Last updated: 28 May 2026
In 30 seconds: food cost and ideal margin in a Swiss pizzeria/restaurant
Food cost is the percentage weight of raw-material cost on the selling price of a dish. The formula is simple: food cost % = (cost of ingredients / selling price excl. VAT) x 100. In Switzerland, the ideal target for a restaurant is a food cost between 28% and 35%; for a pizzeria, a margherita pizza often sits around 18-25% because flour, tomato and mozzarella are cheap relative to the menu price.
A practical example: a margherita pizza that costs you 2.40 CHF in ingredients and sells for 16 CHF excl. VAT has a food cost of 15%. A plate of fresh pasta that costs 3.80 CHF and sells for 19 CHF has a food cost of 20%. Below you find the full formula, ready-to-use number tables, the ideal food cost by dish category, menu pricing, the most common mistakes and how to improve your margin by buying better.
The food cost formula (and the three numbers that matter)
There are three figures every restaurateur must know by heart. Food cost % of a single dish = ingredient cost / selling price excl. VAT x 100. Overall food cost = total purchases of food over a period / total food revenue excl. VAT over the same period x 100. Gross margin on a dish = selling price excl. VAT minus ingredient cost.
The selling price must always be considered excluding VAT. In Switzerland the standard VAT rate is 8.1% (2024 onwards), while takeaway food benefits from the reduced rate of 2.6%. Confusing the price with and without VAT is the first source of error: a 16 CHF pizza on the menu (VAT included) is worth about 14.80 CHF excl. VAT for food-cost purposes in a dine-in service.
Example of the calculation chain for a single dish:
- Ingredient cost: 2.40 CHF
- Selling price excl. VAT: 14.80 CHF
- Food cost %: 2.40 / 14.80 x 100 = 16.2%
- Gross margin: 14.80 - 2.40 = 12.40 CHF per dish
Example food cost table: margherita pizza
Here is the detailed breakdown of a classic margherita pizza, with realistic Swiss B2B foodservice purchase prices (2026). Dough of about 250 g, 80 g of tomato, 90 g of mozzarella fior di latte.
| Ingredient | Quantity | Cost CHF |
|---|---|---|
| Type 00 pizza flour (W300) | 160 g | 0.32 |
| Peeled tomatoes / pizza sauce | 80 g | 0.34 |
| Fior di latte mozzarella | 90 g | 0.99 |
| Extra virgin olive oil | 8 g | 0.12 |
| Fresh basil, salt, yeast | q.s. | 0.18 |
| Energy (oven) + packaging | 1 pizza | 0.45 |
| Total food cost | 1 margherita | 2.40 |
With a selling price of 16 CHF incl. VAT (about 14.80 CHF excl. VAT), the food cost is 16.2% and the gross margin is 12.40 CHF per pizza. If you add a premium topping (DOP buffalo mozzarella, San Marzano DOP tomato) the food cost rises to 3.50-4.50 CHF and the price should follow to 19-24 CHF.
Example food cost table: a plate of fresh pasta
| Ingredient | Quantity | Cost CHF |
|---|---|---|
| Fresh egg tagliatelle | 140 g | 1.40 |
| Ragu / sauce | 120 g | 1.65 |
| Parmigiano Reggiano DOP | 15 g | 0.42 |
| Oil, salt, herbs | q.s. | 0.13 |
| Energy + service | 1 plate | 0.20 |
| Total food cost | 1 plate | 3.80 |
With a selling price of 21 CHF incl. VAT (about 19.40 CHF excl. VAT), the food cost is 19.6% and the gross margin is 15.60 CHF per plate. Fresh pasta is one of the most profitable items on an Italian menu because the perceived value is high while the raw-material cost stays moderate.
Ideal food cost % by dish category
Not every dish must hit exactly 30%. The smart approach is to balance the menu: low-food-cost items (pizza, pasta, coffee) compensate higher-food-cost items (meat, fish). This is the typical reference range for an Italian restaurant/pizzeria in Switzerland.
| Dish category | Ideal food cost % | Typical gross margin % |
|---|---|---|
| Pizza | 15-25% | 75-85% |
| Fresh / dry pasta | 18-28% | 72-82% |
| Appetizers / starters | 25-35% | 65-75% |
| Meat main courses | 32-42% | 58-68% |
| Fish main courses | 35-45% | 55-65% |
| Desserts | 20-32% | 68-80% |
| Soft drinks | 10-20% | 80-90% |
| Wine (by the glass) | 22-30% | 70-78% |
| Coffee | 8-15% | 85-92% |
| Overall target restaurant | 28-35% | 65-72% |
What food cost is (and why it is not the only number)
Food cost measures only the cost of raw materials. It does not include rent, staff, energy, marketing or depreciation. For this reason a low food cost does not automatically mean a profitable restaurant: it is one of the four major cost blocks, alongside labour cost (typically 30-40% of revenue in Switzerland), premises and overheads.
The classic rule of thumb in catering is the prime cost: food cost + labour cost should stay under 60-65% of revenue. If your food cost is 32% and your labour cost is 35%, your prime cost is 67%, which leaves a thin margin to cover rent and profit. Watching both numbers together is what keeps a restaurant alive.
How to calculate food cost step by step
Step 1: write the exact recipe for each dish, with weighed quantities in grams (not by eye). Step 2: assign to each ingredient its real purchase cost per gram, taken from the supplier invoice, including delivery. Step 3: add a 3-5% allowance for waste, trimming and cooking loss.
Step 4: divide the total ingredient cost by the selling price excluding VAT and multiply by 100. Step 5: repeat for the whole menu and calculate the weighted average using your real sales mix. The weighted overall food cost is the number to compare with your monthly accounting (purchases / food revenue).
Do this exercise at least twice a year, and every time a key supplier price changes. In 2026, with volatile prices on cheese, oil and flour, a recipe costed in January can be 8-12% more expensive by June.
Menu pricing: from food cost to selling price
The most common method is the multiplier (or markup factor). If you want a 25% food cost, the multiplier is 1 / 0.25 = 4: an ingredient cost of 2.40 CHF gives a selling price of 9.60 CHF excl. VAT. For a 30% target, the multiplier is 3.33; for 33%, it is about 3.
| Target food cost % | Multiplier | Example: cost 3.00 CHF → price excl. VAT |
|---|---|---|
| 20% | 5.00 | 15.00 CHF |
| 25% | 4.00 | 12.00 CHF |
| 28% | 3.57 | 10.71 CHF |
| 30% | 3.33 | 10.00 CHF |
| 33% | 3.03 | 9.09 CHF |
| 35% | 2.86 | 8.57 CHF |
The multiplier is only the starting point. Always adjust to the perceived value, the local competition and the psychological price (16 CHF sells better than 15.80 CHF). Then add VAT to reach the menu price: in a dine-in service in Switzerland, multiply the excl.-VAT price by 1.081.
The most common food-cost mistakes in a pizzeria/restaurant
1. Costing by eye. Estimating quantities instead of weighing them. A pizza with 130 g of mozzarella instead of 90 g costs 0.44 CHF more: over 40 pizzas a day that is 6,400 CHF a year thrown away.
2. Ignoring waste. Trimming, peel, cooking loss and unsold items can add 5-10% to the real cost. A dish that looks like 28% on paper can be 33% in reality.
3. Forgetting price increases. Keeping the menu price fixed for two years while supplier prices rise 10%. The margin erodes silently.
4. Confusing price with and without VAT. Calculating food cost on the menu price (VAT included) makes the food cost look lower than it is and inflates the apparent margin.
5. Pricing every dish at the same multiplier. Applying x3 to everything penalises low-cost items (which could carry a higher margin) and overprices high-cost items, making them unsellable.
How to improve your margin by buying better
The fastest lever to lower food cost is the purchase price of raw materials, without touching quality or quantity. Buying from a specialised Italian wholesaler instead of a retail cash-and-carry can cut the cost of mozzarella, flour, tomato and cured meats by 15-30%.
Three concrete actions: 1) consolidate orders with a single supplier to reach volume price brackets and free delivery; 2) buy professional formats (5 kg mozzarella bags, 5 litre oil tins, 2.5 kg tomato cans) instead of retail packs; 3) use functional substitutes when a premium ingredient is out of stock, without lowering the perceived quality of the dish.
Concrete example: lowering the mozzarella cost from 11 CHF/kg to 8.50 CHF/kg cuts the food cost of a margherita by 0.22 CHF. Across 40 pizzas/day, 6 days a week, that is over 2,700 CHF saved per year on a single ingredient.
FAQ — frequent questions on food cost and restaurant margin
What is the ideal food cost in a Swiss restaurant?
The ideal overall food cost in Switzerland is between 28% and 35% of revenue excl. VAT. A pizzeria can stay lower (22-28%) thanks to cheap pizza ingredients; a fish or fine-dining restaurant can reach 38-42%. Below 25% the menu may be overpriced; above 38% the margin is at risk.
How do you calculate food cost percentage?
Food cost % = (ingredient cost / selling price excl. VAT) x 100. Example: a dish costing 4 CHF in ingredients and sold at 16 CHF excl. VAT has a food cost of 25%. Always use the price excluding VAT, never the menu price.
What is the food cost of a margherita pizza?
The food cost of a classic margherita is around 2.00-3.50 CHF (flour, tomato, mozzarella, oil, energy and packaging). On a selling price of 14-18 CHF incl. VAT, this gives a food cost of 15-22% and a gross margin of 11-15 CHF per pizza.
What is the difference between food cost and margin?
Food cost is the cost of raw materials as a percentage of the selling price. The gross margin is the opposite: selling price minus ingredient cost. If the food cost is 30%, the gross margin is 70%. They are two sides of the same coin.
How do you set a dish selling price from food cost?
Divide the ingredient cost by the target food cost. For a 30% target: cost / 0.30. An ingredient cost of 3 CHF gives a price of 10 CHF excl. VAT. Then adjust to perceived value and competition, and add VAT for the menu price.
Does food cost include VAT?
No. Food cost is always calculated on the selling price excluding VAT. In Switzerland, divide the dine-in menu price by 1.081 (8.1% VAT) or the takeaway price by 1.026 (2.6%) to get the price excl. VAT before computing food cost.
How can I lower my food cost without losing quality?
The main lever is the purchase price: buying from a specialised wholesaler in professional formats can cut raw-material cost by 15-30%. Other levers: portion control by weight, reducing waste, and reviewing the menu to push high-margin dishes.
What is prime cost in catering?
Prime cost = food cost + labour cost. It should stay under 60-65% of revenue. It is the single most important indicator of a restaurant's health, because together these two blocks absorb the largest share of costs before rent and profit.
LAPA: raw materials at the right price for your food cost
LAPA is the Italian food wholesaler in Switzerland for restaurants, pizzerias and professional kitchens. Buying the right raw materials at the right price is the fastest way to improve your food cost without lowering the quality on the plate.
Our catalogue includes 3,000+ authentic products: type 00 pizza flour, fior di latte and DOP buffalo mozzarella, peeled and San Marzano DOP tomatoes, extra virgin olive oil, Parmigiano Reggiano DOP, cured meats, fresh and dry pasta, frozen desserts. Professional formats and volume price brackets to lower the cost per portion.
Refrigerated delivery 6 days a week across Switzerland. Order on lapa.ch/shop or call +41 76 361 70 21. Free pricing and food-cost advice for chefs and restaurateurs.