Australian menu prices shown to customers should be GST-inclusive, but your food cost % should be calculated on net (ex-GST) revenue.
This calculator keeps both numbers clean, so you can reprice fast without losing margin.
Quick Summary
- Net price (ex-GST) = Menu price ÷ 1.10
- Menu price = Food cost per serving ÷ Target food cost %
- Use ABS CPI to decide how often to reprice
Who This Is For
- Cafe owners
- Bakeries and pastry shops
- Takeaway and quick service venues
- Small multi-site groups
What You Need
- Food cost per serving (AUD)
- Target food cost % (example: 30%)
- Current menu price (AUD, GST-inclusive)
- Top 5 ingredient prices from your suppliers
GST-Inclusive Pricing Calculator
Net (ex-GST) price = Menu price ÷ 1.10
Menu price = Food cost per serving ÷ Target food cost %Use the net price for food cost % calculations. Use the menu price for guest-facing pricing.
Step-by-Step
- Update ingredient costs
- Calculate food cost per serving
- Pick a target food cost %
- Divide cost by target % to get a net price
- Multiply net price by 1.10 to get the GST-inclusive menu price
- Round to a clear price point
Example (Australia, AUD)
- Food cost per serving: A$3.90
- Target food cost %: 30%
Net price = A$3.90 ÷ 0.30 = A$13.00
Menu price (incl GST) = A$13.00 x 1.10 = A$14.30Round to A$14.50 for menu simplicity.
GST Split Example
| Menu price (incl GST) | Net price (ex-GST) | GST portion |
|---|---|---|
| A$11.00 | A$10.00 | A$1.00 |
| A$16.50 | A$15.00 | A$1.50 |
| A$22.00 | A$20.00 | A$2.00 |
CPI Benchmark (Australia, December 2025, released 2026-01-28)
Use CPI as your monthly signal for price review cadence.
| CPI category (12-month change) | Rate |
|---|---|
| Meals out and takeaway food | 3.5% |
| Food and non-alcoholic beverages | 3.4% |
| Non-alcoholic beverages | 4.0% |
| Bakery products | 2.9% |
If your ingredient costs are rising faster than CPI, move to a monthly pricing review.
Local Playbook: Melbourne CBD vs Suburban Perth
Use the same formula, but do not force one pricing posture across different demand patterns.
| Trading context | Typical pressure | Practical move |
|---|---|---|
| Melbourne CBD weekday lunch-heavy site | Higher peak-hour labor intensity and stronger convenience demand | Protect margin on core lunch SKUs first; keep discounting focused on slow dayparts only |
| Suburban Perth family dinner mix | Higher basket size at night and stronger value sensitivity | Build bundle ladders first and move premium add-ons separately from core items |
This keeps your menu architecture aligned with how local demand actually behaves.
Price Rounding Ladder (Australia)
Choose a ladder and keep it consistent.
- A$6.50, A$6.90
- A$8.50, A$8.90
- A$11.00, A$11.50
- A$14.50, A$14.90
- A$18.50, A$18.90
Quick Adjustment Scenarios
If Your Supplier Raises Prices 8%
- Old cost: A$3.50
- New cost: A$3.78
- Target food cost: 30%
Net price = A$3.78 ÷ 0.30 = A$12.60
Menu price (incl GST) = A$12.60 x 1.10 = A$13.86Round to A$13.90 or A$14.50 based on your ladder.
If You Reduce Portion Size
Portion changes can protect margin, but track guest feedback and repeat visits.
Menu Engineering Quick Pass
- Stars: High margin + high popularity
- Plowhorses: Low margin + high popularity
- Puzzles: High margin + low popularity
- Dogs: Low margin + low popularity
Raise price on plowhorses first. Small changes on top sellers move margin fastest.
Delivery and Packaging Notes
- Add packaging cost per item
- Add delivery commission % to delivery price only
- Recalculate food cost % on delivery items
If delivery margin drops 5+ points, create a separate delivery price tier.
Monthly Routine
- Update ingredient costs
- Recalculate food cost % on net sales (ex-GST)
- Flag items 3+ points above target
- Check prime cost trend (food + labor)
- Review delivery vs dine-in pricing
Common Mistakes
- Calculating food cost % on GST-inclusive prices
- Forgetting add-ons and modifiers
- Mixing dine-in and delivery pricing data
- Setting prices without a target %
FAQ
Do I always have to show GST-inclusive prices?
Yes for consumer menus. Total price shown to customers must include GST.
What if an item is GST-free?
Some food items are GST-free. If an item is GST-free, net price equals menu price. Confirm with the ATO if you are unsure.
Should I use weekly or monthly price checks?
If your top ingredients move often, monthly checks are safer than quarterly.
Related Guides
- Australia Menu Pricing Guide
- Australia Menu Price Rounding Guide
- Australia Food Cost Calculator
- 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.