Restaurant food cost

How to Price a Restaurant Menu

Cost is the floor. The street still has a vote.

How to price restaurant dishes from food cost targets, packaging and tax — and why competition, demand and willingness to pay still matter after the calculator.

Published by BYNOQ Restaurant Growth Academy9 min read

Start with cost, then look up

If a dish costs ₹90 in food and you want food cost around 30%, you are looking at a starting price near ₹300 before packaging and tax. That is arithmetic. It is not a promise that 30% is “correct” for your concept.

Then walk the neighbourhood. If every comparable plate is ₹180, you need a reason guests will pay ₹300 — or a cheaper recipe.

What a calculator will not decide

Demand, competition, location and willingness to pay sit outside the formula. So does whether the dish slows the kitchen. Price is a business decision. The calculator only stops you from pricing below ingredient cost by accident.

Frequently Asked Questions

1. Should every dish hit the same food-cost percentage?

No. Signature dishes, commodities and high-labour items behave differently. Use a target as a starting point, then look at contribution in rupees and whether the dish sells.

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