Restaurant Menu

Whether you’re opening a new restaurant or revamping your menu, pricing new dishes can be tricky. You have to balance expenses and prices. Your gross profit percentage (GP%) needs to be approximately 65-70% against food costs of 30-35%. This can be accomplished by securing the best ingredients of the highest quantity. Here is a quick and easy guide that should help you make a profit while providing pleasing prices for your customers.

Pricing Menu Items

When deciding upon the cost of food and drink on your menu, there are certain expenses you need to take into consideration – mainly direct costs such as ingredients and indirect costs such as VAT, property rent, rates, commercial catering suppliers and employee salaries.

Firstly, you need to calculate the cost of making the menu item, focusing on the ingredients. So if a vodka and coke costs £0.75 to prepare, you would charge between four and five times this as the price for the drink, exclusive of VAT. VAT should be added on to the overall cost. You can find information on VAT here:

Control Waste and Portion Sizes

These are fundamental in keeping down your food costs. With regards to food waste, if £50 is lost per day, this would correlate to £12,500 per year. Consequently, chefs need to be careful and resourceful with their ingredients.

Restaurant Menu

Each portion of food served should be the same size in order to easily monitor food costs and calculate your final menu prices to maximise profits. Work with your head chef to help you create ingredient lists for every item on the menu, use precision scales (such as those from, and train your staff on how to measure ingredients. When calculating the grammage of fine ingredients, the easiest thing to do is to calculate the amount needed for ten portions and divide this by ten to get the costs of ingredients in a portion.

Update Your Menu Seasonally

Changing your menu with the seasons is crucial because of the significant difference in prices over the year. Fruits and vegetables that are in season are cheaper than those that aren’t. By changing your menu rather than the prices you’ll produce higher profits. You can offer the same main course but offer a different side and keep the prices the same.