Hotel F&B Markup Calculator
Calculate menu markup over food cost. Industry standard: 200-400%. Below 150% suggests under-pricing or high food cost.
Markup percentage
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Formula
Markup % = ((Menu Price - Food Cost) / Food Cost) × 100
Worked example
Why it matters
Markup percentage is the diagnostic for F&B pricing discipline. Hotels under-pricing F&B (below 200% markup) leak revenue every order. Hotels over-pricing (above 600% on non-signature items) lose volume. The right markup is segment-specific and varies by category — alcohol typically 400-600%, food 200-400%, soft drinks 600-1000%.
Frequently asked questions
Food: 200-400%. Wine and spirits: 250-400%. Beer: 200-300%. Soft drinks: 600-1000%. Coffee: 800-1200%. Lower markups on signature dishes are typical and expected.
Markup = (Price - Cost) / Cost. Gross margin = (Price - Cost) / Price. A 200% markup is a ~67% gross margin. Same data, different framing.
No. Mix high-markup and signature low-markup items. The signature items justify your prices; the high-markup items pay for them.
Markup measures product margin only. Net F&B profit requires deducting labour, energy, rent allocation, and waste. F&B operations typically run 20-35% net margin after all costs.
Manage your full F&B menu in Guestivo
Guestivo's menu module tracks per-item markup, sales volume, and category mix in one place. Plus QR-launched ordering for guests.