Steakhouse Cost Guide: Pricing Ribeye, Filet, and Prime Cuts for Profit

Steakhouses live or die by ounce math.

A 1 oz over-portion on a ribeye can erase your entire side dish margin. A 2-3% yield mistake across prime cuts can wipe out a month of profit.

This guide shows you how to cost steaks the right way, from raw weight to cooked plate cost. It includes yield math, example plates, pricing rules, and a monthly review checklist.

Quick Summary

• Cost steaks by raw weight, trim loss, and cooked yield
• A single ounce error can shift margin by 2-4 points
• Track sides and sauces or your true plate cost is wrong
• Use target food cost % to set price floors, not guesses
• Review top 10 sellers monthly and adjust fast

Why Steakhouse Costing Is Different

Steak is not just another protein. It behaves differently:

1. Trim loss is real. Fat and silver skin can take 6-15% off usable weight
2. Cook loss compounds the math. A 12-18% shrink is common
3. Portion size is visible. Guests notice if a 12 oz steak is really 10 oz
4. Price anchors are high. Small cost errors multiply with premium pricing
5. Sides decide margin. Steaks sell the plate, sides drive profit

You cannot price steak accurately without yield data.

Beef Prices Move Faster Than Your Menu

The US Bureau of Labor Statistics reports the average retail price of all uncooked beef steaks at $12.51/lb in December 2025. Even if your wholesale cost is lower, the trend shows why steak costs swing quickly.

The USDA Economic Research Service reported beef and veal prices were up 16.4% in December 2025 vs. December 2024, while food-away-from-home CPI was up 4.1%. Steakhouse menus cannot wait for annual price changes.

Steak Cost Formula (Raw to Cooked)

1) Raw cost per ounce

Raw cost per oz = Price per lb / 16

2) Usable yield after trim

Usable yield = 1 - trim loss

3) Cooked yield after shrink

Cooked yield = 1 - cook loss

4) Cost per cooked ounce

Cost per cooked oz = Raw cost per oz / (Usable yield x Cooked yield)

5) Full plate cost

Plate cost = (Cost per cooked oz x portion oz) + sides + sauces + garnish

Example 1: 12 oz Ribeye Plate

Assumptions (sample invoice):

• Ribeye cost: $13.50/lb
• Trim loss: 12%
• Cook loss: 15%
• Portion size: 12 oz cooked

Step 1: Raw cost per oz

$13.50 / 16 = $0.84 per oz

Step 2: Yield math

Usable yield = 0.88
Cooked yield = 0.85
Combined yield = 0.748

Step 3: Cost per cooked oz

$0.84 / 0.748 = $1.13 per cooked oz

Step 4: Steak cost

$1.13 x 12 oz = $13.56

Add plate items (example):

• Garlic mashed potatoes: $0.95
• Charred broccolini: $1.10
• Herb butter: $0.35
• Sauce (peppercorn): $0.45

Total plate cost: $16.41

If your target food cost is 30%, the minimum price is:

$16.41 / 0.30 = $54.70

Example 2: 8 oz Filet Plate

Assumptions (sample invoice):

• Filet cost: $19.50/lb
• Trim loss: 6%
• Cook loss: 12%
• Portion size: 8 oz cooked

Cost per cooked oz: $1.47

$1.47 x 8 oz = $11.79

Add sides and sauce: $2.50

Total plate cost: $14.29

At a 28% target food cost:

$14.29 / 0.28 = $51.04

Example 3: 16 oz T-Bone Plate

Assumptions (sample invoice):

• T-bone cost: $12.00/lb
• Trim loss: 10%
• Cook loss: 16%
• Portion size: 16 oz cooked

Cost per cooked oz: $0.99

$0.99 x 16 oz = $15.87

Add sides and sauce: $2.25

Total plate cost: $18.12

At a 32% target food cost:

$18.12 / 0.32 = $56.63

Side Dish and Sauce Costing (Often Ignored)

Steak is the headline, but sides can be 10-18% of the plate cost.

If sides are not costed, your steak margins are wrong.

Pricing Rules That Protect Margin

1. Price steaks from the bottom up. Use yield math, then add sides and sauces.
2. Set a price floor. Never price below your target food cost.
3. Charge for premium add-ons. Lobster tail, truffle butter, and sauces must be priced.
4. Control portion tools. Use scales, portion scoops, and training.
5. Anchor with one hero cut. Price one flagship steak, then ladder up and down.

Steakhouse Food Cost Targets (Starting Points)

These are working targets to start with. Your model and check average decide the final numbers.

If your steak food cost is above 35%, you need a pricing or portion reset.

Yield Control Checklist (Weekly)

• Weigh raw cuts and record trim loss by cut
• Track cooked yield for each steak thickness
• Use portion scales for 8 oz, 12 oz, and 16 oz cuts
• Re-cost steaks when invoice price changes by 3%+
• Audit sides and sauces for portion creep
• Compare actual vs. theoretical food cost monthly

Menu Engineering Tips for Steakhouses

• Protect the mid-tier. Most profit comes from the $38-$48 steaks, not the $85 showpiece.
• Price ladders work. Offer a base cut, a mid-tier, and a premium.
• Bundle smartly. A prix-fixe with a high-margin appetizer can stabilize steak cost.
• Promote add-ons. Butter, sauces, and sides are margin multipliers.

30-Minute Monthly Price Review

• Pull top 10 steak items by sales
• Update invoice prices for core cuts
• Recalculate food cost % with current yield
• Flag items 3+ points above target
• Adjust price or portion size this month
• Review bar mix for margin balance

Related Guides

• Recipe Costing Guide
• Food Cost Ratio Guide
• Loss Rate Guide
• Prime Cost Guide
• Menu Engineering Guide
• Korean BBQ Cost Guide
• BBQ Restaurant Cost Guide
• Burger Restaurant Cost Guide
• Catering Cost Guide

Want This Automated?

KitchenCost recalculates steak costs, yields, and price targets when your beef invoice changes.

If you want to protect steak margins without spreadsheets, try KitchenCost.

Sources

• BLS Average Price Data - All uncooked beef steaks (Dec 2025)
• USDA ERS Food Price Outlook (beef and veal + food-away-from-home CPI)