The Secret to Accurate Dish Costs and Higher Profits
For every catering business, knowing the real cost of each dish is very important. It is not just accounting work – it decides whether your business will make a good profit or face losses. Many caterers still depend on guesswork or old Excel sheets. This can slowly reduce profits without you even realising it. Let’s understand a simple way to calculate dish costs correctly and protect your margins.
September 9, 2025

Let’s break down how you can calculate dish costs directly and exercise that knowledge to keep your margins healthy without spending bottomless hours buried in paperwork.
1. Understand What to Add in Dish Cost
Dish costing is more than just adding vegetable prices.
You should include:
- All ingredients – Even small items like salt, oil, masala, chutney and garnish must be counted at purchase price.
- Portion size – Fixed portions stop over-serving and save money.
- Preparation cost – Time and effort of cooks and helpers should be considered.
- Other expenses – Gas, electricity, packaging, transport and kitchen maintenance must be divided into dish cost.
Only then you get the true picture of what one plate really costs.
2. Keep Checking Price Changes
In India, prices of vegetables, grains and dairy change often. Today tomato is ₹20, next week it may be ₹40.
So you should:
- Update ingredient rates regularly
- Check supplier price changes
- Adjust recipe cost as per season
If costing is updated, your quotation and menu price will always be correct.
3. Stop Depending Only on Spreadsheets
Manual costing takes too much time and mistakes happen easily.
A good catering management software can:
- Save all your recipes and portions
- Calculate per-plate cost automatically
- Show profit margin for each dish
- Update cost when ingredient price changes
This saves hours of work and gives accurate numbers.
4. Review Your Menu Regularly
Make a habit to check your top-selling dishes:
- Are ingredient prices increasing?
- Is the dish still giving good profit?
- Can you buy material at better rate?
- Do portions need small changes?
Regular review helps you correct problems before losses start.
5. Set the Right Price
After knowing exact cost, decide your selling price confidently.
Most caterers keep 65–70% margin, but it depends on:
- Your city and competition
- Type of clients (wedding, corporate, party)
- Service quality and presentation
Remember, clients pay not only for food but also for your service, taste and reliability.
6. Use the Right System
A catering management SaaS works like your digital manager:
- Keeps recipes and costs in one place
- Creates clear costing reports
- Updates portions anytime
- Shows real profit per order
- Reduces paperwork and confusion
So you can focus on cooking and service instead of calculations.
Final Thoughts
Accurate dish costing is the real secret behind a profitable catering business. With clear numbers and the right system, you can quote correctly, control expenses and grow without hidden losses.
Start managing your costs smartly and put more profit on every plate!
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