The menu pricing formula for Indian restaurants, with ₹ examples.
Why is the Butter Chicken ₹410 and not ₹390? The formula is one line — recipe cost divided by your target food-cost percentage. Everything else is a check: Half and Full, GST, the aggregator's cut, and the ₹9 ending. Here is the whole sum, worked on a real menu.
Price = recipe cost ÷ target food-cost %.
That is the whole formula. Decide what share of the menu price you are willing to spend on the food itself — in India, casual dining runs at 28–35%, cafés and QSRs a little under, fine dining up to 40% — and divide each dish's ingredient cost by it.
| Dish | Recipe cost | ÷ 32% | Rounded to | Actual food cost |
|---|---|---|---|---|
| Butter Chicken (Full) | ₹125 | ₹391 | ₹410 | 30% |
| Paneer Tikka Masala | ₹98 | ₹306 | ₹320 | 31% |
| Butter Naan | ₹9 | ₹28 | ₹40 | 23% |
| Sweet Lassi | ₹14 | ₹44 | ₹50 | 28% |
| Masala Chai | ₹6 | ₹19 | ₹30 | 20% |
Illustrative recipe costs for a mid-city casual restaurant; your own numbers go in the second column. The menu prices are the ones on the sample menu in the register clips on this site.
Notice what the table already shows: the bread and the drinks carry the curry. That is not a mistake — it is how every Indian menu works, and knowing it is the difference between a discount on naan (harmless) and a discount on Butter Chicken (expensive).
Recipe cost imandaari se — waste ke saath.
The formula is only as good as the cost you put in, and the cost most owners put in is the raw ingredient bill divided by the number of plates they hope to get. Cost it the way the kitchen actually runs:
- Yield, not purchase weight. A kilo of chicken is not a kilo of curry — bones, trim and shrinkage take 25–35%. Cost the cooked yield.
- The gravy base. Cost the pot of makhani base once (tomatoes, butter, cream, cashew, gas) and divide by the ladles it gives. Every dish on that base shares it.
- The things nobody counts. Oil, ghee, spices, salt, the papad and the onion salad on the side, packaging for parcels. Add 8–10% to the ingredient line for them until you have measured.
- Waste. The last three plates of the day that get thrown out are part of the cost of the first twenty. A 5% waste allowance is honest for a curry house.
Keep these costs in a sheet for now — the dashboard has no cost field per dish yet, so the menu report's profit axis is coming rather than here. Its popularity axis and its "never ordered" list work today, which is where the next section comes from.
Half plate — daam aadha nahi, 65–75%.
Half the food is not half the cost. The gas is the same, the cook's ten minutes are the same, the plate and the wash are the same; only the chicken halves. So a Half at 50% of the Full price loses money on every order, and a Half at 65–75% of Full — ₹290 against ₹410 — makes money and still reads as a deal. The guest who orders Half would mostly have skipped the dish at the Full price; the Half is extra sales.
The register should make the portion a one-tap choice with both prices visible, so the cashier never has to remember which is which — and the KOT should say "Half" next to the dish, not in the notes.
Upar se ya andar — bill pe dikhna chahiye.
Most Indian menus show prices before tax and the bill adds 5% GST — 2.5% CGST plus 2.5% SGST, on separate lines. That is what guests expect and what keeps the printed price a round number. An inclusive menu is legal too, as long as the slip still shows the tax; just remember the tax is not yours. An inclusive ₹410 is ₹390.48 of revenue and ₹19.52 for the government, so the food-cost sum has to use ₹390, not ₹410.
The register applies whichever slab you attach to the dish — 5% for most restaurants, 18% inside pricier hotels, or none if you are under the threshold — and freezes it onto each sale, so a slab change next month never rewrites last month's bills. The GST post covers the rates and the ₹20 lakh threshold.
₹410 ka order, ₹300 se kam bacha.
The delivery apps take a commission on the food value, charge 18% GST on that commission, deduct packaging, and often expect you to fund the discount that got the order. The platform fee the guest sees (₹17.58 an order on both apps since March 2026) is paid by the guest, not by you — but everything else is. Work one dish through it:
| Butter Chicken (Full), delivered | ₹ |
|---|---|
| Menu price on the app | 410 |
| Commission at 22% (reported range 18–30%) | −90 |
| GST at 18% on the commission | −16 |
| Packaging (a box, a bag, a spoon) | −15 |
| Your share of a "20% off" offer, if funded by you | −41 |
| Left with you | 248 |
| Recipe cost | −125 |
| Contribution, before rent, staff and gas | 123 |
Commission and packaging figures are the ranges reported publicly in 2026; the 5% GST on the food itself is paid by the platform under section 9(5) and is not in this table. Your own settlement statement is the number that counts — read one line by line once.
The same plate at the table leaves ₹285 after food cost. That is why a dish can be a star in the dining room and a loss on delivery, and why the app price is often set higher than the table price. Know the number before deciding either way.
Straight answers.
Food cost percentage kitna hona chahiye?
Selling price nikalne ka formula kya hai?
Half plate ka daam Full ka aadha hona chahiye?
Should GST be included in the menu price?
Swiggy Zomato pe alag price rakh sakte hain?
How often should I reprice?
Run it 3 months, then pay for it.
Three months free, full product, no card. Made in India, for the counter — built inside a running restaurant.