Cost the actual portion
Use the recipe amount and expected yield, not a rough cost for the whole package. Small portion changes can materially change the required menu price.
Restaurant menu pricing
Price a dish from the cost you can explain.
A useful menu price starts with an explainable serving cost. Once that is in place, a target food-cost percentage gives you a clear price to compare with the price already on the menu.
Price required for a targetcost per serving ÷ target food-cost rateEnter the rate as a decimal: a 30% target is 0.30.
A practical workflow
Choose a target intentionally
The target is your decision. PrepMargin shows the resulting price and the gap from the current one so the tradeoff is visible.
Check the gross profit per plate
A percentage alone can hide the dollar amount. Review both the food-cost percentage and the dollars left after the food ingredients are covered.
A quick example
At a $4.20 serving cost and a 30% target, the price required to hit that target is $14.00. If the current menu price is $12.00, the gap is $2.00 before considering rounding, market fit, or the rest of the menu.
Common questions
Does this formula set my final menu price?
No. It produces a transparent price to review. You still decide how market position, portion size, labor, competition, and menu mix affect the final price.
Can I compare more than one dish?
Yes. Save a dish to the workspace, create a menu, and keep each recipe and ingredient cost editable for later review.