Example
Ingredients ₹84, menu price ₹294 with 5% GST inside it. The price before tax is ₹280, so food cost is 84 ÷ 280 = 30%. Measured against ₹294 it would look like 28.6%, which flatters the dish.
Why it matters
A busy dish with a high food cost can earn less than a quiet one. Work it out from what you actually paid, and do it again when ingredient prices move.
How Nivasik handles it
- A recipe on a dish works out its cost from what you paid for each ingredient.
- Sales take the ingredients off stock.
- Reports show cost and margin by item where costs are on file.