Practical kitchen costing guide
How to price restaurant dishes using food costs and target GP
A profitable menu starts with the ingredients going onto the plate. This practical UK kitchen guide explains how to calculate portion costs and work back to a selling price.
Try the free recipe calculator →No login or payment card needed for the free one-recipe calculator.
Step 1: Calculate the actual recipe ingredient cost
List every ingredient, how much of each pack your recipe uses and what that pack costs. Include garnishes, sauces and sides where they are part of the dish. Divide the batch ingredient cost by the number of portions it produces.
Step 2: Set a target ingredient-based GP
Decide on a target appropriate to your kitchen and dish. Then calculate selling price excluding VAT = ingredient cost per portion ÷ (1 − target GP decimal). This targets ingredient GP only, not net business profit.
Worked restaurant menu pricing example
A main course costs £4.00 in ingredients per portion. At a target ingredient-based GP of 70%, divide £4.00 by 0.30.
| Ingredient cost per portion | £4.00 |
|---|---|
| Target ingredient GP | 70% |
| Calculated selling price (ex VAT) | £13.33 (rounded) |
| Ingredient cost percentage | 30% |
This example is not a recommended real-world selling price. Set final prices after accounting for VAT rules, labour, overheads, wastage, demand and what customers are willing to pay.
Step 3: Check VAT, labour, waste and overheads
Use consistent ex-VAT figures when comparing ingredient cost and selling prices. VAT treatment depends on the food and service provided, so check the correct treatment for your business. Ingredient GP does not cover wages, rent, energy, platform charges, equipment or wastage.
Step 4: Update prices when supplier costs change
A dish that looked profitable last month can lose margin when pack prices increase. Keep a supplier price book and revisit high-volume dishes frequently. Mise en Price lets you link ingredients in saved recipes to confirmed supplier prices.
How do I price a catering menu or buffet?
Cost the full batch or event menu first, estimate realistic covers and portions, and add separate allowances for staffing, transport, service, equipment and wastage. A recipe costing calculator helps with ingredients but does not replace a full event quotation.
Where should I start?
Cost three of your best-selling dishes first. Confirm pack sizes and actual quantities, calculate portions, and compare each ingredient GP with your target. Use the free recipe costing calculator to start without creating an account.
Try Mise en Price in your kitchen
Cost one recipe free without signing up. If you need saved recipes, supplier price tracking and invoice scanning, you can try the full Mise en Price app free for 14 days, without a card. After that, choose whether to subscribe for £9.99/month; you will not be charged automatically.
Prefer a spreadsheet?
Download our free recipe costing spreadsheet template for a worked ingredient-cost example you can edit in Excel or Google Sheets.