The short answer
Price from reliable recipe cost, contribution needs, guest expectations, competitive context, preparation burden and the menu’s overall mix. Food-cost percentage alone does not show how many dollars an item contributes.
Step by step
Work through the decision
- 01Standardize recipe and portion cost
- 02Add waste and modifier assumptions
- 03Calculate contribution margin
- 04Review price architecture across the menu
- 05Test changes and monitor mix
Common mistakes
- Applying the same target percentage to every item
- Ignoring bundled sides and condiments
- Copying competitors without knowing their model
- Changing prices without checking menu structure
Working checklist