Food cost in Australia: how to cost a dish from its recipe card
Food cost is the cost of the ingredients in a portion, divided by its selling price excluding GST. It comes from the recipe card, not from memory or the last invoice. This guide shows the formula, a worked example in AUD and the mistakes that hide your real costs.
The formula, in short
- List every ingredient at its net weight, as it reaches the plate.
- Divide the purchase price by the unit of measure and multiply by the weight on the card.
- Add technical loss from cleaning, trimming and cooking.
- Add up all the lines. The total is the production cost of the portion.
- Divide by the price excluding GST: food cost % = cost ÷ price ex GST × 100.
A worked recipe card: carbonara, one portion
Recipe card with weights, purchase prices and plated cost (illustrative AUD figures)
| Ingredient | Net weight | Purchase price | Plated cost |
|---|---|---|---|
| Spaghetti | 120 g | $9.00/kg | $1.08 |
| Guanciale | 60 g | $45.00/kg | $2.70 |
| Egg yolks (2) | 40 g | $0.55 each | $1.10 |
| Pecorino | 30 g | $90.00/kg | $2.70 |
| Pepper, salt, oil | — | — | $0.25 |
| Total raw materials | 250 g | — | $7.83 |
| Final cost (incl. 5% technical loss) | — | — | $8.22 |
What the example tells you
The menu price is $42.00 including GST. At the 10% GST rate, the price excluding GST is 42.00 ÷ 1.10 = $38.18.
Food cost = 8.22 ÷ 38.18 = 21.5%, so $8.22 of every $38.18 ex GST goes on ingredients.
21.5% is a sound result for pasta. Above 35%, you would choose between a higher price, a smaller portion or a new supplier for the costliest ingredient. Here, pecorino and guanciale make up 66% of the cost.
Yield matters more than the invoice price
Example: you buy beef tenderloin at $120/kg. After trimming, 780 g per kilo is usable, a 78% yield.
The real cost on the plate is 120 ÷ 0.78 = $153.85/kg. A recipe card that ignores yield understates meat cost by almost 22%.
Rule of thumb: for meat, fish and root vegetables, record the yield you measure in your own kitchen.
Table: rough food cost ranges by category
Rough food cost ranges across the categories of a menu
| Category | Rough range | What drives the result |
|---|---|---|
| Alcoholic drinks | 18–24% | Pour size and discipline at the bar |
| Coffee and hot drinks | 12–20% | The milk and the cup, not the coffee |
| Pasta and pizza | 20–28% | Weighing portions, not estimating them |
| Meat and fish dishes | 30–40% | Trim and cooking yield |
| Soups and sides | 15–22% | They balance the menu average |
| House desserts | 20–28% | Labour, which is often left out |
What the rules say
- The recipe card is your internal record of ingredients, and it underpins allergen information for food that is not prepacked.
- Allergen information for non-prepacked food is regulated by state and territory food authorities under the Food Standards Code.
- Menu prices and portion sizes must be clear to customers. Check the price display rules with your accountant.
- Restaurant meals are generally taxable at 10% GST, so food cost is measured against the price excluding GST.
- Any recipe change that alters an allergen needs an immediate update to the menu shown to customers.
Common mistakes
- Calculating against the GST-inclusive price, which understates food cost by about 9%.
- Using gross invoice weight instead of net weight on the plate.
- Forgetting the side, the sauce and the packaging, which can add 15–20% to the cost.
- Updating the recipe card once a year when purchase prices change monthly.
- Looking only at the percentage, not at the dollars left from each portion sold, which is what counts at month end.
How 4restaurants.net helps
- Every dish has a recipe card with weights, from which the production cost is calculated.
- Net weights on the card let trimming enter the calculation correctly.
- The QR digital menu is linked to the recipe cards with weights, in the same application.
- Food cost is shown for each dish, next to the reports by dish.