How to calculate restaurant dish prices
Complete formula: food cost, waste, target margin and local market adjustment.
Calculate the real food cost
Food cost is the total cost of a dish's ingredients, including waste (losses during preparation).
Formula:
Food Cost = Σ (cantidad_bruta × precio_kg)
cantidad_bruta = cantidad_neta × (1 + merma%/100)
📌 Example — Paella Valenciana (1 portion):
| Ingredient | Net | Merma | Price | Cost |
|---|---|---|---|---|
| Arroz bomba | 100g | 0% | €1.80/kg | €0.18 |
| Pollo | 150g | 15% | €5.20/kg | €0.90 |
| Gambas | 80g | 20% | €16/kg | €1.54 |
| Aceite oliva | 20ml | 0% | €6.50/l | €0.13 |
| Azafrán | 0.3g | 0% | €8000/kg | €2.40 |
| Total food cost | €5.15 | |||
Apply the target margin
Target margin varies by dish type. For rice and mains: 30–35% food cost (65–70% margin).
Formula:
Precio sin IVA = Food Cost ÷ Food Cost %
Precio con IVA = Precio sin IVA × 1.10
📌 Example — Paella (food cost 35%):
€5.15 ÷ 0.35 = €14.71 → €14.50 (rounded)
€14.50 × 1.10 = €15.95 (IVA incluido)
Adjust to the local market
The calculated price is the minimum viable. Compare it with the median prices of similar restaurants in your area.
Torrevieja coast
€16–22
High season
Alicante
€14–20
Year round
Madrid centro
€15–22
No season
Reference margins by category
| Category | Food Cost % | Margin |
|---|---|---|
| Tapas / Starters | 25–30% | 70–75% |
| Rice / Paella | 30–35% | 65–70% |
| Meat | 35–40% | 60–65% |
| Fish | 35–45% | 55–65% |
| Drinks | 15–25% | 75–85% |
| Desserts | 20–28% | 72–80% |
Calculate your dish's optimal price in 30s
Pricora does all this automatically: food cost with waste, local market benchmark, season and zone adjustment.
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