Food cost as % of menu price. The Food Cost Percentage Calculator takes ingredient cost of the dish, menu price, target food cost percentage and returns food cost percentage plus menu price at the target percentage, gross profit per dish. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Hospitality runs on thin margins and high fixed costs, so food cost, labour cost and occupancy need watching weekly rather than yearly. Small pricing and portioning changes move the bottom line quickly. Use the worked example below to check the maths against your own figures.
How the Food Cost Percentage Calculator works
Most restaurants target 28–35% food cost. A dish above the target either needs a higher price, a smaller portion or cheaper ingredients; the target-price line shows the first option.
Worked example
With the example values (ingredient cost of the dish of $4.20, menu price of $14, target food cost percentage of 30%), the food cost percentage is 30%; menu price at the target percentage $14.00, gross profit per dish $9.80. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is food cost percentage calculated?
food cost percentage = ingredient cost ÷ menu price.
Which figures do I need?
Ingredient cost of the dish, menu price, target food cost percentage. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
What benchmarks should I aim for?
Food cost around 28–35% of price, prime cost (food plus labour) under 60–65% of revenue, and steady occupancy or table turns. Track them weekly.
