Handeware
Business

Food cost

30%
Left after food
$11.20

This is arithmetic for general information, not financial advice.

Restaurant Food Cost Percentage Calculator

Food cost percentage shows how much of a menu price goes on the ingredients. Kitchens use it to check which dishes make money and which need a new price or a smaller portion.

How it works

Divide the food cost of one dish by its menu price, then multiply by 100. Many kitchens set a range they want to stay within, but the right range depends on the type of food and on rent and labor costs.

Worked example

A dish that costs $4.80 in ingredients and sells for $16.00 has a food cost of 30%, which leaves $11.20 before labor and other costs.

Questions

Does food cost include labor?

No. It covers ingredients only. Labor, rent and other costs are paid out of the rest of the price.

What about garnish and oil?

Include them. Small items add up across a busy menu, and counting them keeps the number honest.

What if ingredient prices change?

Run the numbers again with the new price. Suppliers change prices often, so checking monthly keeps the menu prices sensible.

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