Determining Menu Item Selling Price

Appears in
The Fundamental Techniques of Classic Cuisine

By French Culinary Institute

Published 2021

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Once menu item costs have been calculated, the selling prices can be quickly determined by using a cost multiplication factor (i.e., if a 33 percent food cost is desired, multiply the food cost by 3.3). To obtain the factor, use ths formula:
Formula: Multiplication Factor Example
100 divided by 100
Food cost percentage 3.3
Equals multiplication factor = 30
The same multiplication factor does not apply to all menu items. There is, in some cases, a wide price gap between the costs of different recipes. The objective is to strike a balance in menu pricing by using a lower multiplication factor for some dishes and a higher one for others. For example, a soufflé may have a low food cost and the multiplication factor (markup) can be made higher to be more in line with the more costly items on the menu.