Price list and a cost sheet - hospitality 2026

Quick answer

Think of a price list as your restaurant's storefront window - it's what customers see. A cost sheet is like your behind-the-scenes ledger showing what each dish actually costs to make. Most restaurant owners display beautiful prices but have zero clue about their true dish costs.

Think of a price list as your restaurant's storefront window - it's what customers see. A cost sheet is like your behind-the-scenes ledger showing what each dish actually costs to make. Most restaurant owners display beautiful prices but have zero clue about their true dish costs.

What is a price list?

Your price list is the customer-facing menu with selling prices. These prices include VAT and often get set based on gut instinct or competitor pricing. It's the final number guests pay at checkout.

? Example price list:

Steak: €32.00
Salmon: €28.50
Pasta carbonara: €18.50
Caesar salad: €16.00

These are the prices guests pay, including 9% VAT.

What is a cost sheet?

A cost sheet breaks down every ingredient cost per dish. It tracks exact quantities, current prices, and portion expenses - giving you the real production cost.

? Example cost sheet steak:

Steak 250g: €8.50
Potatoes 200g: €0.80
Vegetables 150g: €1.20
Butter/oil: €0.40
Spices/salt: €0.10

Total cost: €11.00

The difference in practice

Price lists alone leave you guessing about profitability. But pair them with cost sheets and you'll instantly see which dishes drain your profits. From analyzing actual purchasing data across different restaurant types, dishes with unclear costing often run 40-60% higher food costs than expected.

? Steak comparison:

Price list: €32.00 (incl. VAT)

Cost sheet: €11.00 (ingredients)

Selling price excl. VAT: €29.36

Food cost: (€11.00 / €29.36) × 100 = 37.5%

⚠️ Note:

A food cost of 37.5% is high. Many restaurants keep it under 33%. This dish doesn't generate enough profit.

Why both sheets are crucial

Operating with just a price list means you're running blind. You can't identify profit winners versus money losers without proper cost tracking.

Smart pricing decisions: Know your minimum viable price points
Dish profitability ranking: Push your biggest money makers
Supplier negotiations: Understand exactly how price hikes affect margins
Menu optimization: Feature high-margin items prominently

How do you create a cost sheet?

List every single ingredient with precise quantities and current prices per portion. Don't skip the small stuff - oil, spices, and garnishes add up fast.

⚠️ Note:

Don't forget to factor in trimming loss. A whole salmon at €18/kg often costs €32/kg after filleting.

Digital vs manual

Excel cost sheets work initially but become nightmares quickly. Every supplier price change means manually updating dozens of dishes - and you'll miss some.

Food cost calculators automatically recalculate dish costs when ingredient prices change. Tools like KitchenNmbrs update all affected recipes instantly with one price adjustment.

How do you create a cost sheet? (step by step)

Gather all ingredient prices

Note the purchase price per kilo or unit for each ingredient. Check your latest supplier invoices for current prices.

Calculate costs per portion

For each dish, list all ingredients with exact grams. Don't forget small items like oil, spices, and garnish.

Compare with selling price

Divide the total ingredient costs by your selling price excluding VAT. This shows your food cost percentage per dish.

✨ Pro tip

Calculate food costs for your 3 most expensive dishes every 2 weeks. High-ticket items with bloated costs can silently destroy your margins even with decent overall sales volume.

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

Do I need to create a cost sheet for every dish?

Focus on your 10 best-selling dishes first since they drive most of your profit. You can gradually add other menu items once you've got the heavy hitters sorted.

How often should I update my cost sheet?

Review ingredient prices monthly minimum. Suppliers adjust prices constantly, and those small increases compound quickly across your entire menu.

What if my food cost is too high?

You've got three moves: increase selling price, reduce portion size, or substitute cheaper ingredients. A modest 5-10% price bump usually works better than compromising quality.

Can I create a cost sheet in Excel?

Excel works for basic tracking but becomes unmanageable with frequent price changes. You'll spend more time updating spreadsheets than cooking.

Should I include VAT in my cost sheet?

Never include VAT in cost calculations. Your ingredient costs are VAT-free, so always use selling prices excluding VAT for accurate food cost percentages.

How do I handle seasonal ingredient price fluctuations?

Track your cost sheets monthly and adjust menu prices quarterly. Some restaurants create seasonal menus to work around major price swings in key ingredients.

kennisbank.ingredients_in_article

Salmon kennisbank.ingredient_card_meta Butter 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

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

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.

8 years kitchen manager at 1NUL8 Group Rotterdam

Expertise: food cost management HACCP kitchen management restaurant operations food safety compliance

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