How to calculate a menu price from cost: the multiplier table
Menu price before VAT = food cost × multiplier, and the multiplier is 1 ÷ your target food cost %: 3x gives a 33.3% food cost (66.7% GP), 3.3x gives 30.3% (69.7% GP) and 4x gives 25% (75% GP). In the UK you then add VAT at the 20% standard rate (GOV.UK VAT rates), so a £3.85 plate at 3x is £11.55 before VAT and £13.86 on the menu.
The multiplier table
| Multiplier on cost | Food cost % | GP % | Multiplier for the inc-VAT menu price | £3.85 plate: ex VAT | £3.85 plate: on the menu |
|---|---|---|---|---|---|
| 2.5x | 40.0% | 60.0% | 3.00x | £9.63 | £11.55 |
| 3x | 33.3% | 66.7% | 3.60x | £11.55 | £13.86 |
| 3.3x | 30.3% | 69.7% | 3.96x | £12.71 | £15.25 |
| 3.5x | 28.6% | 71.4% | 4.20x | £13.48 | £16.17 |
| 4x | 25.0% | 75.0% | 4.80x | £15.40 | £18.48 |
| 4.5x | 22.2% | 77.8% | 5.40x | £17.33 | £20.79 |
| 5x | 20.0% | 80.0% | 6.00x | £19.25 | £23.10 |
Method: food cost % = 1 ÷ multiplier; GP % = 1 − food cost %; menu price = cost × multiplier × 1.2 for a standard-rated dish. All figures computed, not surveyed. £3.85 is the example plate cost used on the GP calculator.
Which multiplier fits a UK menu?
The UKHospitality × Christie & Co Benchmarking Report 2022 found food GP of 65.9–69% in every segment it surveyed, which is a multiplier of roughly 2.9x to 3.2x on cost before VAT (1 ÷ 0.341 = 2.93; 1 ÷ 0.31 = 3.23). A flat 4x across a whole menu (75% GP) is above anything in that survey. Use the higher multipliers on cheap-to-make items such as chips, soup and hot drinks, and accept a lower one on expensive proteins, then check the blended figure across what you actually sell.
Three mistakes with multipliers
- Multiplying the inc-VAT cost. Most food you buy is zero-rated; if you are VAT-registered and recover VAT, cost on ex-VAT prices.
- Forgetting the VAT on the selling side. 3x cost is a 66.7% GP only on the price before VAT. Put 3x cost on the menu with no VAT added and the dish actually earns 60% GP (3 ÷ 1.2 = 2.5x before VAT).
- One multiplier for everything. Cash margin pays the bills, not percentages: a £22 steak at 60% GP leaves more money than a £6 soup at 80%.
Questions chefs ask
What does 3 times food cost mean?
Selling a dish for three times what its ingredients cost, before VAT. Food cost is then one third of the price (33.3%) and GP is 66.7%.
How do I go from a GP target to a multiplier?
Multiplier = 1 ÷ (1 − GP). For 70% GP: 1 ÷ 0.30 = 3.33x on cost before VAT, or 4.0x including 20% VAT.
Should cold takeaway items use the same multiplier?
Cold takeaway food is usually zero-rated (HMRC VAT Notice 709/1), so you keep the whole price: skip the × 1.2 step for those items, but charge the VAT if they are eaten in.
Do it for one dish with the menu price calculator, or read how to price a menu to a target food cost percentage.
Sources
More chef questions: Food cost % by venue type · Pub food and drink GP mix · Portions per kg · Cooked vs raw weight · Kitchen energy cost per dish · Kitchen staff cost 2026/27 · Sunday roast cost per cover · Prep par and shelf life · UK wholesale staple prices
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