Restaurant & Catering Calculators
Price a menu item at your target food cost % and quote events per person at a target margin on the selling price.
Menu Cost
Plate cost → suggested menu price
US full-service median: about 32% (see guide)
Optional uplift on ingredient cost
Suggested Menu Price
$31.17
Plate cost $9.35 · Margin $21.82/plate · Actual food cost 30%
Catering Quote
Per-person quote at a target margin
Gross margin on the selling price
Quote (Per Person)
$69.23
Total quote $3461.54 · Profit $1211.54 (35%) · Cost $45.00/person
What is food cost percentage and menu pricing?
Food cost percentage is the share of a dish's selling price that goes on the cost to produce it, and menu pricing works backwards from a target percentage to a price. This page applies the same idea to two hotel jobs: pricing a restaurant plate and quoting a catered event at a target gross margin. For a hotel F&B outlet it keeps prices tied to real costs instead of guesswork or competitor menus.
Formula
Menu price = Ingredient cost × (1 + overhead %) ÷ target food cost %; Catering quote = (Covers × (food + beverage per person) + rentals + staffing) ÷ (1 − target margin %)
The menu price divides plate cost by the cost share you want it to be. The catering quote divides total event cost by one minus the margin, so the margin is a share of the selling price rather than a markup on cost.
Worked example: one plate and one 50-guest event
- Menu: $8.50 of ingredients plus a 10% overhead uplift gives a plate cost of $9.35.
- At a 30% target food cost, the price is $9.35 ÷ 0.30 = $31.17, leaving $21.82 per plate.
- Catering: 50 covers × ($18 food + $7 beverage) = $1,250 in per-person costs.
- Add $400 rentals and $600 staffing for a total cost of $2,250, or $45.00 per guest.
- At a 35% margin, the quote is $2,250 ÷ 0.65 = $3,461.54, or $69.23 per person, with $1,211.54 profit.
A 35% markup on $2,250 would only be $3,037.50 (a 25.9% margin), which is why the quote divides by 0.65 instead of multiplying by 1.35.
How to read your F&B results
- The suggested menu price is a cost-based floor. Round it to a price point that fits your menu and local market, then check the food cost % again.
- The "actual food cost" shown includes the overhead uplift. Measured on ingredients alone, the example dish runs at about 27.3% ($8.50 ÷ $31.17).
- For catering, rentals and staffing are spread across covers, so a smaller group raises the per-person quote. Set a minimum guest count in the contract to protect the margin.
- Results exclude VAT or sales tax, service charge and gratuity. In Germany, prices offered to consumers must be shown as a total including VAT and other price components (§ 3 PAngV), so add them before printing a menu price or quoting a private guest.
Frequently asked questions
What is a good food cost percentage for a hotel restaurant?
Toast, citing National Restaurant Association survey data, puts the 2024 US full-service median at about 32% of sales for food and non-alcoholic beverages. That is a US restaurant figure, not a hotel one, and the right target depends on concept, price level and how labour-intensive the menu is. Track your actual food cost from inventory and purchases and set targets from that.
What is the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of cost. A 35% margin needs about a 54% markup, so confusing the two underprices events.
How do I calculate the plate cost of a dish?
Cost each ingredient at the portion used, including trim and cooking loss, then add garnishes, sauces and sides. Update it when supplier prices change, since an old plate cost quietly erodes margin.
Should beverage cost be priced the same way as food?
Beverages usually carry different cost targets from food, so many hotels price them separately. In the catering quote, beverage is combined with food per person and the same margin is applied to the total.
Sources