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.

Control pathwayIllustrative
1234
  1. 01Facts
  2. 02Evidence
  3. 03Treatment
  4. 04Approval
A practical review sequence, not a promise of a regulatory or commercial outcome.

Private hospitality planning tool

Restaurant recipe-cost calculator for UAE operators

Build a wastage-adjusted recipe and portion cost, then compare target VAT-exclusive and VAT-inclusive selling prices. Inputs stay in this browser and are not stored, transmitted or sent to analytics.

Recipe inputs

Ingredient 1
Ingredient 2
Ingredient 3

Indicative result

Recipe cost
AED 52.95
Cost per portion
AED 5.29
Suggested price excl. VAT
AED 17.65
Suggested price incl. VAT
AED 18.53
Gross profit per portion
AED 12.35
Gross margin
70.00%

Illustrative only. Selling-price decisions should also consider labour, occupancy, delivery commissions, discounts, channel mix and commercial positioning.

Methodology and responsibilities

Ingredient usage cost = recipe quantity ÷ purchase-pack quantity × pack cost, adjusted for entered wastage.

Suggested selling price = cost per portion ÷ target food-cost percentage. The VAT-inclusive display applies the rate entered by the user.

The operator is responsible for accurate pack sizes, current supplier prices, realistic yields and the VAT treatment of the menu item. This tool does not determine tax treatment, profitability or a commercially achievable price.

Recipe-cost questions

How is recipe cost calculated?

Each ingredient cost is derived from recipe quantity divided by purchase-pack quantity, multiplied by pack cost, then adjusted for the entered wastage percentage.

Does the suggested price include UAE VAT?

The calculator shows VAT-exclusive and VAT-inclusive values using the entered illustrative VAT rate. Confirm the actual VAT treatment before pricing.

Is gross margin the same as food-cost percentage?

No. Food-cost percentage is portion cost divided by VAT-exclusive selling price. Gross margin is the remainder before labour, occupancy and other operating costs.

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