Guides
How to cost a dish step by step
Quick verdict
Costing a dish isn't magic: it's a 5-step process. Build the standard recipe, get the cost per portion using usable weight after waste, divide by price for the food cost, and set the price that protects your margin.
Costing a dish is repeating the same simple process on every menu item. Once you systematize it, it stops being a monthly pain.
| Costing by eye | Costing with method | |
|---|---|---|
| Recipe | ✕No sheet | ✓Tech sheet per portion |
| Waste | ✕Ignored | ✓Built into cost |
| Price | ✕Intuition | ✓From food cost ≤ 32% |
Side-by-side comparison
Costing by eyeNo method
- You weigh 'roughly'
- You ignore waste
- Price comes from intuition
Costing with methodMasterestaurant
- Standard recipe per dish
- Usable weight + waste factor
- Price from target food cost
The numbers that matter
The numbers that matter
5
Steps to cost any dish
32%
Maximum target food cost per dish
+8400
Restaurants using the MR method
Real case
“By optimizing the menu using costs we grew sales over 46% in a short time.”
— Viviana Cañón, Co-founder (MR client)
How to apply it in your restaurant
How to apply it in your restaurant
Build the standard recipe
Exact ingredients and grams of the dish.
Exact ingredients and grams of the dish.
Apply the waste factor
Cost on usable weight, not gross.
Cost on usable weight, not gross.
Calculate food cost
Portion cost ÷ selling price.
Portion cost ÷ selling price.
Set the price
Adjust to hit or beat your target (~32%).
Adjust to hit or beat your target (~32%).
✦ AI applied
And with AI?
Project your food cost, spot margin leaks and simulate pricing scenarios in minutes. Diego F. Parra is an expert in AI applied to restaurants.
Free tools
Free tools to apply this now
Masterestaurant tools & method
Masterestaurant tools & method
⭐ EXPONENCIAL Transformation Program
Recommended by the Masterestaurant method
Open →⭐ 0.1 Training (build from zero)
Recommended by the Masterestaurant method
Open →Standard Recipe & Tech Sheet Builder
Open →Restaurant Costing Course
Open →Masterestaurant Methodology
Open →Specialized restaurant tools
Open →FAQ
FAQ
What do I need to cost a dish?
The standard recipe (ingredients and grams), each input's purchase price and the waste factor. With that you compute cost per portion and compare it to the selling price for the food cost.
What is the waste factor?
The percentage of an input lost when cleaning, portioning or cooking. Costing on usable weight (after waste), not gross, avoids underestimating the dish's real cost.
What is a good food cost?
Many profitable restaurants target 28-35%, with 32% as the maximum per-dish target. The key is measuring it per dish against your target, not estimating at month-end.
Related content
Related content
Comparison · Costing & Finance
Dish costing: traditional method vs Masterestaurant method
Comparison · Costing & Finance7 costing mistakes vs the right method in restaurants
Definition · Costing & FinanceWhat is food cost and how is it calculated?
Data · Costing & FinanceFood cost, prime cost and margin benchmarks for restaurants
Business ModelCase study: from 41% food cost and 14-hour days to a profitable, autonomous steakhouse
Technology & AICase: how a restaurant used AI with the MR method to grow
Cost it right from the first dish
Do it with the Masterestaurant method and protect your margin.
By