The Cost of Menu Items

The cost of menu items reflects the expenses involved in preparing and serving each dish. This includes the cost of ingredients, such as meats, vegetables, and spices; labor, covering wages for chefs and staff; overhead expenses like rent, utilities, and equipment; and other factors like packaging and waste. When setting menu prices, restaurants aim to cover these costs while ensuring a profit. Understanding these components helps customers see how meal prices are calculated based on quality ingredients, skilled labor, and operational costs, rather than arbitrary pricing.