Price your menu with confidence. Enter a dish's recipe cost and target food cost percentage to get the right menu price, and see the gross profit you keep on every plate.
Food cost is what the ingredients of a dish cost you as a share of its menu price. Most restaurants and cafes aim for a food cost of roughly 28% to 35%, which leaves enough gross profit to cover rent, staff, and utilities. This tool works the price backwards from your recipe cost and target food cost, and also checks the food cost of a price you already charge.
Suggested menu price = recipe cost / (target food cost % / 100). Food cost % at a given price = recipe cost / price x 100. Gross profit = price minus recipe cost. Prices exclude GST; add GST on top at billing.
A paneer dish costs ₹90 in ingredients and you target a 30% food cost. The suggested menu price is 90 / 0.30, which is ₹300. Gross profit is ₹210 a plate and gross margin is 70%. If you actually price it at ₹350, the food cost drops to about 26% and profit rises to ₹260.
Most restaurants and cafes in India aim for 28% to 35%, depending on the format. Fine dining can run higher on premium ingredients, while high-volume quick service often pushes food cost lower. Lower food cost means more gross profit, but price too high and you lose customers.
Price your dish on the recipe cost first, then add GST at billing. Restaurant GST is commonly 5% without input tax credit, but confirm the rate for your setup. This tool works on the pre-GST price so your food cost math stays clean.
Include every ingredient in the finished plate at the quantity used, plus a small allowance for wastage and garnish. Do not include rent, staff, or gas here; those are covered by the gross profit that a healthy food cost leaves you.
Review pricing whenever ingredient costs move noticeably, and at least every few months. Track recipe cost per dish so a rise in oil, paneer, or vegetable prices does not quietly eat your margin.
Commmerce handles billing, KOT, menu, inventory, and online orders together, so your food cost and sales stay in sync.
See Commmerce for Restaurants
