margin on top of your break-even:
💡 Profit margin calculation:
- Break-even per customer: €14.24
- Desired profit margin: 20%
- Minimum average check: €14.24 × 1.20 = €17.09
You need to generate an average of €17.09 per customer for 20% profit.
Step 5: Translate to menu prices
Now you know your average check. Build your menu so you hit this average:
- Main courses: €18-25 (heart of your revenue)
- Starters: €8-12 (increase average check)
- Desserts: €6-9 (pure profit, low food cost)
- Beverages: €2.50-8 (high margin)
⚠️ Heads up:
Check if your prices match your target audience. An average check of €35 in a working-class neighborhood will be tough. Adjust your concept to your location.
Check your food cost percentage
Per dish, your food cost should stay between 25-35%. Higher = insufficient margin.
Food cost % = (Ingredient costs ÷ Selling price excl. VAT) × 100
💡 Food cost check:
Steak on menu: €24.00 incl. 9% VAT
- Selling price excl. VAT: €24.00 ÷ 1.09 = €22.02
- Ingredient costs: €7.50
- Food cost: (€7.50 ÷ €22.02) × 100 = 34.1%
This is acceptable (under 35%).
Monitor and adjust
Your selling price isn't set in stone. Check monthly:
- Do your cost estimates match reality?
- Are you hitting your target average check?
- Are your food costs still under control?
- Are suppliers raising their prices?
A system like KitchenNmbrs helps you automatically track your food cost per dish, so you quickly see when you need to adjust prices.
How do you calculate the optimal selling price? (step by step)
Inventory all monthly costs
Make a complete list of rent, staff (including yourself!), energy, insurance, marketing and other costs. Don't forget any cost item.
Calculate realistic customer flows
Estimate how many customers you expect per day, both lunch and dinner. Calculate with 6 days a week and 4 weeks a month for a monthly total.
Determine break-even per customer
Divide your total monthly costs by the number of expected customers. This is the minimum each customer must spend to break even.
Add profit margin (15-25%)
Multiply your break-even amount by 1.15 to 1.25 for a healthy profit margin. This becomes your minimum average check.
Build menu around average check
Set your menu prices so you hit the calculated average check. Check per dish that food cost stays under 35%.
✨ Pro tip
Check your 5 best-selling dishes every month on food cost percentage. If those stay under 35%, 80% of your profitability is on track.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
Should I include my own salary in the costs?
Yes, absolutely! Calculate at least €15-20 per hour for your own time. Otherwise you're working for free and your restaurant has no real profit.
What if my calculated prices seem too high for my neighborhood?
Then you need to adjust your concept. Cheaper ingredients, smaller portions, or a different type of cuisine. You can't sell below your cost price.
How often should I check my prices?
At least every 3 months. Check if your costs have increased, if you're hitting your target average check, and if suppliers have raised prices.
Can I charge different prices for lunch and dinner?
Yes, that's normal. Lunch is often cheaper, but then you need to run higher volume to cover your costs. Calculate both periods separately.
What if I'm not hitting my average check?
Then you have 3 options: raise prices, lower costs, or attract more customers. Usually a combination of all three is needed.
⚠️ EU Regulation 1169/2011 — Allergen Information — https://eur-lex.europa.eu/eli/reg/2011/1169/oj
The allergen information on this page is based on EU Regulation 1169/2011. Recipes and ingredients may vary by supplier. Always verify current allergen information with your supplier and communicate this correctly to your guests. KitchenNmbrs is not liable for allergic reactions.
In the UK, the FSA enforces allergen regulations under the Food Information Regulations 2014.
📚 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.
Know your numbers during an acquisition
During an acquisition, you want to know exactly what recipes cost and what the margins are. KitchenNmbrs documents everything — ready for due diligence. Start your free trial.
Start free trial →