Markup coefficient

The markup coefficient — the coefficient multiplicateur — is the number you multiply an item's ex-tax ingredient cost by to reach its ex-tax selling price. A cost of 3 at a coefficient of 4 gives a 12 price. It's the inverse of food cost: coefficient = 1 ÷ food-cost %. A 25% food cost is a x4 coefficient; a 33% food cost is x3.

Kitchens commonly work between x3 and x4, bars between x4 and x5, because a lower beverage cost leaves room for a higher multiplier. In France and Switzerland, always state whether the coefficient is applied ex-tax (HT) or tax-inclusive (TTC) — the two differ by the VAT rate and are easy to mix up.

The biggest mistake is one blanket coefficient across the whole menu. A x4 works for a cheap pasta but prices a lobster off the card; expensive proteins need a lower coefficient and a higher cash margin, while cheap garnish-heavy dishes can carry more. Use the coefficient as a starting point, then sanity-check the cash margin dish by dish.