Most restaurant owners simply multiply their cost price by 3x and call it menu pricing. But do you know where this “3 times rule” actually came from? 🤔 The truth is: Menu Pricing starts with Food Cost %. Ideally, your food cost should stay between 25–35% of the selling price. The remaining 65–75% margin covers rent, salaries, utilities, packaging, and ideally leaves you with 15–20% net profit. 👉 If you run a food cart with low expenses, you can survive even at 45–50% food cost. 👉 But if you run a fine-dine with high staff, interiors and rent, then crossing 25% food cost is already a red alert. So the golden rule is simple: ✅ First calculate your food cost ✅ Then fix your selling price so the % stays in the right range for your model ✅ Never put menu prices on guesswork This is why many restaurants fail — they never understand the real pricing logic. 📌 Watch till the end to understand how to do correct menu pricing. And if you found this helpful, share it with anyone in the food business — it might just save their restaurant. Follow @Abhishek_auli for more restaurant business insights ✨