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Price the plate, not the menu
Hospitality

Price the plate, not the menu

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Hospitality August 1, 20262 min read

Price the plate, not the menu

Most menus are priced by copying the restaurant across the road. Recipe costing — knowing what every dish actually costs to put on the table — is tedious exactly once, and then it changes every pricing decision you make. The dishes you think are your winners rarely are.

Jaswant Singh

Jaswant Singh

Co-Founder, CTO & COO, Kauzio

Ask a restaurant owner what their best-selling dish is and they will answer instantly. Ask what that dish costs to put on the table — ingredients, at today's supplier prices, in the portions the kitchen actually serves — and the answer is usually a pause, then a guess. That gap is where menus lose money.

The exercise nobody enjoys and everybody should do

Recipe costing is simple and tedious: for each dish, list every ingredient, the quantity that actually goes on the plate, and the current supplier price for that quantity. Add them up. That is the plate cost. Divide by the menu price and you have the food cost percentage for that dish — the number that should be driving your pricing, and almost never is.

Do it for your ten best sellers first. Two findings show up in almost every kitchen that runs this exercise honestly:

The star that isn't. A popular dish with an ugly plate cost — often something protein-heavy priced back when the protein was cheaper. It sells brilliantly and earns almost nothing, and every plate of it that leaves the kitchen displaces a plate of something better.

The sleeper. A modestly priced dish built on cheap, stable ingredients with a margin that would embarrass your signature. It could carry the menu, and nothing on the menu tells the customer to order it.

Costs move. Your menu doesn't.

The deeper problem is that a recipe costing done once is a photograph, and supplier prices are a film. Cheese moves. Oil moves. The dish you costed correctly in March can be quietly underwater by August, and nothing on your P&L will point at the specific dish — you will just see the blended food cost creep and blame it on everything at once.

This is the same disease we described in The 20% sale that costs you 35%: decisions priced against yesterday's numbers. The fix is the same too — the maths is easy; the discipline of re-running it is what fails. That is a job software should do: watch the ingredient prices you are actually paying, recompute the plate costs, and interrupt you when a dish crosses the line from earning to costing — which is precisely how we built it into Kauzio for hospitality.

What to do this week

Cost your top ten dishes at current prices. Rank them by margin, not by popularity. Then look at the two lists side by side. The dishes that are high on both lists are your menu's engine — protect them. The ones high on popularity and low on margin need a price move, a portion decision, or a recipe change. The ones low on both are taking up space.

One afternoon of tedium. It will pay for itself by Friday.

#recipe costing#menu pricing#margins

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