Marking Up And How To Cost A Item On A School Canteen Menu

Published: 21 January 2014

You need to be able to work out exactly how much each menu item you produce in the canteen will cost.  A good way to control costs is to make recipe cards that describe exactly how to make everything on the menu.  Not only will your customers get a consistent product, you will know how much that product costs you in raw ingredients.

A mark up is a percentage of the total costs of all raw ingredients used, including the packaging.  It is added to cover such costs as labour and utilities.  Generally the mark up used is somewhere between 35% and 45%.  To give healthier choices a competitive edge you could mark up everyday foods and drinks at 35%, and sometimes foods and drinks at 45%.

To cost a menu item you will need a recipe, scales, measuring cups/spoons, a knife and chopping board, pen and paper so that you can work out the exact cost of each raw ingredient used.

For example, to work out the cost of a chicken wrap:

This means that $2.08 is the minimum selling price you should sell the chicken wrap for.

Anything charged above this price will be profit.

Thanks to Healthy Kids Association.