How to price a café menu item
Price from cost, not from the café down the road. The cost sets the minimum; the market sets the ceiling.
The item cost is everything in one portion plus an allowance for waste. In a café, that allowance has to cover more than kitchen trim. Cabinet food that's still there at 3pm gets discounted, given to staff or binned, and its cost has to be carried by the items that did sell.
A worked example
The calculator opens with a ham and cheese croissant: a $1.10 butter croissant, $0.85 of ham, $0.45 of Swiss cheese and $0.30 of tomato, greens and mustard, which comes to $2.70. With an 8% allowance for what doesn't sell, the real cost is $2.92.
At a 33% target that gives $8.85 before tax, which rounds to a menu price of $9.00: a real food cost of 32.4% and $6.08 profit on every one sold. In New Zealand, with 15% GST on top, the same item rounds to $10.50. On a delivery app at 30% commission with $0.40 of packaging, it needs to list at about $13.50 to earn the same $6.08; listed at the counter price of $9.00, it would earn $2.98.
Food cost targets for cafés
| Item type | Typical food cost |
|---|---|
| Made-to-order breakfasts and brunch | 28–32% |
| Cabinet food: toasties, wraps, salads | 30–35% |
| House-baked slices, muffins, banana bread | 15–25% |
| Bought-in pastries and cakes | 35–45% |
| Smoothies and fresh juices | 20–30% |
Across the whole food side, 28–35% is the usual benchmark. House baking is where most cafés make their best food margin; bought-in cabinet items are where most lose it, because they're priced to match what the supplier suggests rather than worked back from cost. Coffee runs on different numbers again: the coffee cost calculator works those out.
Three things that make café prices wrong
Ignoring what goes in the bin
A toastie that costs $2.70 to make but sells only nine times out of ten really costs $3.00 per sale. Track two weeks of end-of-day waste by item and you'll know your real allowance. Items with high waste either need a higher price, a smaller batch, or a later bake.
Pricing on the GST-inclusive figure
If your menu shows prices including GST, the tax isn't yours. A $12.50 item in New Zealand is really a $10.87 sale. Enter your tax rate in the calculator so the food cost percentage is worked out on the money you keep.
One price for the counter and the apps
Delivery commission comes off the top. On a typical café item, listing at the counter price on a delivery app leaves well under half the normal profit. Many cafés settle on app prices 20–30% higher and accept a slightly thinner margin there; at least know what that costs.
When the market won't take the price
If the price the calculator gives you is above what customers will pay, don't drop the price. Change the item: a smaller portion of the expensive ingredient, a cheaper supplier, a house-made version of something bought in, or a batch size that cuts end-of-day waste. If none of those work, the item may not belong on the menu. The menu engineering calculator shows which items are worth keeping on sales and profit together.
Our guide to pricing a café menu for profit covers coffee pricing, cabinet pricing and how to put prices up without losing regulars. If food cost is running high overall, see how to reduce café food cost.
Frequently asked questions
How do you price a café menu item?
Add up what goes into one portion, add an allowance for waste and unsold cabinet stock, then divide by your target food cost. A cabinet item costing $3.00 at a 33% target needs to sell for about $9.10 before tax.
What food cost percentage should a café aim for?
Most cafés aim for 28–35% across food. Made-to-order breakfasts usually sit around 28–32%, cabinet food 30–35%, and bought-in pastries often run 40% or more unless they're priced up.
How much waste should I allow for cabinet food?
Allow for what you throw out or discount at the end of the day, not just kitchen trim. For many cafés that's 5–15% of cabinet production. Track it for two weeks and use your real figure.
Should café prices be higher on Uber Eats and other delivery apps?
Usually yes. After a 30% commission and packaging, a café item listed at the counter price earns well under half its normal profit. The delivery section of the calculator shows the price that keeps your profit per item the same.