ALSTIG INC

What is plate cost in a restaurant?

The recipe-level number behind every menu price — and the one most operators calculate without yield-loss adjustments.

Plate cost is the total ingredient cost of a single menu item as served, with adjustments applied for yield loss (trim, cooking shrinkage, waste).

Formula: Plate cost = Σ (Ingredient AP cost ÷ Yield %) × Recipe quantity, summed across all ingredients in the recipe.

Why plate cost is not just "recipe ingredient cost"

The most common operator error is calculating plate cost using as-purchased (AP) prices without applying yield factors. A recipe specifying 8 oz of chicken at $4.50/lb AP is reported as $2.25 in plate cost — but the 8 oz on the plate likely required 9–10 oz of as-purchased product to deliver, after trim and cooking loss. The true plate cost is closer to $2.75–$2.85, a 22–27% understatement.

Operators who skip the yield adjustment routinely show "menu food cost" reports 2–4 points better than their actual P&L food cost percentage. The gap is yield loss the recipe report didn't account for.

How to calculate plate cost correctly

  1. List every ingredient in the recipe, with its as-purchased unit cost and recipe quantity.
  2. Apply yield factor for each ingredient — divide AP cost by yield % to get edible-portion cost. (Yield factors: 5–10% loss on most proteins, 10–20% on produce, plus 15–30% additional cooking loss on roasted/braised items.)
  3. Multiply edible-portion cost by recipe quantity for each ingredient.
  4. Sum across ingredients.
  5. Add allocated overhead if the operation tracks variable kitchen overhead per plate (gas, oils, seasonings used in trace amounts).

Example: a 6 oz chicken-breast plate. AP cost: $4.50/lb. Yield: 75% (after trim + cook loss). Edible-portion cost = $4.50 ÷ 0.75 = $6.00/lb. 6 oz = 0.375 lb. Chicken plate-cost contribution = 0.375 × $6.00 = $2.25. Add side vegetable (with its own yield), sauce, garnish, and you have the full plate cost.

Plate cost calculator

Compare what you'd report as plate cost using as-purchased prices vs. the true plate cost after yield-factor adjustment. The gap is what's missing from your menu-pricing math when yield gets skipped.

Plate cost calculator
AP-only plate cost (wrong) $1.69
True plate cost (with yield) $2.25

Yield-loss gap: +33.3%. Skipping yield understates plate cost by this much. Menu pricing built on AP-only numbers will run food cost above target.

Yield-factor reference: 5–10% loss on most proteins, 10–20% on produce, plus 15–30% additional cooking loss on roasted/braised items.

Plate cost as the menu-pricing input

Standard menu-pricing math: divide plate cost by target food cost percentage to get menu price. If plate cost is $7.20 and target food cost is 30%, menu price = $7.20 ÷ 0.30 = $24. The plate-cost number has to be accurate or the menu price math compounds the error: a 25% understated plate cost yields a menu price that delivers 38% food cost in practice instead of the targeted 30%.

Common operator mistakes

Related concepts

Defined by Ben Mouton, founder of ALSTIG INC and 14-year restaurant operator. Browse the full restaurant operations glossary or read more articles.