How to Price Steak: Food Cost Breakdown & Menu Price Guide
Last reviewed: July 28, 2026
Short answer
Steak typically runs a food cost of 35–45%, supporting a menu price of $28–$55 (8-12oz cut) depending on portion size and ingredient quality. A worked example below shows the exact math for one common version.
What Drives Steak Cost
Beef cut
70–85% of costDominates cost more than almost any other menu category — grade and cut matter enormously
Compound butter / sauce
3–5% of costSmall cost, meaningful perceived value add
Sides (if included)
10–20% of costOften costed as an afterthought despite real impact on plate cost
Aging and trim loss
built into cut cost of costDry-aged cuts lose 15-20% of weight to moisture loss and trim — rarely priced in
Worked Example
| Ingredient | Amount | Cost |
|---|---|---|
| Ribeye (12oz, USDA Choice) | 12 oz | $9.50 |
| Compound herb butter | — | $0.40 |
| Side (potato or vegetable) | — | $1.10 |
| Total ingredient cost | $11.00 | |
Target Food Cost
38%
Suggested Menu Price
$28.95
Actual food cost: 38.0%
Common Pricing Mistakes
Not costing dry-aging weight and moisture loss
Dry-aged beef loses 15-20% of its weight during the aging process before any trimming even happens. Costing against the pre-aged purchase weight significantly understates true cost.
Pricing all grades the same across the menu
USDA Select, Choice, and Prime carry meaningfully different costs per pound. A flat markup applied uniformly either overprices Select cuts or loses money on Prime.
Treating the side dish as free
A steakhouse plate with a $9-12 cut and an uncosted side can still run a healthy blended food cost on paper while the side itself quietly loses money.
Price Every Steak Dish on Your Menu
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