Percy Plate is a web-based food cost calculator for food trucks, caterers, cottage food producers, and small restaurant owners. It lets you enter your ingredients and what you pay for them, build recipes, and instantly see the cost per serving and recommended sell price based on your target food cost percentage.

Yes. Percy Plate has a free plan that lets you create up to 10 ingredients and 5 recipes to calculate food cost. A paid subscription ($14.99/month or $119.99/year) unlocks unlimited ingredients and recipes plus inventory tracking, revenue reporting, menu engineering, Prime Cost, AI invoice scanning, FDA nutrition facts labels, FDA ingredient labels, and label printing.

How does Percy Plate calculate food cost?

You enter each ingredient, the unit you buy it in (lb, oz, gallon, etc.), and what you pay per unit. When you build a recipe, Percy Plate converts the recipe quantities to your purchase units, calculates the cost of each ingredient used, and divides by the number of servings to give you a cost per serving. It also shows the food cost percentage and a suggested sell price.

Can Percy Plate generate nutrition facts labels?

Yes. Percy Plate can look up nutrition data from the USDA FoodData Central database for each ingredient, then automatically calculate the per-serving nutrition for a recipe. It generates an FDA-format Nutrition Facts panel that can be printed directly to thermal labels (Brother, Dymo, Zebra) or Avery sheet labels in sizes 2x4 inch and 3.33x4 inch.

Can Percy Plate generate an ingredient list label?

Yes. Percy Plate generates an FDA-compliant ingredient label that lists ingredients by weight (heaviest first), automatically detects the top 9 FDA allergens, and includes your business name and net weight. Labels can be printed to thermal printers or Avery sheet labels.

What label printers work with Percy Plate?

Percy Plate supports thermal label printers including Brother QL series (DK-1202 2x4 inch labels), Dymo LabelWriter (30334 and similar), and Zebra desktop printers. It also supports Avery 5163 (2x4 inch) and Avery 5164 (3.33x4 inch) sheet labels for standard desktop printers.

Who is Percy Plate designed for?

Percy Plate is designed for small food business owners including food truck operators, cottage food producers, caterers, small restaurant owners, and anyone who sells homemade or prepared food and needs to track ingredient costs, price their menu, and produce product labels.

Does Percy Plate work on mobile?

Yes. Percy Plate is a web application that works on any device with a modern browser, including phones and tablets. You can look up ingredient costs, update recipe quantities, and check your food cost percentage from anywhere.

How do you calculate food cost percentage?

Food cost percentage = (ingredient cost per serving ÷ menu price) × 100. For example, if your ingredients cost $3.50 and you sell the dish for $12.00, your food cost percentage is 29.2%. Most food businesses target 28–35%. To set a price from a target, divide ingredient cost by your target: $3.50 ÷ 0.30 = $11.67 suggested price at 30% food cost.

What is a good food cost percentage for a small food business or bakery?

Most food businesses target a food cost percentage between 28% and 35%. Bakeries and cottage food producers often achieve lower food cost percentages (20–28%) because flour, sugar, and butter are inexpensive relative to retail prices. Full-service restaurants tend to run 30–35%. The right target depends on your labor costs, overhead, and pricing power in your market.

How do I calculate the cost per serving of a recipe?

Add up the ingredient cost for the full batch, then divide by the number of servings. For each ingredient, multiply the quantity used by the cost per unit (converting units as needed). For example: 8 oz flour at $0.89/lb = $0.89 ÷ 16 × 8 = $0.44. Sum all ingredient costs, then divide by servings. Percy Plate does this calculation automatically once you enter your ingredient prices and recipe quantities.

How does yield percentage affect recipe costing?

Yield percentage accounts for trim loss, cooking shrinkage, and waste. If you buy 1 lb of chicken but only 0.75 lb is usable after trimming, your yield is 75%. To get accurate food costs, divide the as-purchased cost by the yield percentage: $4.00/lb ÷ 0.75 = $5.33 per usable pound. Percy Plate lets you set a yield percentage (AP to EP) on any ingredient so your recipe costs reflect what you actually use.

What is the best recipe costing software for a small food business?

The best recipe costing software for a small food business depends on your needs. Percy Plate ($14.99/month) is built specifically for cottage food producers, food trucks, caterers, and small restaurants — it includes recipe costing, menu pricing, FDA ingredient labels, nutrition facts labels, inventory tracking, and revenue reporting. Competitors like meez start at $24/month and scale to $199/month. Square and Toast do not include recipe costing natively.

Is there free recipe costing software for home bakers or cottage food businesses?

Yes. Percy Plate has a free plan that includes recipe food cost calculation and menu pricing suggestions. The free plan lets you create up to 10 ingredients and 5 recipes. For unlimited recipes, FDA labels, nutrition facts, and inventory tracking, the paid plan is $14.99/month or $119.99/year. No credit card is required to start.

How do I price homemade baked goods to make a profit?

Start with your ingredient cost per batch, then divide by the number of units to get ingredient cost per item. Add packaging (boxes, bags, labels) as a per-unit cost. Then set a target food cost percentage — most cottage food bakers aim for 25–35% — and divide your total ingredient cost by that percentage to get a minimum price. For example: $0.85 ingredient cost per cookie ÷ 0.30 = $2.83 minimum price at 30% food cost. Factor in your time and overhead to ensure you are actually profitable, not just covering ingredients.

What are the labeling requirements for cottage food products?

Most states require cottage food labels to include: (1) the product name, (2) your name and home address, (3) a list of ingredients in descending order by weight, (4) a disclosure statement such as 'Made in a home kitchen not inspected by the state or local health department,' and (5) allergen declarations for any of the 9 major FDA allergens present. Some states also require net weight. Requirements vary by state — check your state's cottage food law for specifics. Nutrition Facts panels are generally not required for cottage food operations below a certain revenue threshold.

Do I need a nutrition facts label on my cottage food products?

Most cottage food producers are exempt from FDA Nutrition Facts label requirements under the small business exemption (fewer than 100 full-time employees and fewer than 100,000 units sold annually). However, you must still list ingredients in descending order by weight and declare all major allergens. Some states impose additional requirements. When in doubt, check your state's cottage food law and the FDA's small business labeling exemptions.

What allergens must I disclose on a homemade food label?

FDA requires disclosure of 9 major food allergens: milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, soybeans, and sesame. These must be declared on all food labels, including cottage food products — even if a full Nutrition Facts panel is not required. The standard format is a 'Contains:' statement after the ingredient list, for example: 'Contains: Wheat, Eggs, Milk.' Percy Plate detects all 9 allergens automatically from your ingredient names.

How do I create a nutrition facts label for homemade food?

To create a Nutrition Facts label for homemade food: (1) look up the nutrition data for each ingredient using the USDA FoodData Central database, (2) calculate the per-serving amounts for calories, fat, carbohydrates, protein, sodium, and other nutrients, (3) format the panel according to FDA guidelines with serving size, servings per container, and daily value percentages. Percy Plate automates this — it looks up USDA nutrition data for your ingredients, calculates per-serving totals, and generates a print-ready FDA-format Nutrition Facts label for thermal or sheet labels.

How do I list ingredients in the correct order on a food label?

FDA regulations require ingredients to be listed in descending order by weight — the ingredient present in the greatest amount by weight must appear first. For example, if your muffin contains more flour than sugar, flour must be listed first. Sub-ingredients (like those in a chocolate chip) must be listed in parentheses immediately after the component. Percy Plate sorts ingredients automatically by weight when generating your label.

What information is required on a homemade food product label?

A complete homemade food label generally requires: (1) the name of the food, (2) the net quantity (weight or count), (3) an ingredient list in descending order by weight, (4) allergen declarations for all 9 major FDA allergens, (5) your business name and address, and (6) for cottage food specifically, a state-required disclosure statement such as 'Made in a home kitchen not inspected by the state health department.' Nutrition Facts panels are usually optional for small cottage food producers below certain revenue thresholds.

By Heidi Macomber · June 16, 2026 (updated July 28, 2026)

How to Price a Menu Item

Pricing a menu item is more than a shot in the dark, yet for many small food business owners, that is exactly where the journey starts.*

Many operators trust their gut, peek at the neighbor’s menu, or guess what customers might pay. For example, imagine a café owner who sets their sandwich prices by copying a nearby shop. At first, customers fill their tables and profits seem fine. But when the cost of avocados jumps or an unexpected equipment repair pops up, the profits suddenly fade. It becomes clear that the prices don’t cover the real costs.

This can work for a while, but it quickly unravels when ingredient prices spike, surprise expenses pop up, or a slow month exposes just how razor-thin the margins really are.

Fortunately, there is a practical, step-by-step method you can follow to confidently price your menu items. These steps apply whether you have just a handful of items on your board or an extensive menu with dozens of options, so businesses of every size can use this approach.

In the next sections, we’ll walk through this approach so you can make informed decisions for your business. Here’s a quick overview of the steps: (1) Know your ingredient cost, (2) Set a target food cost percentage, (3) Calculate your minimum sell price, and (4) Revisit prices when costs change. Knowing what’s ahead will help you move through the process with confidence.

Crunching the numbers to set your prices does not have to be intimidating. Here is a straightforward method that any food business can use with confidence.

Step 1: Know Your Ingredient Cost

Start by uncovering the true cost of every ingredient in your recipe, calculated down to the portion level. Break bulk purchases into bite-sized units like cost per ounce, gram, or tablespoon, and tally up exactly what each serving uses.

Do not overlook the little things. A pinch of salt may seem trivial, but specialty spices, oils, and garnishes can sneak up on your bottom line. Make it second nature to count every cost.

Step 2: Set a Target Food Cost Percentage

Your food cost percentage is the part of the selling price that covers ingredients. Most food businesses aim for 25% to 35%, depending on the type of food. Coffee and beverage-focused businesses usually have lower percentages (18 to 25%), while dishes with more protein may be higher. [1][2]

Pick a target that not only covers your ingredients but also pays for labor, packaging, rent, equipment, and still leaves a slice of profit for you.

To get a clearer picture, estimate your non-food costs like labor, rent, and utilities for a typical month. Add them together, then divide by the total number of menu items you expect to sell in the same period.

If your sales fluctuate from month to month, you can use an average of your sales over several months to get a more realistic number. Another useful tip for owners with unpredictable sales is to use a conservative sales estimate or a rolling average based on your lowest-performing months to avoid underpricing during slow periods.

This approach helps smooth out seasonal ups and downs or unpredictable sales periods, giving you a steadier foundation for pricing.

For example, suppose your ingredient cost for a chicken sandwich is $3.00. After adding up your monthly non-food costs like rent, utilities, and labor, you find they total $5,000 per month. If you expect to sell 2,000 menu items in that month, your non-food cost per item is $2.50 ($5,000 divided by 2,000). Add this to your ingredient cost: $3.00 + $2.50 = $5.50 total cost per sandwich. This step helps ensure that all your expenses are covered, not just the food on the plate.

Step 3: Calculate Your Minimum Sell Price

The formula is simple:

Sell Price = Ingredient Cost ÷ Target Food Cost %*

For example, if a menu item costs $2.80 in ingredients and your target food cost is 30%, your minimum selling price is $2.80 divided by 0.30, which equals $9.33. Rounding up to $9.50 or $9.75 puts you in the right range.

This is your baseline price, the line you cannot cross without eating into your margins. From here, weigh local competition, your business’s unique appeal, and what customers believe your food is worth to decide how much higher to go. For example, if your dish is unique or features specialty ingredients, consider setting the price 10 to 20 percent above your calculated baseline. If your competitors offer a similar item at a higher price and your quality matches or exceeds theirs, you can price competitively or even slightly above. [1] Alternatively, if the market is very price sensitive, you might choose to keep your pricing closer to your minimum. [3] Always make sure your price reflects both your costs and the value your business delivers.

If you need to raise prices, clear communication with your customers helps maintain trust. Briefly explaining the reasons behind price changes--such as increases in ingredient costs, investment in higher quality, or improvements to the dining experience--can help customers understand your decision. Use signage, menu notes, or friendly conversations to highlight your commitment to freshness, quality, or local sourcing. Customers often appreciate honesty and are more willing to accept changes when you are transparent about what goes into your pricing.

If you find that your calculated price is higher than what customers are willing to pay, consider adjusting your approach. You might reduce portion sizes, substitute ingredients, or rework the recipe to lower your costs while maintaining high quality. Another strategy is to create a smaller or simpler version of the dish as a more affordable menu item, or pair it with lower-cost items to maintain margin without raising prices. Taking these steps allows you to stay competitive while protecting your bottom line.

Step 4: Revisit When Costs Change

A price that worked six months ago might be out of date today. Ingredient costs are always in flux, and many operators do not notice until profits vanish. [4]

Make it routine to check your costs with every key reorder, and set a specific review schedule for your menu pricing. For example, commit to reviewing your menu prices on the first Monday of each month or at the start of each quarter.

Putting this date on your calendar makes it easier to stay consistent, even during busy periods. Building this habit helps ensure your prices always reflect your true costs and keeps your business on solid ground.

Pricing is not a one-and-done task. It is a vital habit that keeps your food business thriving.

Let the numbers be your compass when setting prices. If you prefer, you can do these calculations manually using pen and paper or a simple calculator--the same steps work no matter which method you use.

Percy Plate is an easy-to-use online food cost calculator designed specifically for small independent food businesses. Simply visit percyplate.com to access the tool, enter your ingredients, set your target food cost percentage, and get a suggested selling price instantly. No spreadsheet is needed.

When ingredient prices change, your costs are automatically updated, so you can always keep your menu pricing accurate. The tool is free to use and does not require you to enter any personal or business-sensitive information beyond the ingredients and pricing data, ensuring your data remains private and secure.

Tip: For the most accurate results, double-check that you have entered the exact quantities for each ingredient based on the recipe's portion size. A common pitfall is forgetting to account for small ingredients or using bulk prices instead of cost per portion, which can lead to inaccurate pricing. Be sure to update your ingredient costs regularly to keep your calculations accurate.

Learn more at percyplate.com.

Sources

[1] 5 Restaurant Experts Dish on Menu Pricing Strategy, 2025.

[2] Restaurant Menu Pricing Guide, 2026.

[3] Raab et al., 2009, pp. 3-21.

[4] Exclusive: Restaurants say they've hit price hike ceiling, 2026.

Related Guides

Restaurant Menu Pricing Strategy: How to Price for Profit Not Guesswork — Data-driven menu pricing strategy
How to Price Your First Menu Before You Open — Price a menu before day one
How to Engineer Your Menu for Maximum Profit — Sort menu items by profit and popularity
How to Calculate Food Cost Percentage: A Complete Guide for Restaurants — The food cost percentage foundation

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