How do I calculate the food cost of a dish?
Food cost is the cost of the ingredients in a portion divided by the selling price excluding VAT. It is calculated from the recipe card, at net weight, and expressed as a percentage. Below: the formula and a complete example with real figures.
Short answer
- List every ingredient at its net weight, exactly as it lands on the plate.
- Multiply each weight by the purchase price per unit and add up all the lines.
- Add the technical loss from cleaning, trimming and cooking — typically 3–8%.
- Strip VAT from the menu price: at the 11% restaurant-services rate, divide the price by 1.11.
- Food cost % = production cost ÷ net price × 100. A result of 25–35% is normal in restaurants.
A complete example: one portion of carbonara
Recipe card with net weights, purchase prices and plated cost
| Ingredient | Net weight | Purchase price | Plated cost |
|---|---|---|---|
| Spaghetti | 120 g | 9.00 RON/kg | 1.08 RON |
| Guanciale | 60 g | 45.00 RON/kg | 2.70 RON |
| Egg yolks (2) | 40 g | 0.55 RON each | 1.10 RON |
| Pecorino | 30 g | 90.00 RON/kg | 2.70 RON |
| Pepper, salt, oil | — | — | 0.25 RON |
| Final cost (incl. 5% technical loss) | 250 g | — | 8.22 RON |
The calculation, step by step
The raw materials add up to 7.83 RON. With 5% technical loss, the production cost of the portion is 8.22 RON.
The menu price is 42.00 RON including VAT. At the 11% rate, the net price is 42.00 ÷ 1.11 = 37.84 RON.
Food cost = 8.22 ÷ 37.84 × 100 = 21.7%. That means 8.22 RON of every 37.84 RON net goes on ingredients.
Watch the yield
Example: you buy beef tenderloin at 120 RON/kg, but after trimming only 780 g per kilo remain usable. The real cost of the meat on the plate is 120 ÷ 0.78 = 153.85 RON/kg.
A recipe card that uses the invoice price instead of the net cost understates the meat cost by almost 22%.
What the law says
- Restaurant services carry the reduced 11% VAT rate, so food cost is always measured against the net price (rate applicable since August 2025).
- The recipe card underpins the declaration of the 14 allergens for non-prepacked food (EU Reg. 1169/2011, art. 44).
- The price and portion size must be fully shown on the menu; ANPC checks that consumers are properly informed (OG 21/1992).
Common mistakes
- Dividing by the VAT-inclusive price — the result comes out about 10% lower than reality.
- Using the gross weight from the supplier invoice instead of the net weight on the plate.
- Forgetting the side, the sauce and the packaging, which often add 15–20% to the cost.
- Looking only at the percentage and ignoring how many lei remain from each portion sold.
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, in the same application as the reports by dish.