How to Cost a Plate of Food Based on Your Recipes in Canada

Creating profitable recipes starts with understanding exactly what each plate costs you to serve. For restaurants in Canada, where labour and food prices vary widely by province, mastering this calculation can make a big impact on your bottom line.

What Is Plate Cost?

Plate cost, also known as "cost per serving" or "per plate cost," is the total cost of ingredients used to prepare a single portion of a dish. This figure helps you set menu prices strategically and assess whether each dish contributes enough to cover overheads like rent, wages, and equipment.

Formula:

Plate Cost = (Total Recipe Cost ÷ Number of Portions the Recipe Yields)

To calculate this, you’ll need to:

• Break down each recipe into individual ingredients

• Determine the cost per unit of each ingredient

• Calculate the quantity used per portion

Step-by-Step Example

Let’s say you're making a chicken Caesar salad that serves 10.

Plate Cost = $58.00 ÷ 10 = $5.80

This figure doesn’t include labour, utilities, rent, or a profit margin. It's just your starting point.

Pro tip: Create a digital spreadsheet that automatically calculates plate cost based on ingredient prices and portion sizes.

Adding Your Target Food Cost Percentage

Once you have your plate cost, you need to calculate the selling price. A common benchmark for food cost percentage in Canada is 30–35%.

Formula:

Selling Price = Plate Cost ÷ (Target Food Cost Percentage)

Using our chicken Caesar salad example:

Selling Price = $5.80 ÷ 0.30 = $19.33

You might round this up to $19.50 or $20.00 based on your concept and local pricing norms.

Including Labour and Overhead Costs

To get a more complete picture, include prep time and average hourly wages. Canadian restaurateurs often calculate labour cost per plate by estimating how long it takes to prepare the dish and applying the wage rate.

Formula:

Labour Cost per Plate = (Total Prep Time in Minutes × Wage per Minute) ÷ Portions

For example:

• Total prep time: 60 minutes

• Staff wage: $18/hour = $0.30/minute

• Number of portions: 10

Labour Cost = (60 x 0.30) ÷ 10 = $1.80 per plate

Add this to your plate cost for a truer cost:

$5.80 + $1.80 = $7.60 per plate

Now your break-even selling price needs to reflect that full cost:

Selling Price = $7.60 ÷ 0.30 = $25.33

Why Plate Cost Matters

According to the Toast Consumer Preferences Survey 2025, where 200 Canadian diners were surveyed about restaurant pricing and value, 67% say menu price is quite influential or the primary influence on their restaurant choice. If your prices are too high or low for the experience you provide, you risk losing trust. Transparent, well-calculated pricing makes a difference.

Final Thoughts

Calculating plate cost probably isn't the most exciting part of running a restaurant, but it's one of the most important. 

You should base your prices on real numbers instead of gut feelings. Then you can protect your profit margins, your customers feel they're getting fair value, and you can make decisions with confidence instead of constantly second-guessing yourself.