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: two dishes, two readings of margin
Two dishes on the same menu, net prices.
| Dish A — cost €2.00, sold at €8.00 net | 25% · €6.00 margin |
|---|---|
| Dish B — cost €7.00, sold at €20.00 net | 35% · €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.