How do Irish kitchens work out food cost per dish?
Food cost is the cost of a portion’s ingredients, divided by the selling price without VAT. Below is the formula and a complete example, with illustrative figures in euro.
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 the lines.
- Add technical loss from cleaning, trimming and cooking, measured in your own kitchen.
- Take VAT off the menu price at the rate that applies to the dish.
- Food cost % = production cost ÷ net price × 100, tracked against a target you set for each category.
A complete example: one portion of spaghetti carbonara
Recipe card with net 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 |
| Final cost (incl. 5% technical loss) | 250 g | — | €2.92 |
The calculation, step by step
The raw materials add up to €2.78; with 5% technical loss, the production cost is €2.92.
The menu price is €15.00 including VAT. The net price, with VAT removed at the applicable rate, is €13.50 in this example.
Food cost = 2.92 ÷ 13.50 × 100 = 21.6%.
Watch the yield
Beef tenderloin at €28.00/kg with 780 g usable per kilo costs €35.90/kg on the plate (28.00 ÷ 0.78).
Using the invoice price instead of the net cost understates the meat cost by about 22%.
What the law and the rules say
- Food and alcoholic drinks can carry different VAT rates, so work out net prices for each category with your accountant.
- The recipe card supports the declaration of the 14 major allergens (EU Regulation 1169/2011, Article 44).
- Menu prices must be clear. Check with your adviser how VAT and any service charge are shown.
Common mistakes
- Dividing by 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 add a real share of the cost.
- Looking only at the percentage and ignoring how much each portion leaves you in euro.
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 shown for each dish, next to the reports by dish.