Pricing your menu
Once dishes are planned, costs per dish and selling prices need to be calculated. To do this, a large number of factors need to be considered, including portion cost of each food item, cost of condiments and other costs such as wastage. Overhead costs can be kept down by serving part or fully prepared dishes, which require less staff time and lower wage allowance.
When costing:
- Consider seasonality of products and average the costs across the longevity of the menu. Brakes market prices ensure you pay the best price for the month.
- Allow costs for seasonings, oil, garnish, condiments and wastage (approximately 6%).
- Include a cost allowance for all non-food expenses such as paper serviettes, bin liners and washing up liquid.
When setting the selling price:
- Calculate the profit level per dish to cover all costs and overheads.
- Include VAT in the selling price calculations.
- Use the gross profit matrix below to ensure that prices achieve the required GP%, especially on high selling lines.
Gross Profit Matrix
Use this matrix to calculate your VAT inclusive selling price. Match up your food cost price with the gross profit % you want to achieve.
