How to Calculate Your Plate Cost and Guarantee Steady Profit

🧾 Introduction
A great-looking menu isn’t enough… If you don’t calculate your plate cost correctly, you might sell a lot but lose even more! Pricing food = Science + Analysis + Market Awareness. Let’s break it down step by step.

1. What Is Plate Cost?

Plate cost = All ingredients used + any operational costs linked to the dish 🍔 Example: If you’re selling a burger, count the bread, meat, lettuce, cheese, packaging—even the cooking oil.

2. Direct vs Indirect Costs

● Direct: Ingredients directly in the dish
● Indirect: Electricity, gas, water, salaries, and waste ✅ Total cost = Direct + Indirect

3. Don’t Forget Waste

📉 There’s always a difference between what you buy and what you actually serve. 🍅 Example: 1kg of tomatoes might give you only 850g after trimming. You need to include that in your costing.

4. The Pricing Formula

🧮 Plate Cost = (Raw Material Cost + Share of Overhead) ÷ Number of Portions
💰 Selling Price = Plate Cost ÷ (1 – Desired Profit Margin)
💡 Want a 60% profit? Do the math right!

5. Profit Margin Isn’t Fixed

Each item has a different margin:
🧃 Drinks: High margin
🍝 Mains: Medium margin
🍟 Sides: Low margin but attract customers ✔️ Run a profitability analysis on every section of your menu.

6. Monitor Prices Regularly

🔁 Markets fluctuate, and ingredient costs go up. 🔍 If you don’t review your raw material prices monthly, you may end up selling at a loss without realizing it.

7. Competitor Pricing Matters

Don’t price based only on your cost. 💡 Check your competitors—what they offer, their pricing, and how your quality compares. Set a realistic price that ensures profit.

8. Menu Layout Affects Sales

👁️ Put your high-margin items in the most visible spots. 🧠 Customers make decisions visually before logically. 📋 Your menu isn’t just a catalog—it’s a selling tool.

9. Review and Adjust Regularly

Every 3 months, review:
✔️ Dish costs
✔️ Actual sales
✔️ Customer feedback
✔️ Items making money vs those just filling space

10. Final Thoughts

A menu without smart pricing = A busy restaurant losing money. 💼 Costing isn’t a one-time task—it’s a continuous process. 📊 At Food Guid, we help you price each dish smartly based on market, quality, and location. 📞 Book your consultation today and create a menu that makes money—not just noise.