Price a dish so its food cost hits your target percentage — divide the plate cost by the target food cost %. The inverse of the food-cost formula, used to set menu prices.
The example
$4.50 plate, 30% target.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | Plate cost | 4.50 |
| 3 | Target 30% | → $15.00 |
The formula
The formula:
How it works
How it works:
- Plate cost is the total edible-portion cost of all ingredients in the dish.
- Divide by the target food cost % (e.g. 30%) to get the menu price.
- At that price,
plate_cost / priceequals exactly your target — the math is self-consistent. - The pricing factor shortcut: multiply plate cost by
1 / target(3.33× for 30%).
Round to a menu-friendly price. The formula gives $15.00 exactly, but psychology and competition matter — operators round to charm prices ($14.95) or up to protect margin. Always check the actual food cost % after rounding: a small price bump can meaningfully improve the margin.
Try it: interactive demo
Plate cost and target food cost %.
Variations
Pricing factor
Multiply form:
Resulting food cost %
After rounding:
Gross profit per plate
Contribution:
Pitfalls & errors
Target as decimal. 30% is 0.30 — check the cell isn’t storing 30.
Re-check after rounding. Charm pricing changes the actual food cost % — verify it.
Include all costs. Use full plate cost (with yield and garnish), not just the protein.
Practice workbook
Frequently asked questions
How do I price a menu item for a target food cost in Excel?
What is the pricing factor?
Does rounding the price change the food cost %?
Stop fighting formulas. Learn them in a day.
This recipe is one of hundreds of real-world formulas we teach. Our Excel Formulas & Functions class covers lookups, logic, text, and dynamic arrays hands-on — live in Dallas–Fort Worth, Houston, Austin, Oklahoma City, Denver, or online.
See the Formulas & Functions Class