The food cost formula
Menu price = plate cost ÷ target food cost %. A dish that costs $4.20 to make, at a 30% target, should sell for $14. The calculator rounds up to the next quarter so prices look clean on the menu.
Plate cost is every ingredient in one serving, including garnish, sauce and the side, at what you actually pay your suppliers.
Choosing a target food cost
Many restaurants plan food cost somewhere around 25% to 35% of the menu price, but the right target depends on your concept, your labor costs and your rent. Drinks usually carry a lower cost percentage than food. Treat the target as your own decision and check it against your real costs each month.
The formulas behind it
Every result cell is a plain spreadsheet formula, so you can check the math or rebuild it yourself.
| Cell | Result | Formula |
|---|---|---|
| B7 | Price at your target | =B2/B3% |
| B8 | Rounded up to the next $0.25 | =ROUNDUP(B7*4,0)/4 |
| B9 | Gross profit per plate | =B8-B2 |
| B10 | Food cost at your current price | =B2/B4 |
| B11 | Gross profit at your current price | =B4-B2 |