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How to cost a dish step by step

Diego F. Parra By Diego F. Parra · Updated 2026-06-25· Costing & Finance
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 eyeCosting with method
RecipeNo sheetTech sheet per portion
WasteIgnoredBuilt into cost
PriceIntuitionFrom 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.
Apply the waste factor
Cost on usable weight, not gross.
Calculate food cost
Portion cost ÷ selling price.
Set the price
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.

Masterestaurant tools & method

Masterestaurant tools & method

Diego F. Parra

Diego F. Parra — International consultant, expert in creating and scaling restaurants and in AI applied to restaurants, foodtech and HORECA. Methodology applied in 8.400+ restaurants across 43 countries · Expert in Artificial Intelligence applied to restaurants, hospitality and food businesses · 20+ years in restaurants, catering, large events and business growth · Author of the book «From Slave to Owner» (Amazon) · International keynote speaker for the HORECA sector.

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.

Cost it right from the first dish

Do it with the Masterestaurant method and protect your margin.

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