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Food cost

Food Cost Percentage Calculator

Work out what share of your food sales is spent on ingredients. Enter total food cost and food sales to get your food cost percentage instantly, with the formula shown.

Food cost percentage

Formula
Food Cost % = (Total Food Cost ÷ Food Sales) × 100

What it means

Divide the cost of the food you used by the food sales it generated in the same period, then multiply by 100 to express it as a percentage. The same formula works for a single dish: divide the plate's ingredient cost by its menu price.

Good to know

  • Food cost and food sales cover the same time period.
  • Sales figures exclude sales tax.
  • The commonly cited target of 25–35% is a guideline; the right target varies by concept, menu, and market.

Ideal range

  • The result does not include labor, overhead, or other operating costs.
  • A percentage alone does not show dollar profit — a high-margin item can have a high food cost percentage and still earn more per sale.

Variables

Total Food CostCost of food used
Ingredient spend for the period: beginning inventory + purchases − ending inventory. For one dish, the total cost of its ingredients.
Food SalesFood revenue
Revenue from food for the same period (exclude alcohol and merchandise). For one dish, its menu price.

Worked examples

Real numbers through the same formula this tool uses.

  1. 1
    Restaurant scenarioExample 1

    Single dish: burger plate

    A burger costs $3.75 in ingredients and sells for $12.50. Food cost % = (3.75 ÷ 12.50) × 100 = 30.0% — status Average (30–35% band).

  2. 2
    Restaurant scenarioExample 2

    Monthly period: full restaurant

    A restaurant uses $12,400 of food in a month with $38,750 in food sales. Food cost % = (12,400 ÷ 38,750) × 100 = 32.0% — status Average (30–35% band).

How to use this calculator

Three steps from your existing numbers to a food cost percentage you can act on.

  1. Gather your numbers

    For a period: total food purchases adjusted for inventory change, and food sales for the same dates. For a dish: its ingredient cost and menu price.

  2. Enter cost and sales

    Type both figures in the same currency. The result updates instantly as you type — no submit button needed.

  3. Read the result

    Check the percentage, five-tier status (Excellent through Critical), and the recommended 25–35% range. High or Critical scores warrant a closer look at waste, portions, and pricing.

How to interpret your result

Use the five-tier status as a starting point, then judge it against your concept and market.

  • Excellent — below 25%

    Strong ingredient margins. Double-check that portions, quality, and guest expectations still line up — an unusually low number can mean under-portioning.

  • Good — 25–30%

    A healthy band for many full-service restaurants. Maintain recipe costing and weekly inventory so the number does not drift upward unnoticed.

  • Average — 30–35%

    Inside the commonly cited industry range. Fine for many concepts; watch trends more than the single snapshot.

  • High — 35–40%

    Pressure on profit. Investigate waste, portion control, supplier price changes, and menu prices that may lag ingredient costs.

  • Critical — above 40%

    Urgent attention. Reconcile inventory, tighten portion specs, renegotiate purchasing where possible, and revisit menu pricing.

Best practices

Habits that keep food cost percentage accurate and actionable.

  • Match the time period

    Always compare food used and food sales for the same dates. Mismatched periods produce a misleading percentage.

  • Use inventory-adjusted cost

    Period food cost = beginning inventory + purchases − ending inventory. Purchases alone ignore stock sitting on the shelf.

  • Separate food from beverage

    Track beverage cost percentage on its own. Alcohol and soft drinks have different cost structures and will distort food cost %.

  • Track the trend, not one day

    A single busy night can skew the number. Weekly or period averages reveal whether you are improving or drifting.

  • Keep recipe costs current

    Re-cost dishes when supplier prices move. Stale plate costs make both dish-level and period food cost % unreliable.

Frequently asked questions

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