Food Cost Percentage Calculator

Calculate food cost percentage

Food cost percentage is the share of a restaurant's food sales that goes toward the cost of the ingredients used. It is calculated by dividing the cost of food by food sales over the same period and multiplying by one hundred. If nine thousand of ingredients produce thirty thousand in food sales, the food cost percentage is thirty percent. It is one of the most important numbers in restaurant management, directly affecting profitability and guiding menu pricing.

Most restaurants aim to keep food cost percentage in the high twenties to low thirties, though the target varies by concept.

Controlling food costs

A rising food cost percentage eats into profit and can signal problems such as waste, theft, over-portioning, rising supplier prices or underpriced menu items. Tracking it regularly lets operators catch these issues early. The metric also drives menu engineering: dividing an item's ingredient cost by its target food cost percentage gives a suggested selling price.

Food cost sits alongside labor cost as one half of prime cost, the biggest controllable expense in a restaurant. Keeping both in check is essential to a healthy bottom line. All calculation happens locally in your browser.

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