Making pho broth is like building a house - you see the beautiful result, but forget about the foundation costs. Most Vietnamese restaurants underestimate what goes into a broth that simmers for 12-18 hours. Here's how to calculate the real cost price, including every hidden expense.
The hidden costs of pho broth
Your broth bubbles away for 12-18 hours straight. That's gas burning, water evaporating, and someone checking on it - all costs that need factoring in. Most Vietnamese spots only count the beef bones and call it done.
⚠️ Heads up:
Don't calculate with just the bones. Gas, water, spices, and labor bump your cost price up by 40-60%.
Broth ingredients and costs
For 10 liters of pho broth you'll need:
- Beef bones: 3 kg at €4.50/kg = €13.50
- Beef (for the soup): 1 kg at €18/kg = €18.00
- Onion (charred): 500g at €1.20/kg = €0.60
- Ginger: 200g at €8/kg = €1.60
- Pho spices (star anise, cinnamon, cardamom): €2.50
- Fish sauce: 100ml at €12/liter = €1.20
- Rock sugar: 50g at €2/kg = €0.10
💡 Example broth costs:
For 10 liters of broth:
- Ingredients: €37.50
- Gas (18 hours): €4.20
- Water: €0.30
- Labor (2 hours): €32.00
Total: €74.00 for 10 liters = €7.40 per liter
Factor in gas and energy costs
Eighteen hours of gentle simmering runs you about €0.23 per hour in gas. That's €4.20 for each batch of broth. Restaurants constantly forget this expense.
Labor and prep time
Pho broth demands real time investment:
- Prep work: 1 hour (blanching bones, charring onions)
- Checking while simmering: 15 minutes per day
- Finishing and straining: 45 minutes
Total: 2 hours of labor at €16/hour = €32.00 labor costs per batch. From years of working in professional kitchens, I've seen too many places skip this calculation and wonder why their margins are thin.
Calculate cost price per bowl of pho
A bowl of pho contains approximately:
- Broth: 400ml = €2.96
- Rice noodles: 100g at €3/kg = €0.30
- Beef (raw): 80g at €22/kg = €1.76
- Onion (raw): 20g at €1.20/kg = €0.02
- Herbs (cilantro, basil): €0.25
- Lime: 1/4 piece = €0.15
💡 Cost price per bowl:
Pho Bo (large bowl):
- Broth: €2.96
- Noodles: €0.30
- Meat: €1.76
- Garnish: €0.42
Total cost price: €5.44
Check your food cost percentage
If you sell pho for €16.50 (incl. 9% VAT):
- Selling price excl. VAT: €16.50 / 1.09 = €15.14
- Cost price: €5.44
- Food cost: (€5.44 / €15.14) × 100 = 35.9%
That's running high. Most Vietnamese restaurants aim for 30-33% food cost on pho.
⚠️ Heads up:
Don't forget the 21% VAT on drinks often ordered with pho. Always calculate food cost excluding VAT.
Optimize broth yield
From 3 kg of bones you'll get about 8-9 liters of usable broth (thanks to evaporation). That means:
- Theoretical: 10 liters
- Actual: 8.5 liters due to evaporation
- Yield: 85%
So calculate €8.71 per liter instead of €7.40.
💡 Yield calculation:
Broth reduction:
- Start: 10 liters
- After 18 hours: 8.5 liters
- Loss: 15%
Actual cost price: €74.00 / 8.5L = €8.71/L
Different pho varieties
Cost prices per variety:
- Pho Tai (raw beef): €5.44
- Pho Bo Vien (meatballs): €4.20
- Pho Ga (chicken): €3.80
- Pho Chay (vegetarian): €2.10
The broth stays the same, only the protein changes.
How do you calculate the cost price of pho? (step by step)
Calculate broth costs per liter
Add up all ingredients (bones, meat, spices), plus gas (€4.20 for 18 hours), water (€0.30), and labor (2 hours at €16). Divide by actual yield (8.5 liters instead of 10 liters).
Calculate costs per bowl
A bowl of pho uses 400ml broth, 100g noodles, 80g meat, and garnish. Multiply each quantity by the per-kilo price and add up.
Check your food cost percentage
Divide your cost price by your selling price excl. VAT and multiply by 100. For pho, aim for 30-33% food cost.
✨ Pro tip
Track your actual broth yield over 3 batches to get precise costs - most kitchens lose 12-18% to evaporation, not the standard 15%. Measure after straining to know your real cost per liter.
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 labor in my pho cost price?
Absolutely, especially with an 18-hour simmer time. Calculate at least 2 hours of direct labor for prep and finishing. That's €32 in extra costs per batch that most places ignore.
How often should I recalculate my broth cost price?
Check your ingredient prices monthly for bones and beef - they can swing 10-20%. Gas prices change regularly too. I'd review costs every 4-6 weeks minimum.
Why is my pho food cost higher than other dishes?
Pho has tons of hidden costs: long cooking time, gas, labor, and pricey beef bones. A 35% food cost is normal, while stir-fry dishes often hit 25-28%. That's just the nature of the dish.
📚 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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