How to Price a Restaurant Menu
Practical steps to pricing menu dishes from cost, target GP and VAT — without guessing.
Know your cost
Pricing starts with an accurate portion cost. Without it, every price is a guess.
Work back from a target GP
Net price = portion cost ÷ (1 − target GP). Then add VAT. A £3.00 dish at a 70% target needs a net price of £10.00, or £12.00 including 20% VAT.
Sense-check the market
Compare against what your guests expect to pay, then adjust portion or ingredients if the numbers don't work.
Review as costs change
Prices that worked last year may not work today. Revisit your menu as supplier prices move.
Try the numbers yourself with our free food cost calculator.