The 30% Rule: Why Most Restaurants Underprice Their Menu

The "Phantom" Cost

A new cafe owner buys a chicken for ₹200. They cook it and sell the dish for ₹300. They think they made ₹100 profit.

They actually lost money.

Why? They forgot the "Phantom Costs":

• Wastage: Bones, skin, and trimmings (Yield Loss).
• Hidden Ingredients: Oil, spices, gas, packaging.
• Overheads: Rent, labor, electricity.

The Golden Ratio: 30% Food Cost

Successful global chains operate on a strict rule: The cost of raw ingredients should never exceed 30-35% of the selling price.

If your dish costs ₹100 to make (Ingredients only), you must sell it for ₹300 to ₹330.

• 30% = Food Cost
• 30% = Labor & Rent
• 20% = Overheads
• 20% = Your Actual Profit

Stop Guessing. Start Calculating.

Calculating yield and percentages for every dish is tedious math. That's why most owners skip it (and fail).

We built a dedicated calculator for Indian restaurateurs.

👉 Open the Menu Pricing Calculator

1. List Ingredients: Add Chicken, Masala, Cream.
2. Enter Cost: Input purchase price.
3. Set Target: Slide to "30%".
4. Get Price: The tool instantly tells you: "Sell at ₹350 to stay safe."

It also shows you a visual "Profit Pie Chart" so you can see exactly where your money goes.

Calculate your menu prices now →

Automate Your Food Costing

Manually tracking food costs across dozens of dishes is unsustainable. With Setuverse's restaurant billing software, you get recipe-level inventory tracking that automatically deducts exact quantities when an order is placed — so you always know your real food cost percentage, not a guess.