Know the full cost of the plate
List every ingredient in a standard portion, including garnishes, sauces, and cooking oil. Convert package prices to the quantity used, then add each ingredient cost to find the plate cost.
Use a target as a starting point
Divide the portion cost by your target food cost percentage expressed as a decimal. A $4.50 plate at a 30% target suggests a $15.00 starting price. This is a guide, not a substitute for understanding your market and operating costs.
Look beyond the percentage
Contribution margin—the selling price minus variable item cost—shows how many dollars an item contributes to labor and overhead. Consider popularity, preparation time, competitors, and guest perception before setting the final price.
- ✓Revisit prices when ingredient costs change.
- ✓Compare contribution margin and popularity together.
- ✓Round thoughtfully and test changes with your team.
This guide is for educational purposes and is not financial or legal advice.
