Menu price calculator for restaurants
$5.00 ÷ 30% = $16.67
To keep $16.67 after a 25% commission: $16.67 ÷ (1 − 25%) = $22.22
Menu price = plate cost ÷ target food cost percentage. A dish that costs $5 in ingredients at a 30% target should sell for about $16.67 ($5 ÷ 0.30), the same example ChowNow uses. On a delivery app that takes 25%, the price that leaves the restaurant the same $16.67 is $22.22 ($16.67 ÷ 0.75). That gap is why delivery menus averaged 19% above in-store prices across 25 chains in 2023 (Gordon Haskett).
How do you price a menu item?
Cost out one serving: every ingredient at what you paid, including garnish, sides and the to-go container. Divide by your target food cost, usually 28% to 35% (ChowNow). Then check the result against what nearby restaurants charge and round to a price that reads well.
Should I charge more on DoorDash and Uber Eats?
Many restaurants do, and the math explains why. To keep the same money from a dish after a commission, divide the menu price by (1 − commission). At 25% that is a 33% higher price, at 30% about 43%. Gordon Haskett found delivery menus averaged 19% above in-store in 2023, so most restaurants only cover part of it (Food On Demand). Note that DoorDash's 6% pickup rate requires pickup prices to match in-store.
What markup do restaurants use on food?
A 30% food cost is a markup of about 3.3 times plate cost. 25% is 4 times, 35% is about 2.9 times. Drinks and sides usually carry a lower food cost than mains, which is why they help a check average.
What is a good target food cost percentage?
28% to 35% for most restaurants. Use a lower target for cheap, popular items you can push, and accept a higher one on signature dishes that bring people in. Track the whole kitchen with the food cost calculator.
Same dish, three ways to sell it
| $5 plate cost at 30% | Price | Restaurant keeps |
|---|---|---|
| In store or own app (pickup) | $16.67 | $16.67 before card fees |
| DoorDash Plus, same price | $16.67 | $12.50 |
| DoorDash Plus, marked up | $22.22 | $16.67 |
Regulars who order direct get the lower price and you keep the full margin. More: why food costs more on delivery apps.
Sources
- ChowNow: guide to restaurant food cost
- Gordon Haskett delivery price premium study, spring 2023 (via Food On Demand)
- DoorDash merchant pricing (Basic, Plus, Premier plans)
Prices and fees were checked on October 18, 2026. They change, so check the source before you decide.