Digital Decision Tools / Hospitality Decision Tools / Menu & Service Pricing
Hospitality Decision ToolsPrice a dish wrong once, and you're either losing money or losing guests.
Enter your real ingredient, labor, and overhead cost, and what comparable places charge. We calculate the price your target food cost requires, check your prime cost health, and compare you to the market. You set a price you can defend.
About this tool
A tool that prices a dish or service by the target food cost percentage, checks the soundness of prime cost and compares with competitors' prices.
The problem it solves
A hospitality business that prices its dishes by guesswork and loses money or guests.
What you enter
Ingredient cost per dish; labor cost; overhead; venue type and target food cost percentage; expected annual volume; annual fixed costs; prices of up to three competitors.
How it is calculated
Price = ingredient cost ÷ target food cost percentage, a prime cost check (food and labor together), break-even point and the price position against the market.
What you get
Five price scenarios, a verdict on market position and prime cost health, a PDF report and an Excel model.
Questions about the tool
What does the tool not cover?
It is a decision-support estimate built on the figures the client enters, and it does not replace a full study or legal, tax and financing due diligence. It does not replace testing guests' acceptance of prices.
How long does it take?
One short session once the figures are ready
How do I go deeper after the result?
The consulting service linked to this tool: "Revenue and Cost Model".
Illustrative example
Menu Pricing Advisor (Hospitality)
Hypothetical, rounded inputs. This example is not a prediction, does not reflect market data and does not describe an actual client. Hypothetical main dish, restaurant. Country: Saudi Arabia (Saudi riyal).
Hypothetical inputs
| Item | Value |
|---|---|
| Ingredient / raw material cost | 12 |
| Labor cost allocated per dish | 11 |
| Overhead allocated per dish | 3 |
| Target food cost (% of price) | 30 |
| Expected annual volume (dishes/services sold) | 30,000 |
| Total annual fixed costs (for break-even) | 300,000 |
| Competitor 1 price | 38 |
| Competitor 2 price | 42 |
| Competitor 3 price | 46 |
What the report shows
IN LINE WITH MARKET Your target-food-cost price sits close to what comparable venues already charge, a defensible position.
| Cost / Dish | 26 SAR |
| Recommended Price | 40 SAR |
| Competitor Average | 42 SAR |
| Scenario | Price | Food Cost % | Prime Cost % | vs. Market | Break-Even Units | Projected Annual Profit |
|---|---|---|---|---|---|---|
| Break-Even Floor (zero profit) | 26 SAR | 46.1% | 88.5% · HIGH: WATCH | -38.1% | N/A | -300,000 SAR |
| Target Food Cost | 40 SAR | 30.0% | 57.5% · STRONG | -4.8% | 21,429 | 120,000 SAR |
| Match Competitor Average | 42 SAR | 28.6% | 54.8% · STRONG | 0.0% | 18,750 | 180,000 SAR |
| Below Market (aggressive) | 36.1 SAR | 33.2% | 63.7% · HEALTHY | -14.1% | 29,703 | 3,000 SAR |
| Premium | 49.68 SAR | 24.1% | 46.3% · STRONG | +18.3% | 12,669 | 410,400 SAR |
The profits shown assume the expected volume stays constant at every price and do not measure customer response to price.
Not included: It is a decision-support estimate built on the figures the client enters, and it does not replace a full study or legal, tax and financing due diligence. It does not replace testing guests' acceptance of prices.
The figures above come from hypothetical inputs; do not measure your own project against them.
Menu & Service Pricing Advisor
Enter your real ingredient, labor, and overhead cost, and what comparable places charge. We calculate the price your target food cost requires, check your prime cost health, and compare you to the market. You set a price you can defend.
- Pricing by target food cost %: the industry-standard method
- Prime cost health check (food + labor combined)
- See how your price compares with the market
- Downloadable PDF report and Excel pricing model