How do I work out food cost for a dish?
Food cost is the ingredient cost of one portion divided by its selling price before tax. Calculate it from the recipe card at net weight and express it as a percentage. Below are the formula and a full example with illustrative figures.
Short answer
- List each ingredient at its net weight, as it reaches the plate.
- Multiply each weight by the purchase price per unit and add up all the lines.
- Add the loss from cleaning, trimming and cooking, typically 3–8%.
- Remove tax from the menu price: at an illustrative 10% tax rate, divide the price by 1.10. Rates differ by country.
- Food cost % = production cost ÷ net price × 100. A result of 25–35% is normal in restaurants.
A complete example: one portion of carbonara pasta
Recipe card with net weights, purchase prices and plated cost (illustrative figures)
| Ingredient | Net weight | Purchase price | Plated cost |
|---|---|---|---|
| Spaghetti | 120 g | €2.00/kg | €0.24 |
| Guanciale | 60 g | €14.00/kg | €0.84 |
| Egg yolks (2) | 40 g | €0.25 each | €0.50 |
| Pecorino | 30 g | €20.00/kg | €0.60 |
| Pepper, salt, oil | — | — | €0.22 |
| Final cost (with 5% trim and cooking loss) | 250 g | — | €2.52 |
The calculation, step by step
Raw materials total €2.40; adding 5% loss brings the cost of the plate to €2.52. All prices are illustrative.
The menu price is €13.20 including tax. At an illustrative 10% tax rate, the net price is €13.20 ÷ 1.10 = €12.00. Rates differ by country.
Food cost = €2.52 ÷ €12.00 × 100 = 21.0%, so €2.52 of every €12.00 of net sales goes on ingredients.
Watch the yield
Illustrative example: beef fillet bought at €30.00 per kilo, with only 780 g per kilo usable after trimming. The real cost is €30.00 ÷ 0.78 = €38.46 per kilo.
Costing from the invoice price instead of the usable cost understates the meat cost by about 22%.
Rules to check where you operate
- Check how tax is shown on menu prices where you operate; food cost is always measured against the price net of tax.
- Recipe cards underpin allergen disclosure for food served unpackaged, so keep them current and confirm the local requirements with an adviser.
- Prices and portion sizes should be shown clearly on the menu; confirm the local consumer-information rules with an adviser.
Common mistakes
- Dividing by the tax-inclusive price, which makes the result about 9% too low.
- Using the gross invoice weight instead of the net weight on the plate.
- Forgetting the garnish, sauce and packaging, which often add 15–20% to the cost.
- Looking only at the percentage and ignoring the money each sold portion leaves.
How 4restaurants.net helps
- Production cost is calculated from the recipe card, using your own quantities.
- Net weights on the recipe card let trimming loss enter the cost correctly.
- Food cost shows on each dish, in the same application as the product reports.