Act on the result
Review low-contribution high-volume items and high-burden items before changing price or placement.
Educational only: Business decision support, not accounting, tax or legal advice.
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Update policy: Reviewed when formulas or official dependencies change.
Scope: Market-neutral small-business planning using your own assumptions.
What this planner helps you decide
Best for
Restaurant operators comparing item contribution with sales mix and preparation burden.
Outputs
Item contribution, weighted menu contribution and the effect of the entered mix scenario.
Start here
Enter menu prices, direct costs and observed item volumes from the same service period.
Use a different tool when: Do not use this to reconcile food, beverage and labour cost against restaurant sales; use Restaurant Prime Cost Planner for that decision. Use this tool to choose menu items and pricing from item-level contribution, popularity and operational burden.
Profit & break-even
Restaurant Menu Profitability: item contribution
Item contribution, weighted menu contribution and the effect of the entered mix scenario.
Amounts use the same currency as your inputs. No currency conversion is performed.
Industry decision result
See which menu item contributes most and the price each item needs to protect the entered margin. Review every output on the same entered business basis.
- Total menu revenue
- Total direct menu cost
- Total menu contribution
- Menu contribution margin
- Signature price required at target
- Second-item price required at target
Scenario comparison
Each row names the assumption axis changed from the baseline.
ScenarioResultDifference
Current industry scenario6,622.48Baseline
Lower Signature item menu price5,695.12-927.36
Higher Signature item menu price7,549.84927.36
Save these results, change an input, then compare the updated figures with this baseline.
The baseline is temporary in this tab and is not added to shared scenario links or generated reports.
Calculation details
View calculation detailsView the formulas and inputs used for these results.
Total menu revenue
Total menu revenue
sum(item units sold * item price)15,970 , ex taxResult15,970.00
Uses the named industry records and reports this output, ex tax. The shared engine retains full precision; display rounding never feeds the calculation.
Restaurant Menu Profitability Planner formulas →Inputs used by these formula steps
- Total menu revenueSignature Units Sold
- 420
- Total menu revenueSignature Selling Price Ex Tax
- 24
- Total menu revenueSignature Ingredient Cost Per Unit Ex Tax
- 6.2
- Total menu revenueSignature Labour Minutes Per Unit
- 9
- Total menu revenueSignature Packaging Cost Per Unit Ex Tax
- 0.8
- Total menu revenueSignature Channel Fee Rate
- 0.08
- Total menu revenueSignature Waste Rate
- 0.06
- Total menu revenueSecond Units Sold
- 310
- Total menu revenueSecond Selling Price Ex Tax
- 19
- Total menu revenueSecond Ingredient Cost Per Unit Ex Tax
- 4.7
- Total menu revenueSecond Labour Minutes Per Unit
- 7
- Total menu revenueSecond Packaging Cost Per Unit Ex Tax
- 0.55
- Total menu revenueSecond Channel Fee Rate
- 0.03
- Total menu revenueSecond Waste Rate
- 0.04
- Total menu revenueLoaded Kitchen Labour Cost Per Hour Ex Tax
- 36
- Total menu revenueTarget Contribution Margin
- 0.32
Total direct menu cost
Total direct menu cost
sum(waste-adjusted ingredients + labour + packaging + channel fees)9,347.52 , ex taxResult9,347.52
Uses the named industry records and reports this output, ex tax. The shared engine retains full precision; display rounding never feeds the calculation.
Restaurant Menu Profitability Planner formulas →Inputs used by these formula steps
- Total direct menu costSignature Units Sold
- 420
- Total direct menu costSignature Selling Price Ex Tax
- 24
- Total direct menu costSignature Ingredient Cost Per Unit Ex Tax
- 6.2
- Total direct menu costSignature Labour Minutes Per Unit
- 9
- Total direct menu costSignature Packaging Cost Per Unit Ex Tax
- 0.8
- Total direct menu costSignature Channel Fee Rate
- 0.08
- Total direct menu costSignature Waste Rate
- 0.06
- Total direct menu costSecond Units Sold
- 310
- Total direct menu costSecond Selling Price Ex Tax
- 19
- Total direct menu costSecond Ingredient Cost Per Unit Ex Tax
- 4.7
- Total direct menu costSecond Labour Minutes Per Unit
- 7
- Total direct menu costSecond Packaging Cost Per Unit Ex Tax
- 0.55
- Total direct menu costSecond Channel Fee Rate
- 0.03
- Total direct menu costSecond Waste Rate
- 0.04
- Total direct menu costLoaded Kitchen Labour Cost Per Hour Ex Tax
- 36
- Total direct menu costTarget Contribution Margin
- 0.32
Total menu contribution
Total menu contribution
total revenue - total direct cost6,622.48 , ex taxResult6,622.48
Uses the named industry records and reports this output, ex tax. The shared engine retains full precision; display rounding never feeds the calculation.
Restaurant Menu Profitability Planner formulas →Inputs used by these formula steps
- Total menu contributionSignature Units Sold
- 420
- Total menu contributionSignature Selling Price Ex Tax
- 24
- Total menu contributionSignature Ingredient Cost Per Unit Ex Tax
- 6.2
- Total menu contributionSignature Labour Minutes Per Unit
- 9
- Total menu contributionSignature Packaging Cost Per Unit Ex Tax
- 0.8
- Total menu contributionSignature Channel Fee Rate
- 0.08
- Total menu contributionSignature Waste Rate
- 0.06
- Total menu contributionSecond Units Sold
- 310
- Total menu contributionSecond Selling Price Ex Tax
- 19
- Total menu contributionSecond Ingredient Cost Per Unit Ex Tax
- 4.7
- Total menu contributionSecond Labour Minutes Per Unit
- 7
- Total menu contributionSecond Packaging Cost Per Unit Ex Tax
- 0.55
- Total menu contributionSecond Channel Fee Rate
- 0.03
- Total menu contributionSecond Waste Rate
- 0.04
- Total menu contributionLoaded Kitchen Labour Cost Per Hour Ex Tax
- 36
- Total menu contributionTarget Contribution Margin
- 0.32
Menu contribution margin
Menu contribution margin
total contribution / total revenue0.41 decimal rateResult41.5%
Uses the named industry records and reports this output in decimal rate. The shared engine retains full precision; display rounding never feeds the calculation.
Restaurant Menu Profitability Planner formulas →Inputs used by these formula steps
- Menu contribution marginSignature Units Sold
- 420
- Menu contribution marginSignature Selling Price Ex Tax
- 24
- Menu contribution marginSignature Ingredient Cost Per Unit Ex Tax
- 6.2
- Menu contribution marginSignature Labour Minutes Per Unit
- 9
- Menu contribution marginSignature Packaging Cost Per Unit Ex Tax
- 0.8
- Menu contribution marginSignature Channel Fee Rate
- 0.08
- Menu contribution marginSignature Waste Rate
- 0.06
- Menu contribution marginSecond Units Sold
- 310
- Menu contribution marginSecond Selling Price Ex Tax
- 19
- Menu contribution marginSecond Ingredient Cost Per Unit Ex Tax
- 4.7
- Menu contribution marginSecond Labour Minutes Per Unit
- 7
- Menu contribution marginSecond Packaging Cost Per Unit Ex Tax
- 0.55
- Menu contribution marginSecond Channel Fee Rate
- 0.03
- Menu contribution marginSecond Waste Rate
- 0.04
- Menu contribution marginLoaded Kitchen Labour Cost Per Hour Ex Tax
- 36
- Menu contribution marginTarget Contribution Margin
- 0.32
Signature price required at target
Signature price required at target
signature non-fee cost / (1 - channel fee - target margin)21.33 , ex taxResult21.33
Uses the named industry records and reports this output, ex tax. The shared engine retains full precision; display rounding never feeds the calculation.
Restaurant Menu Profitability Planner formulas →Inputs used by these formula steps
- Signature price required at targetSignature Units Sold
- 420
- Signature price required at targetSignature Selling Price Ex Tax
- 24
- Signature price required at targetSignature Ingredient Cost Per Unit Ex Tax
- 6.2
- Signature price required at targetSignature Labour Minutes Per Unit
- 9
- Signature price required at targetSignature Packaging Cost Per Unit Ex Tax
- 0.8
- Signature price required at targetSignature Channel Fee Rate
- 0.08
- Signature price required at targetSignature Waste Rate
- 0.06
- Signature price required at targetSecond Units Sold
- 310
- Signature price required at targetSecond Selling Price Ex Tax
- 19
- Signature price required at targetSecond Ingredient Cost Per Unit Ex Tax
- 4.7
- Signature price required at targetSecond Labour Minutes Per Unit
- 7
- Signature price required at targetSecond Packaging Cost Per Unit Ex Tax
- 0.55
- Signature price required at targetSecond Channel Fee Rate
- 0.03
- Signature price required at targetSecond Waste Rate
- 0.04
- Signature price required at targetLoaded Kitchen Labour Cost Per Hour Ex Tax
- 36
- Signature price required at targetTarget Contribution Margin
- 0.32
Second-item price required at target
Second-item price required at target
second-item non-fee cost / (1 - channel fee - target margin)14.84 , ex taxResult14.84
Uses the named industry records and reports this output, ex tax. The shared engine retains full precision; display rounding never feeds the calculation.
Restaurant Menu Profitability Planner formulas →Inputs used by these formula steps
- Second-item price required at targetSignature Units Sold
- 420
- Second-item price required at targetSignature Selling Price Ex Tax
- 24
- Second-item price required at targetSignature Ingredient Cost Per Unit Ex Tax
- 6.2
- Second-item price required at targetSignature Labour Minutes Per Unit
- 9
- Second-item price required at targetSignature Packaging Cost Per Unit Ex Tax
- 0.8
- Second-item price required at targetSignature Channel Fee Rate
- 0.08
- Second-item price required at targetSignature Waste Rate
- 0.06
- Second-item price required at targetSecond Units Sold
- 310
- Second-item price required at targetSecond Selling Price Ex Tax
- 19
- Second-item price required at targetSecond Ingredient Cost Per Unit Ex Tax
- 4.7
- Second-item price required at targetSecond Labour Minutes Per Unit
- 7
- Second-item price required at targetSecond Packaging Cost Per Unit Ex Tax
- 0.55
- Second-item price required at targetSecond Channel Fee Rate
- 0.03
- Second-item price required at targetSecond Waste Rate
- 0.04
- Second-item price required at targetLoaded Kitchen Labour Cost Per Hour Ex Tax
- 36
- Second-item price required at targetTarget Contribution Margin
- 0.32
Inputs used
- Signature item units sold (whole portions/review period)
- 420
- Signature item menu price (/portion, ex tax)
- 24
- Signature item ingredient cost (/portion, ex tax)
- 6.2
- Signature item labour minutes (minutes/portion)
- 9
- Signature item packaging cost (/portion, ex tax)
- 0.8
- Signature item channel-fee rate (decimal fraction of signature-item revenue)
- 0.08
- Signature item waste rate (decimal fraction of signature-item ingredient requirement lost)
- 0.06
- Second item units sold (whole portions/review period)
- 310
- Second item menu price (/portion, ex tax)
- 19
- Second item ingredient cost (/portion, ex tax)
- 4.7
- Second item labour minutes (minutes/portion)
- 7
- Second item packaging cost (/portion, ex tax)
- 0.55
- Second item channel-fee rate (decimal fraction of second-item revenue)
- 0.03
- Second item waste rate (decimal fraction of second-item ingredient requirement lost)
- 0.04
- Loaded kitchen labour cost per hour (/hour, ex tax)
- 36
- Target contribution margin (decimal fraction of item revenue)
- 0.32
Open this calculator with preset values
This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.
Scenario links contain only allowlisted numeric and closed-choice inputs shown in the URL; Margin101 excludes free text and identifying fields. Anyone you share the URL with can read those numbers, so do not include private or identifying data.
| Parameter | Meaning | Unit | Allowed values | Presence | Default |
|---|---|---|---|---|---|
| loadedKitchenLabourCostPerHourExTax | Wages and on-costs for one preparation or service hour. Keep every amount on the same ex-tax currency basis. | currency units/hour, ex tax | 0 to 10000000 | Required | 36 |
| secondChannelFeeRate | Share of comparison-item revenue paid to ordering channels. | decimal fraction of second-item revenue | 0 to 1 | Required | 0.03 |
| secondIngredientCostPerUnitExTax | Recipe ingredient cost per portion before waste. Keep every amount on the same ex-tax currency basis. | currency units/portion, ex tax | 0 to 10000000 | Required | 4.7 |
| secondLabourMinutesPerUnit | Preparation and service minutes per comparison portion. | minutes/portion | 0 to 1440 | Required | 7 |
| secondPackagingCostPerUnitExTax | Packaging and serving consumables per portion. Keep every amount on the same ex-tax currency basis. | currency units/portion, ex tax | 0 to 10000000 | Required | 0.55 |
| secondSellingPriceExTax | Ex-tax price per comparison portion. Keep every amount on the same ex-tax currency basis. | currency units/portion, ex tax | 0 to 10000000 | Required | 19 |
| secondUnitsSold | Whole portions sold for the comparison item. | whole portions/review period | 0 to 100000000 | Required | 310 |
| secondWasteRate | Expected ingredient loss applied to the comparison recipe. | decimal fraction of second-item ingredient requirement lost | 0 to 1 | Required | 0.04 |
| signatureChannelFeeRate | Share of revenue paid to ordering or delivery channels. | decimal fraction of signature-item revenue | 0 to 1 | Required | 0.08 |
| signatureIngredientCostPerUnitExTax | Recipe ingredient cost per portion before waste. Keep every amount on the same ex-tax currency basis. | currency units/portion, ex tax | 0 to 10000000 | Required | 6.2 |
| signatureLabourMinutesPerUnit | Preparation and service minutes per portion. | minutes/portion | 0 to 1440 | Required | 9 |
| signaturePackagingCostPerUnitExTax | Packaging and serving consumables per portion. Keep every amount on the same ex-tax currency basis. | currency units/portion, ex tax | 0 to 10000000 | Required | 0.8 |
| signatureSellingPriceExTax | Ex-tax price per portion. Keep every amount on the same ex-tax currency basis. | currency units/portion, ex tax | 0 to 10000000 | Required | 24 |
| signatureUnitsSold | Whole portions sold in the review period. | whole portions/review period | 0 to 100000000 | Required | 420 |
| signatureWasteRate | Expected ingredient loss applied to the recipe cost. | decimal fraction of signature-item ingredient requirement lost | 0 to 1 | Required | 0.06 |
| targetContributionMargin | Margin each required item price should protect after direct costs and channel fees. | decimal fraction of item revenue | 0 to 0.99 | Required | 0.32 |
Restaurant Menu Profitability: item contribution
Use contribution and sales mix together; the highest-margin item is not automatically the best menu priority.
Formula summary
- Primary formula
- total revenue - total direct cost
Data used here
- The estimate uses your inputs and the general business formula documented in the methodology.
Decision checks
Stress-test the decision
Retest a lower selling price and a different item mix without changing every assumption together.
When this estimate can be misleading
- Industry costs, tax, contract terms, capacity and targets are entered by the user; no market benchmark is embedded.
- Use records from one consistent period and one ex-tax currency basis where money applies.
- This is educational business decision support, not accounting, tax, legal or financial advice.
- Use contribution and sales mix together; the highest-margin item is not automatically the best menu priority.
Educational estimate, not advice. See all assumptions & limitations →
Related reading
Guides to interpret the decision and its assumptions.
- Restaurant Economics: From Menu Price to Operating Profit
Trace menu price through contribution, operating capacity and period costs without confusing a dish margin with operating profit.
Read guide - Menu Engineering Without a Misleading Popularity Matrix
Compare item contribution and observed sales mix while keeping popularity thresholds and demand claims explicit.
Read guide
Frequently asked questions
How do I choose menu items and pricing from item-level contribution, popularity and operational burden?
Review low-contribution high-volume items and high-burden items before changing price or placement.
Which planning assumptions should I stress-test?
Compare a plausible alternative scenario and verify the decision-critical assumption that changes the plan most.