Menu Pricing Calculator
Free restaurant menu pricing calculator.
How to Use This Calculator
Formula:
Adjusted Food Cost = Raw Ingredient Cost × (1 + Waste %); Recommended Menu Price = Adjusted Food Cost ÷ Target Food Cost %
- On the 'Single Item' tab, enter your exact Raw ingredient cost per serving ($) including proteins, starches, sauces, garnishes, cooking oil, and takeout packaging.
- Set a realistic Plate waste / spoilage buffer (%)—typically 8% to 12% for full-service kitchens—and enter your Target food cost percentage (25%–35% for most concepts).
- Optionally add Direct labor cost per dish (prep/line minutes × hourly kitchen wage) and Overhead allocation per dish (monthly rent & utilities ÷ monthly covers), then pick your Restaurant type.
- Review your quarter-rounded Recommended Menu Price, Actual food cost %, net Profit per cover after labor/overhead, and benchmark warning status.
- Switch to the 'Menu Builder' tab and click '+ Add menu item' to enter ingredient costs, target food cost %, and daily covers across your full menu to calculate blended daily gross profit.
Frequently Asked Questions
Theoretical (ideal) food cost is what your POS sales mix says you should have spent based on standardized recipe cards—say 28.5%. Actual food cost comes from physical weekly inventory counts: (Beginning Inventory + Purchases − Ending Inventory) ÷ Total Food Sales. A variance wider than 1.5% to 2.5% between theoretical and actual food cost signals unmeasured line over-portioning, kitchen waste, unrecorded staff meals, or vendor short-weights.
Prime cost combines your two largest controllable expenses: Total Cost of Goods Sold (food, non-alcoholic beverages, alcohol, and paper goods) plus Total Labor (salaried managers, hourly kitchen/server wages, payroll taxes, and benefits). Because fixed occupancy rent, utilities, credit card processing, insurance, and repairs typically absorb 25% to 30% of revenue, keeping prime cost at 55%–60% is essential to preserve a 10%–15% net profit margin.
Best-in-class operators update raw invoice prices inside recipe-costing sheets monthly (and weekly for volatile proteins like beef, eggs, poultry, and fresh catch) while reprinting or adjusting menu prices quarterly or semi-annually. Using digital QR/POS menus or seasonal chalkboard specials allows you to re-price commodity spikes immediately without absorbing three months of margin compression.
Sum all non-food, non-labor monthly fixed operating expenses—including base rent, CAM charges, gas/electric/water utilities, POS software, linen service, insurance, and accounting—and divide by your average monthly cover (entree) count. For example, if monthly fixed overhead is $10,500 and you serve 6,000 covers per month (200 covers/day), allocate $1.75 in overhead per dish.
No, beverage programs carry dramatically lower pour costs that intentionally subsidize tighter kitchen margins. Draft beer typically targets 18%–22% pour cost, bottled beer and by-the-glass wine target 24%–28%, craft cocktails target 16%–20%, and fountain soda, iced tea, and drip coffee run just 5%–12% cost—making high beverage attachment rates critical to overall check profitability.
Third-party delivery marketplaces charge 15% to 30% commission on the gross menu price. If a $20.00 burger platter has $6.00 food cost, $5.00 labor, and $5.00 overhead ($4.00 dine-in profit), a 25% ($5.00) app commission puts you $1.00 underwater on every single order. Most profitable kitchens mark up third-party delivery menus by 20%–25% and trim low-margin proteins from delivery listings.