This is just a really simple way of working out how to price your food. Essentially once you work out your cost per portion just for raw ingredients it should be about 20% of your cost.
Preferably you want to be working on a 25-30% profit margin.
- Food costs – 20%
- Rent – 20%
- Staff – 20%
- Tax – 5%
- Overheads / Fixed Costs – 10%
- Profit – 25%
We’d recommend rounding to the closest £1 as it makes it easier for everyone.