Dish Margin Calculator

Contribution margin (margine di contribuzione) is the amount left after subtracting the variable cost of a dish from its selling price. Formula: Contribution Margin = Selling Price − Variable Cost. It is the amount each dish 'contributes' toward covering fixed costs and generating profit.

Gross margin % is calculated on the selling price: (Selling Price − Cost) / Selling Price × 100. Markup % is calculated on the cost: (Selling Price − Cost) / Cost × 100. A dish with a 30% food cost has a 70% gross margin but a 233% markup. Italian restaurateurs typically track gross margin %.

Benchmarks by dish type: pasta dishes 70–80% gross margin (low ingredient cost), meat secondi 55–68%, fish dishes 50–65%, pizza 68–78%, desserts 72–82%, cocktails 75–85%. Dishes with lower margins need higher volume or higher selling price to cover fixed costs.

It depends on the analysis. For a pure food cost margin, enter only ingredient cost. For a prime cost margin, add the direct kitchen labor cost attributable to that dish. For most Italian trattorie, a simplified approach uses ingredient cost only as variable cost.

Menu engineering plots each dish on a matrix of margin vs. popularity. High-margin, high-popularity dishes ('Stars') should be promoted. Low-margin, high-popularity dishes ('Plowhorses') need a price increase or cost reduction. Use this calculator to identify which dishes drag down your average margin.

Variable cost per dish includes: raw ingredients (adjusted for yield/waste), packaging for takeaway, single-use condiments and bread baskets if charged per table. Do not include fixed costs like rent, utilities or monthly salaries — those belong in break-even analysis.