The menu pricing formula
The standard way to price from food cost is to divide the plate cost by the food cost percentage you want the dish to run at:
menu price = plate cost ÷ (target food cost % ÷ 100)
A $4.20 plate at a 30% target prices at $14.00; at 25% it prices at $16.80. If you don’t know your plate cost yet, build it first with the food cost calculator — this tool picks up where that one leaves off.
Rounding without giving margin away
This calculator rounds up to the nearest .95, .99, or whole dollar, never down — so the rounded price always meets or beats your target. Rounding $13.62 down to $12.95 would quietly push a 30% target to 32.4%; rounding up to $13.95 brings it to 30.1%.
Percentage floor, dollar ceiling
Use the target percentage to set the floor price, then sanity-check two things: what competitors charge for comparable dishes, and the contribution margin in dollars. High-cost proteins often deserve a higher food cost percentage because they still contribute more dollars per plate — that’s margin you bank, not a ratio you frame.
Frequently asked questions
How do I price a menu item from food cost?
Divide the plate cost by your target food cost percentage (as a decimal). A dish that costs $4.20 to plate, priced for a 30% food cost, should sell for $4.20 ÷ 0.30 = $14.00. Then adjust for what your market and concept will bear.
What food cost percentage should I target?
Most operators target 25–35% depending on concept: quick service and pizza run lower (20–30%), casual full service around 28–35%, and high-protein concepts like steakhouses up to 40%. Target lower percentages on high-volume items and remember rent, labor, and everything else has to fit inside the remaining margin.
Should menu prices end in .95, .99, or .00?
Charm pricing (.95/.99) reads as value-oriented and is common in casual and quick-service menus. Whole-dollar pricing reads as upscale and is increasingly the norm in full-service restaurants. Pick one style and keep it consistent across the menu; this calculator can round to any of the three.
Why is percentage-based pricing not the whole story?
Because you bank dollars, not percentages. A dish at 40% food cost that contributes $12 of gross profit beats one at 25% contributing $6. Use percentage targets to set a floor, then check the contribution margin — menu price minus plate cost — on every item.