Market price (MP)
By Marji · Updated · Sources and editorial policy
Also called: mp · market price menu
MP on a restaurant menu means market price. The menu does not print a fixed amount; the restaurant provides the current price separately. For a guest, the useful next step is to ask the price and whether it is per dish, per pound or per item before ordering. MP does not mean free or a standard price shared by restaurants.
How to make the price clear to guests
- State the current price before the order. Put it on a daily insert, board or updated digital menu, and have the server confirm it. If it is sold by weight, explain the unit and the weight or expected total.
- Explain what is included. Make portion size, sides and optional additions clear. A daily price update should not leave the guest guessing what the dish will cost.
How to calculate a changing menu price
Start from your own supplier cost, usable yield and portion size. Add every ingredient on the plate before applying a target food cost. A national commodity index provides market context; it cannot tell you the current wholesale cost of your dish. Review the resulting price against your other costs and what guests will pay.
Price scenario from a target ingredient margin
Menu price = Complete plate ingredient cost ÷ (1 − Target gross margin)
Enter 68% as 0.68. This gives a price that meets the stated ingredient-margin target, not a demand forecast or a net-profit guarantee.
Worked example · Example: a seafood plate at two ingredient costs
- Complete plate cost, lower-cost scenario
- $12.00
- Complete plate cost, higher-cost scenario
- $16.00
- Price at 68% ingredient margin — $12 ÷ 0.32
- $37.50
- Price at 68% ingredient margin — $16 ÷ 0.32
- $50.00
- Difference between the two price scenarios
- $12.50 per dish
Illustrative costs include the seafood, sides and sauce after yield adjustment. They are not observed fish prices. Labor, rent, tax and other expenses are excluded from ingredient gross margin. Check your inputs in the menu price calculator.
| Approach | What the guest sees | Operator task |
|---|---|---|
| Current price on a daily insert | An exact amount before ordering | Replace the insert when the price changes |
| Current price on a digital menu | An exact amount on the menu page | Keep the page and register consistent |
| MP with the price explained at the table | A separately stated price and unit | Make confirmation part of taking the order |
Run the numbers
Menu price calculator
The guide that works it through
How to Price Market-Price (MP) Menu Items: A Rule, Price Bands and a Visible Price
Price MP dishes from today's plate cost with a written rule, compare percentage and dollar-contribution rules, set price bands, and show guests the current price.
Related terms
Menu price
The price a dish is sold at — set from plate cost, target margin, and what the dish is worth in the room.
Price creep
Small, frequent supplier price increases that individually look ignorable and collectively remove several points of margin a year.
Commodity index
A tracked measure of what a food commodity costs nationally — the benchmark that separates a market move from a vendor move.
Seasonality index
A month-by-month multiplier describing how an ingredient's price or a restaurant's volume moves through the year.