The calculation
Price before tax = cost of the dish ÷ target food cost percentage. A lower target raises the price and the margin per dish. Then add whatever taxes apply in your country.
Example with different targets
For the breaded cutlet with fries, which costs $3.01:
| Target food cost | Price before tax | Margin per dish |
|---|---|---|
| 25% | $12.04 | $9.03 |
| 28% | $10.75 | $7.74 |
| 30% | $10.03 | $7.02 |
| 35% | $8.60 | $5.59 |
Round and compare
Round to a price that reads easily on the menu, preferably up: $10.75 becomes $11.00. Then look at what similar dishes cost nearby: if you end up well above, review the recipe or the portion before the price.
When an ingredient goes up, the cost goes up and so does the percentage. Reviewing prices when costs change keeps you from losing margin without noticing.