Menu Pricing Calculator
Menu Pricing
Set profitable menu prices by calculating the ideal selling price based on raw ingredient costs, target food cost percentage, and desired profit margin.
Formula
Base Price = Raw Cost / (Target Food Cost % / 100); With Overhead = Base Price x (1 + Overhead %); Final Price = With Overhead / (1 - Desired Net Margin %)
Frequently Asked Questions
How should I price my menu items?
Start by calculating raw ingredient cost per portion, then divide by your target food cost percentage (typically 0.28 to 0.35). Add overhead and desired margin. Also consider competitor pricing and perceived value.
Should all menu items have the same food cost percentage?
No. Different categories have different norms. Appetizers and desserts often run 20 to 25 percent food cost, entrees 28 to 35 percent, and beverages 15 to 25 percent. Balance high and low cost items across the menu.
What is menu engineering?
Menu engineering analyzes each item by profitability and popularity. Items are classified as Stars (high profit, high popularity), Puzzles (high profit, low popularity), Plowhorses (low profit, high popularity), and Dogs (low profit, low popularity).
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