Calculating accurate menu prices to ensure all items sell and the canteen makes a profit is essential, ask these simple questions:
- do you know the cost price of every single item?
- do you use a formula for calculating the selling price of all items?
- does your canteen policy state healthier items should be priced lower than others?
Before you can make a decision on how much you are going to charge, you need to look at the BIG picture of how your canteen operates. Unless something very drastic has changed (e.g. you have 30% more/less students, or wages have gone up by $5 an hour) you should be able to use last year’s figures as a guide.
To work out the selling price of a menu item you must:
- know what the cost price of each menu item is
- know what your overheads and
- know what your required Gross profit is.
Use the Recipe costing sheets below to work out your individual recipe costs and the fact sheet to help you calculate the appropriate markup.
Download these templates