Reverse Calculator

Menu Price from Your Food Cost %

With a $4 plate cost and a 30% food-cost target, the menu price should be $13.33. That leaves $9.33 per plate for labor, rent, and profit. At a 40% target the same plate prices at $10.00.

Results

Visualization

Cashbizly provides illustrative business estimates only. Results depend on your inputs and assumptions and are not accounting, tax, or legal advice. Consult a CPA or financial advisor before major decisions. Tax-year figures (mileage, QBI, SEP, etc.) are labelled by year and should be verified at IRS.gov.

How It Works

Menu Price = Ingredient Cost / Target Food-Cost %. Full-service restaurants commonly target 28-35% food cost; the remainder must cover labor (typically 25-35% of revenue), occupancy, and profit. This is the reverse of the food-cost % formula and the standard restaurant costing method.

What Should You Do?

Scenario 1: a cafe with $1.20 coffee cost at 25% target charges $4.80. Scenario 2: if competitors cap lattes at $5, your max sustainable food cost is $1.25. Scenario 3: a 5-point food-cost improvement (30%->25%) on $500k revenue frees $100k before other costs.

Frequently Asked Questions

What is a good food cost percentage?

Most full-service restaurants target 28-35%; quick service may run 25-30%; fine dining can be lower on cost but higher on labor. Benchmark against your segment.

Does this include labor and rent?

No — food cost is only ingredients. The remaining 65-75% must cover everything else, so pair it with our Labor Cost % tool.

How do I lower food cost without raising price?

Portion control, waste tracking, and smarter sourcing. A 2-point waste reduction often beats a price increase for net profit.

Authoritative References

U.S. Small Business Administration — Restaurants — SBA small-business restaurant guidance and food-cost benchmarking.
Investopedia — Food Cost — Food-cost percentage definition and formula.