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How do you calculate a ++ menu price?

A ++ price is the menu price before two extras. The service charge goes on first, then the tax. The sum is what the guest pays. To work backwards, divide the amount the guest should pay by both rates together, and print what is left. Whether tax also applies to the service charge depends on where you trade.

By The Mise team, restaurant people. Last updated .

At a glance.

The four sums of a ++ price, in order.
StepWhat you doWhat you need
1Start with the menu priceThe price you want to print
2Add the service chargeYour service charge rate
3Add the taxYour tax rate, and whether it applies to the service charge too
4Read the totalNothing more. This is what the guest pays

What ++ means.

A ++ on a menu tells the guest that two amounts are added at the till. One is a service charge. The other is tax. A price with nothing added is often called nett.

From the menu price to the bill.

  1. Take the price you print on the menu.
  2. Multiply it by your service charge rate, and add the result.
  3. Multiply that total by your tax rate, and add the result. If your tax applies to the menu price alone, multiply the menu price instead.
  4. The final figure is what the guest pays.

Sample. Invented numbers.

One dish, with rates made up for this example.

Menu price: 100,000.

Service charge at 5%: 5,000. Total so far: 105,000.

Tax at 10% on that total: 10,500.

The guest pays: 115,500.

From the bill back to the menu price.

Sometimes you start from the amount the guest should pay and need the price to print. Work backwards, one rate at a time.

  1. Take the amount the guest should pay.
  2. Divide it by one plus the tax rate, to take the tax out.
  3. Divide the result by one plus the service charge rate, to take the service charge out.
  4. What is left is the price to print.

Sample. Invented numbers.

The same dish, backwards, with the same made up rates.

The guest should pay: 115,500.

Without the tax: 115,500 divided by 1.10 is 105,000.

Without the service charge: 105,000 divided by 1.05 is 100,000.

Print 100,000.

Why the printed price is rarely round.

The two rates multiply. A round total divided by them seldom lands on a round price. So you print the price just under or just over, and check the bill each one makes.

Not verified. Check this with your accountant.

Tax and service charge

The rates, the order they apply in, and whether the service charge counts as your sales all depend on where you trade and on what you promised your team. They change. Read one of your own bills, or ask your accountant.

From the floor.

Cost a dish against the menu price before anything is added, never against the ++ total the guest pays.

Questions

The questions people ask.

What does ++ mean on a menu?

It means a service charge and tax are added to the printed price at the till. The guest pays more than the number on the menu.

Is tax worked out on the service charge as well?

On many bills it is. On others it is not. The rule belongs to the place you trade in, and it changes. Read one of your own bills before you set the order.

What does nett mean on a menu?

The printed price is the price the guest pays. Nothing is added at the till.

Which food cost do I measure, the menu price or the total?

The menu price. It is what your dish sells for before anything is added. The service charge and the tax are not the price of the dish.

Can I try this with my own rates?

Yes. The menu price calculator on this site asks for your two rates and fills in nothing for you. It is free and keeps nothing.

Now try it.

Free, in your browser, with nothing stored.

Questions

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