Food cost percentage is a key metric that shows how much of each menu price is consumed by the ingredients. Keeping this percentage low while maintaining quality helps restaurants stay profitable.
The calculation starts with the total cost of all ingredients used in a recipe. By dividing that cost by the number of servings, you obtain the cost per serving, which is the basis for the percentage.
Finally, the cost per serving is compared to the menu price you charge customers. Multiplying the ratio by 100 converts it into a clear percentage that can be benchmarked against industry standards.
How do I calculate food cost percentage?
Why is food cost percentage important for restaurants?
Can I use this calculator for any type of recipe?
What does a low food cost percentage indicate?
How do I improve my food cost percentage?
Is this calculator suitable for large restaurants?
Can I use this calculator for non-food items?
Results are for informational purposes only and do not constitute professional advice.
