Business & pro

Restaurant food cost

A dish's food cost as a share of its selling price, and the price to charge for a target ratio.

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How it works

Food cost = ingredient cost / net price × 100. Targets are often 25–32%. Suggested price = cost / target × (1 + VAT).

Results are for guidance only and do not replace professional advice.

Worked example

With the default values:

  • Ingredient cost per portion4.20
  • Menu price incl. VAT18
  • Restaurant VAT (%)12
  • Target food cost (%)28

you get:

  • Food cost26.1 %
  • Price excl. VAT€16.07
  • Gross margin per portion€11.87
  • Multiplier× 3.83

Frequently asked questions

How does the “Restaurant food cost” tool work?

Food cost = ingredient cost / net price × 100. Targets are often 25–32%. Suggested price = cost / target × (1 + VAT).

What do I need to enter?

Just fill in: ingredient cost per portion, menu price incl. vat, restaurant vat, target food cost. The result updates as you type.

Can you give an example?

Ingredient cost per portion: 4.20; Menu price incl. VAT: 18; Restaurant VAT (%): 12; Target food cost (%): 28 → Food cost: 26.1 %; Price excl. VAT: €16.07.

Is this calculator free, and is my data private?

Yes. HOD Calc is completely free with no sign-up. The calculation runs in your browser: nothing you type is sent or stored.