If you are guessing menu prices, you are guessing margin.
This Canada menu pricing calculator combines a food-cost formula with GST/HST rate guidance and a CPI benchmark for timing your reviews.
Quick Summary
- Menu price = Food cost per serving ÷ Target food cost %
- Apply the correct GST/HST or GST + PST/QST rate by province
- Use Statistics Canada CPI to decide review cadence
- Keep pricing decisions on pre-tax math, then convert to checkout totals
What You Need
- Food cost per serving (CAD)
- Target food cost % (example: 28% to 32%)
- Province or territory for tax rate
- Current menu price (for comparison)
Step 1: Pick the Right Tax Rate
Use the CRA rate table below as a quick reference. If your province uses PST or QST, add that on top of the 5% GST. Validate with your place-of-supply setup so POS tax behavior matches the province where the sale is deemed to occur.
| Province or territory | GST/HST | PST or QST |
|---|---|---|
| Alberta | 5% | 0% |
| British Columbia | 5% | 7% |
| Manitoba | 5% | 7% |
| New Brunswick | 15% | N/A |
| Newfoundland and Labrador | 15% | N/A |
| Northwest Territories | 5% | 0% |
| Nova Scotia | 14% | N/A |
| Nunavut | 5% | 0% |
| Ontario | 13% | N/A |
| Prince Edward Island | 15% | N/A |
| Quebec | 5% | 9.975% |
| Saskatchewan | 5% | 6% |
| Yukon | 5% | 0% |
Step 2: Menu Pricing Calculator
Menu price (before tax) = Food cost per serving ÷ Target food cost %
Final price (after tax) = Menu price x (1 + tax rate)If your menu prices are listed before tax, use the final price formula to show guests the total.
Example (Ontario, CAD)
- Food cost per serving: CA$4.50
- Target food cost %: 30%
- HST rate: 13%
Menu price = CA$4.50 ÷ 0.30 = CA$15.00
Final price = CA$15.00 x 1.13 = CA$16.95Round the menu price to CA$15.50 or CA$15.99 if needed.
CPI Benchmark (Canada, December 2025, released 2026-01-19)
Use CPI as a signal for how often to reprice.
| CPI category (12-month change) | Rate |
|---|---|
| Food purchased from restaurants | 8.5% |
| Food purchased from stores | 5.0% |
| All-items CPI | 2.4% |
When restaurant food inflation runs ahead of grocery inflation, monthly reviews protect margin better than annual changes.
Local Playbook: Toronto Core vs Calgary Suburban
The same tax formula works nationally, but pricing execution should follow local order patterns.
| Trading context | Typical pressure | Practical move |
|---|---|---|
| Downtown Toronto weekday lunch-heavy site | Fast lunch peaks and stronger convenience demand | Reprice top lunch SKUs first and keep bundles for shoulder hours |
| Calgary suburban dinner and family mix | Higher evening basket sizes with stronger value checks | Use family-set ladders and add-on pricing before broad menu increases |
Treat these as different operating systems, not one national average.
Price Rounding Ladder (Canada)
Pick a ladder and keep it consistent.
- CA$8.50, CA$8.90
- CA$10.50, CA$10.90
- CA$12.99, CA$13.99
- CA$15.99, CA$16.99
- CA$18.99, CA$19.99
Quick Adjustment Scenarios
If Food Cost Jumps 6%
- Old cost: CA$4.25
- New cost: CA$4.51
- Target food cost: 30%
Menu price = CA$4.51 ÷ 0.30 = CA$15.03Round to your nearest ladder price.
If You Change Portion Size
Smaller portions lower cost, but track guest feedback before changing price.
Menu Engineering Quick Pass
- Stars: High margin + high popularity
- Plowhorses: Low margin + high popularity
- Puzzles: High margin + low popularity
- Dogs: Low margin + low popularity
Start with plowhorses. Small price changes on top sellers move margin fastest.
Delivery and Packaging Notes
- Add packaging cost per item
- Add delivery commission % to delivery pricing only
- Recalculate food cost % for delivery items
If delivery margin drops 5+ points, create a delivery-only price tier.
Monthly Routine
- Update ingredient costs
- Recalculate food cost % for top sellers
- Flag items 3+ points above target
- Check prime cost trend (food + labor)
- Review delivery vs dine-in pricing
Common Mistakes
- Using the wrong tax rate for your province
- Forgetting PST or QST
- Ignoring modifiers and add-ons
- Mixing dine-in and delivery pricing data
FAQ
Do I have to include tax in my menu prices?
Most menus list prices before tax, but confirm local rules and customer expectations.
What about GST-free items?
Some items may be zero-rated. Check CRA guidance if you sell items with special tax status.
How often should I reprice?
If restaurant CPI is above 8%, monthly checks are safer than quarterly.
Related Guides
- Canada Menu Pricing Guide
- Canada Menu Price Rounding Guide
- Canada 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.