How do you calculate food cost for a dish in Australia?
Food cost is the ingredients in one portion, divided by its selling price excluding GST, worked out from the recipe card at net weight. A full example in AUD follows.
Short answer
- List each ingredient at its net weight, as it reaches the plate.
- Multiply each weight by its unit price and add up the lines.
- Add technical loss from cleaning, trimming and cooking, often 3–8%.
- Remove GST: at 10%, divide the menu price by 1.10.
- Food cost % = production cost ÷ price excluding GST × 100. A result of 25–35% is typical.
A full example: one portion of carbonara
Recipe card with net weights and purchase prices (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 |
| Final cost (incl. 5% technical loss) | 250 g | — | $8.22 |
The calculation, step by step
Raw materials total $7.83; with 5% technical loss, the portion costs $8.22.
Menu price $42.00 including GST, so 42.00 ÷ 1.10 = $38.18 excluding GST.
Food cost = 8.22 ÷ 38.18 × 100 = 21.5%: $8.22 of every $38.18 goes on ingredients.
Watch the yield
Example: beef tenderloin at $120/kg, with 780 g per kilo usable after trimming. The real cost on the plate is 120 ÷ 0.78 = $153.85/kg.
Using the invoice price instead of net cost understates meat cost by almost 22%.
What the rules say
- Restaurant meals are generally taxable at 10% GST, so measure food cost ex GST.
- The recipe card supports allergen information for non-prepacked food, regulated by state and territory authorities.
- Show the price and portion size clearly on the menu. Check price display rules with your accountant.
Common mistakes
- Dividing by the GST-inclusive price, which understates the result by about 9%.
- Using gross invoice weight instead of net weight on the plate.
- Forgetting the garnish, sauce and packaging, which can add 15–20% to the cost.
- Looking only at the percentage, not the dollars left per portion.
How 4restaurants.net helps
- Production cost is calculated from the recipe card, using your own weights.
- Net weights on the recipe card let trimming enter the cost correctly.
- Food cost is visible for each dish, alongside the reports by dish.