Food Cost Pricing

Food cost pricing in a restaurant needs to be precise. You need to know that every item ordered by your guest is producing profit for you. Start at your budget and go to you food cost pricing sheet and know what each item with all of the ingredients cost you to send out to the guest.Then you can price it on your menu. Of course it won’t mean a thing if the proper recipe is not used. But that’s another story. Below is a look at an excel spread sheet and the costing of that menu item.

Food Cost Pricing Sheet

In this example we see a food cost of 37.15% That should be what your budget forecast says you want to hit. In a perfect world this would be perfect. This is not a perfect world. So give yourself a little room and hit the budget # or fall below the budget #. You do not want to go above what you have in the budget. Their are other ways of looking at your menu pricing. Higher priced items come in at a higher food cost % but provide more cash per person. See our Menu pricing post for more information on this food cost pricing method. There are many more examples but lets keep it simple here.

If you would like Social Media Connected to help set up your food cost pricing Email: Social Media Connected


Just read an article that said that wholesale food prices are taking a big jump this year. Last year they jumped but not as much as anticapated for this year. Last year I think this could be a one reason for the higher than expected cost. These #s were Taken from the consumer price index forecast for 2013 in the QSR January issue.
  1. beef 4.0 to 5.0% jump
  2. Chicken 3.0 to 4.0% jump
  3. pork 2.5 to 3.5%
  4. Dairy 3.5 to 4.5%
  5. Eggs 3.0 to 4.0%
  6. They did mention that seafood might remain stable. So that is good, but major chains are looking at seafood as a way to keep food cost down and  keeping budget minded customers. So will the large switch by major chains to seafood increase cost?
Menu pricing needs to take wholesale price increase forcast into consideration.

About Social Media Connected

A social driven Maine based company serving the needs of businesses and promoting Maine as the destination state.
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