Determining menu prices
Whatever your total cost of making a dish is, make sure it’s about 33% of your menu cost. For example, if your dish costs $24, your food cost should be about $8. If your portions get bigger and your menu price remains the same, your food cost will go up and your profit margin will go down.
Customers are number sensitive
It may not seem like much to add on a dollar or two to justify some varying costs, however, be aware that customers are very sensitive to price hikes, so you’ll want to be as accurate as you can in your kitchen math especially when you’re working out your menu the first time around.
Finding the right menu prices and striking the perfect balance between delighting diners and making a profit isn’t always easy. However, it’s a necessary and important step for your business to be successful.