Australian menu prices shown to consumers should include GST, but your food cost % should be calculated on net (ex-GST) revenue.
This calculator keeps the math clean for cafes, bakeries, and takeaway shops.
GST-Aware Formula
Net (ex-GST) price = Menu price / 1.10
Food cost % = Ingredient cost per serving / Net price x 100Example (Australia)
- Menu price: A$11.00
- Net price (ex-GST): A$10.00
- Ingredient cost per serving: A$3.20
A$3.20 / A$10.00 x 100 = 32%Local Scenario: Melbourne CBD vs Suburban Perth
| Trading context | Typical pressure | Practical move |
|---|---|---|
| Melbourne CBD weekday lunch-focused cafe | Short peak windows and faster wage burn during rush | Keep high-volume lunch SKUs tightly costed and refresh portions weekly |
| Suburban Perth neighbourhood cafe | More stable daypart mix but stronger value sensitivity | Use bundle and add-on design before broad price jumps |
CPI Reality Check (Australia)
ABS CPI data for December 2025 (released in late January 2026) shows meals out and takeaway food rising 3.5% year over year. That is a practical signal to run monthly food cost checks instead of waiting for quarterly menu rewrites.
Related Guides
- Australia Menu Pricing Calculator
- Australia Menu Pricing Guide
- Recipe Costing Guide
- Food Cost Ratio Guide
- Prime Cost Guide
- Menu Price Review Checklist
Want This Done Automatically?
KitchenCost recalculates recipe costs, food cost %, and price targets as your ingredient prices change.
If you want a faster way to protect margin, try KitchenCost.