How do you price a menu item from ingredient cost?
Divide the ingredient cost by your target food cost % (as a decimal). For example, a $5.50 plate at a 30% target gives an ex-GST menu price of about $18.33, which becomes $20.17 inc-GST.
Suggest a menu price from ingredient cost and your target food cost percentage.
Divide the ingredient cost by your target food cost % (as a decimal). For example, a $5.50 plate at a 30% target gives an ex-GST menu price of about $18.33, which becomes $20.17 inc-GST.
Australian cafés and restaurants typically aim for 28–32%, with 30% being the most common starting point. Premium venues sometimes go lower; high-volume casual venues sometimes accept higher.