UK Restaurant Food Cost Calculator (2026): Formula + VAT Example

If you are guessing food cost, you are guessing pricing.

This quick calculator gives you the exact food cost % for any menu item and shows how to handle VAT-inclusive prices in the UK.

Quick Summary Formula

Food cost % = Ingredient cost per serving ÷ Net menu price × 100

Step-by-Step (UK)

1. Add up the ingredient cost for one serving
2. Convert your VAT-inclusive menu price to net price
3. Divide cost by net price and compare to your target

VAT Example

If your menu shows £14.40, the net price is:

£14.40 ÷ 1.20 = £12.00

Now calculate food cost % using £12.00, not £14.40.

Worked Example

• Ingredient cost per serving: £3.60
• Menu price shown to guests: £14.40
• Net menu price: £12.00

£3.60 ÷ £12.00 × 100 = 30%

CPIH Reality Check (UK)

ONS CPIH annual rate (December 2025):

• All items: +3.6%
• Food and non-alcoholic beverages: +4.5%
• Restaurants and hotels: +3.8%

If your ingredient costs are moving faster than these rates, review pricing sooner.

Related Guides

• UK Restaurant Menu Pricing Guide
• UK Restaurant VAT Pricing Guide
• UK Restaurant Labour Cost Calculator
• UK Restaurant Prime Cost Calculator
• Recipe Costing Guide
• Prime Cost Guide

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.

Sources

• ONS — Consumer price inflation, UK: December 2025 (CPIH Table 2)
• GOV.UK — How much VAT you must charge