Food cost percentage calculator

Food cost %: not ready

What food cost % means

Food cost % is the share of a menu item's sale price that goes to the ingredients on the plate. It is the plate cost (what one serving costs you to make) divided by the sale price. The lower it is, the more of each sale is left to pay for labor, rent and profit.

Worked example

A burger uses a 6 oz patty ($1.20), a bun ($0.45), cheese ($0.38), lettuce, tomato and onion ($0.32), sauce ($0.15) and fries ($0.60). The plate cost is $3.10.

It sells for $12.00, so the food cost % is $3.10 / $12.00 = 25.8%. If you want a 30% food cost on a new item with the same plate cost, price it at $3.10 / 0.30 = $10.33.

Not sure of your plate cost? Work it out ingredient by ingredient with the recipe cost calculator.

Questions

What is a good food cost percentage for a restaurant?

Many independent restaurants aim for 28% to 35% across the menu. Individual items vary: a pasta dish can run well under 20% while a steak can run over 40%. What matters is that the menu as a whole hits your target.

How do I calculate food cost percentage?

Divide the plate cost by the sale price and multiply by 100. A plate that costs $3.10 and sells for $12.00 has a food cost percentage of 25.8%.

How do I price a menu item from a target food cost percentage?

Divide the plate cost by the target as a decimal. At a 30% target, a $3.10 plate should sell for $3.10 / 0.30 = $10.33.

What goes into the plate cost?

Every ingredient on the plate, including garnish, sauce and the share lost to trim and waste. The recipe cost calculator adds these up for you.

Why does my food cost percentage keep changing?

Your sale price stays put while supplier prices move from one invoice to the next. A price rise on one ingredient raises the plate cost of every menu item that uses it.

Keep it from drifting

A food cost % is only right until your next delivery. MarginWatch can watch your supplier invoices and tell you when a price rises and which menu items it hits. To see which prices already moved, upload two invoices to the free supplier price change report.