Food cost for Irish kitchens: how to cost a dish correctly
Food cost is the cost of a portion’s ingredients, divided by its selling price without VAT. It comes from the recipe card, not from intuition. This guide shows the calculation, with illustrative figures in euro.
The formula, in short
- List every ingredient at its net weight, as it lands on the plate.
- Divide the purchase price by the unit of measure, then multiply by the weight on the recipe card.
- Add technical loss from cleaning, trimming and cooking.
- Add up all the lines. The total is the production cost of the portion.
- Food cost % = production cost ÷ net price (without VAT) × 100.
A complete recipe card: spaghetti carbonara, one portion
Recipe card with weights, purchase prices and plated cost (illustrative figures)
| Ingredient | Net weight | Purchase price | Plated cost |
|---|---|---|---|
| Spaghetti | 120 g | €2.40/kg | €0.29 |
| Pancetta | 60 g | €18.00/kg | €1.08 |
| Egg yolks (2) | 40 g | €0.30 each | €0.60 |
| Pecorino | 30 g | €22.00/kg | €0.66 |
| Pepper, salt, oil | — | — | €0.15 |
| Total raw materials | 250 g | — | €2.78 |
| Final cost (incl. 5% technical loss) | — | — | €2.92 |
What the example tells you
The menu price is €15.00 including VAT. Net of VAT at the rate that applies, the example uses €13.50.
Food cost = 2.92 ÷ 13.50 = 21.6%, so €2.92 of every €13.50 net goes on ingredients.
Compare the result with your own target. If it rises well above that, you can raise the price, reduce the portion or change supplier. Here, pancetta and pecorino make up about 63% of the raw-material cost.
Yield matters more than the invoice price
Example: beef tenderloin at €28.00/kg, with 780 g per kilo usable after trimming, a yield of 78%.
The real cost on the plate is 28.00 ÷ 0.78 = €35.90/kg. A recipe card that ignores yield understates the meat cost by about 22%.
For meat, fish and root vegetables, record the yield you measure in your own kitchen.
Table: your target food cost, by category
Common categories on a menu, and what drives food cost in each
| Category | Your target | What drives the result |
|---|---|---|
| Alcoholic drinks | Set from your own sales | Pour size and discipline behind the bar |
| Coffee and hot drinks | Set from your own sales | The milk and the cup, more than the coffee |
| Pasta and pizza | Set from your own sales | Weighing portions instead of estimating them |
| Meat and fish dishes | Set from your own sales | Trim and cooking yield |
| Soups and sides | Set from your own sales | They balance the average across the menu |
| House desserts | Set from your own sales | Labour, which is almost always left out |
What the law and the rules say
- The recipe card is your internal record, the basis for the ingredient list and the allergen information.
- The 14 major allergens must be made available for non-prepacked food (EU Regulation 1169/2011, Article 44).
- Menu prices must be clear. Check with your adviser how VAT and any service charge are shown.
- Food and alcoholic drinks can carry different VAT rates, so work out net prices for each category with your accountant.
- Any recipe change that alters the allergens means the guest’s menu must be updated straight away.
Common mistakes
- Working out food cost against the VAT-inclusive price, which makes the result look lower than it is.
- Using the gross invoice weight instead of the net weight on the plate.
- Forgetting the garnish, sauce and packaging, which can add a real share of the cost.
- Updating the recipe card once a year, although purchase prices change often.
- Looking only at the percentage and ignoring how much each portion leaves you in euro.
How 4restaurants.net helps
- Every dish has a recipe card with weights, from which production cost is worked out.
- Net weights let trimming enter the calculation correctly.
- The QR digital menu is linked to the recipe cards in the same application.
- Food cost is shown for each dish, next to the reports by dish.