How to Calculate Food Cost Percentage
What is Food Cost Percentage?
Food cost percentage is the core profitability metric for any food and beverage business. It measures what proportion of a dish’s selling price is consumed by the ingredient cost.
Formula
- Cost
- Ingredient cost per dish (Currency)
- Price
- Menu selling price (Currency)
Step-by-Step Guide
- 1Food cost % = Ingredient cost / Selling price x 100
- 2Target food cost by sector: fine dining 25-35%; casual dining 28-35%; fast food 25-30%
- 3Menu engineering: place high-margin items prominently to improve overall food cost %
Worked Examples
Frequently Asked Questions
What is Food Cost Percentage?
Food cost percentage is the core profitability metric for any food and beverage business. It measures what proportion of a dish’s selling price is consumed by the ingredient cost
How accurate is the Food Cost Percentage calculator?
The calculator uses the standard published formula for food cost percentage. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.
What units does the Food Cost Percentage calculator use?
This calculator works with inches, percentages. You can enter values in the units shown — the calculator handles all conversions internally.
What formula does the Food Cost Percentage calculator use?
The core formula is: Food cost % = Ingredient cost / Selling price x 100. Each step in the calculation is shown so you can verify the result manually.
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