HorecaBenelux
Entrepreneurship10 September 20266 min read

Food cost, gross margin and menu engineering: how to set prices that work for your guests and your books.

By Horeca Benelux

Editorial team

Pricing your menu without guesswork

Many prices on hospitality menus were once set by gut feeling and then raised by a few percent each year. Meanwhile purchase prices for butter, meat and vegetables have fluctuated sharply. Time to do the maths again.

Start with the plate

Make a recipe card for every dish with exact quantities and the current purchase price, including trim loss. A 200-gram steak on the plate quickly needs 240 grams bought in.

A 200-gram steak on the plate quickly needs 240 grams bought in.

Food cost as a guide

Most restaurants aim for a food cost of 28 to 32 percent of the selling price excluding VAT. A dish with €7 of ingredients therefore needs to bring in at least €22 excluding VAT — around €25 on the menu.

Stars and workhorses

Menu engineering plots your dishes on two axes: popularity and margin. Stars sell well and earn well: give them pride of place. Dishes that sell little and earn little deserve a critical look — or the bin.

About the author

Horeca Benelux

Editorial team · Horeca Benelux

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