How to calculate restaurant menu prices
Start with what one portion actually costs to plate: ingredients, plus any direct extras such as packaging. Then choose a food-cost percentage you can live with. Selling price = total direct cost ÷ target food cost %.
If Chicken Biryani costs ₹120 to make and you target 30% food cost, ₹120 ÷ 0.30 = ₹400. At ₹400, the ₹120 of food is 30% of the bill. The remaining ₹280 still has to cover everything else the restaurant spends.
Worked example: Chicken Biryani
Ingredient cost ₹120, target food cost 30%, recommended starting price ₹400. For every ₹100 the guest pays, about ₹30 is food and ₹70 is left for rent, people, gas, packaging, commissions, tax, and waste.
Menu engineering looks at popularity and contribution together. After you have a starting price, check actual food cost against sales using the food cost calculator.
Restaurant-specific use cases
Cloud kitchens should leave room for aggregator commissions after food cost. Cafes with high beverage mix can often target a different food-cost band than a steakhouse. Recalculate when supplier prices move rather than waiting for the month to close short.
These calculators use standard restaurant maths for education. They are not accounting, tax or legal advice — confirm important decisions with your accountant or adviser.
Frequently asked questions
How do you calculate a restaurant menu price from food cost?
Divide the direct cost of one serving by the target food cost percentage. If a dish costs ₹120 to make and you want food cost at 30%, ₹120 ÷ 0.30 = ₹400. That ₹400 is a starting selling price, not a finished profit plan.
What is a good food cost percentage for a restaurant?
Many restaurants work somewhere around 25–35%, but there is no single correct number. Fine dining, cloud kitchens, bakeries, and bars can all run quite differently. Use a target that leaves enough money to cover rent, salaries, utilities, commissions, wastage, and tax — then check actual results.
Does a menu pricing calculator show the perfect selling price?
No. It only uses food cost and a target percentage. Rent, staff, delivery commissions, discounts, and waste still have to be paid from the remaining amount. Treat the result as a starting price recommendation.