Valusage Business Advisors

Illustrative decision tools

Use the inputs to frame a question and identify evidence gaps. Results are illustrative and do not determine a filing position, authority outcome or advisory conclusion.

Estimate UAE end-of-service gratuityCalculate break-even units and revenue
Control pathwayIllustrative
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  1. 01Facts
  2. 02Evidence
  3. 03Treatment
  4. 04Approval
A practical review sequence, not a promise of a regulatory or commercial outcome.

Private menu-economics tool

Menu selling-price and food-cost calculator

Compare current food cost and gross margin with a target selling price, including optional yield, wastage and VAT display. Inputs remain in your browser and are not stored, logged, transmitted or sent to analytics.

Menu inputs

Pricing method

Use actual measured yield and wastage. Leave yield at 100% and wastage at 0% if the portion cost already includes both adjustments. Service charge is shown separately and added before the illustrative VAT calculation; confirm the establishment's actual tax treatment.

Indicative result

Adjusted food cost
AED 18.00
Current food cost
30.00%
Current gross margin
70.00%
Current markup on cost
233.33%
Suggested base price
AED 60.00
Service charge
AED 0.00
Suggested price incl. VAT
AED 63.00
Commercial rounded price
AED 63.00

Formula methodology

Adjusted portion cost = portion cost ÷ yield percentage ÷ (1 − wastage percentage).

Food-cost method = adjusted portion cost ÷ target food-cost percentage. Gross-margin method = adjusted portion cost ÷ (1 − target gross-margin percentage).

Gross margin measures gross profit as a percentage of selling price. Markup measures gross profit as a percentage of cost; they are not interchangeable.

Service charge is calculated separately on the suggested base price. VAT-exclusive and VAT-inclusive results are both shown. The commercial rounded price rounds the VAT-inclusive result upward to the selected increment.

Results are illustrative and do not determine VAT or service-charge treatment, demand, profitability or an achievable price.

Menu-pricing questions

How is the suggested menu price calculated?

The adjusted portion cost is divided by the target food-cost percentage. The calculator then shows VAT-exclusive and VAT-inclusive values.

How are yield and wastage applied?

The entered portion cost is increased for yield loss and wastage. Use evidence from actual preparation tests rather than an unsupported estimate.

Does gross profit include labour and overheads?

No. The displayed gross profit subtracts only adjusted food cost from the VAT-exclusive selling price. Labour, occupancy, delivery commissions and other operating costs remain outside it.

Review food-cost controlsDiscuss menu economics

Reviewed 5 September 2026. VAT reference: Federal Tax Authority VAT guidance.