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How to price a dish

Three methods give a price: aim for a food cost, apply a multiplier, or require a cash margin. They agree on paper; they part ways on the dishes that matter.

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Start from a target food cost

net price = food cost ÷ target share. A dish costing €6.00 that you want at 30% food cost sells for €20.00 net, or €22.00 including VAT to eat in.

VAT is added next, and depends on how the food is consumed. French rates: 10 % for eating in and takeaway meant to be eaten straight away, 5.5 % for takeaway products that keep, 20 % on alcoholic drinks in every case. Use your own country's rates if you trade elsewhere.

Worked example

Worked example: two dishes, two readings of margin

Two dishes on the same menu, net prices.

Dish A — cost €2.00, sold at €8.00 net25% · €6.00 margin
Dish B — cost €7.00, sold at €20.00 net35% · €13.00 margin
What dish B earns on top, on every sale€7.00

Dish A has the better percentage; dish B earns €7.00 more per plate. Pushing A on the floor because its ratio flatters it lowers the margin of the service.

Think in cash, not percentages

A low percentage reassures, but cash pays the rent. A dish with a low food cost can return little per plate; a dish that is “dearer” in proportion can return twice as much. The third method starts there: set the cash margin each dish has to leave, and work the price back from it.

It is the most reliable on dishes with a low food cost — vegetable starters, desserts — where a multiplier applied mechanically gives a price too low for the work they take.

A price is not set in isolation

A price that is right for its cost can be wrong for the menu: if it falls outside its family's range, customers do not choose it. The Omnès method checks that overall consistency, family by family.

Frequently asked questions

How do you set the selling price of a dish?

Three methods give the same answer from different angles: start from a target food cost (the food cost divided by the percentage you aim for), apply a multiplier, or set the cash margin the dish has to return. The third is the most reliable on dishes with a low food cost.

Which VAT rate applies to a dish in France?

10 % for eating in and for takeaway meant to be eaten straight away, 5.5 % for takeaway products that keep, and 20 % on alcoholic drinks whatever the setting. These are French rates — the calculator lets you enter your own.

Should you think in percentages or in cash margin?

In cash. A dish at 25 % food cost returning €6 weighs less than a dish at 35 % returning €14. Euros pay the rent; percentages do not.

And the rest of the year

These calculations, every month, without redoing them

Margéo reads your supplier invoices, imports your sales and recalculates recipe costs, prime cost and break-even with every document. The calculators behind these guides come with your account.