How to calculate food cost
Food cost percentage is the share of the menu price you spend on ingredients. Add up the cost of every ingredient in one portion to get the plate cost, then divide it by the menu price and multiply by 100.
Food cost % = plate cost ÷ menu price × 100. A plate that costs $4.20 to make and sells for $14.00 has a food cost of 30%.
How to price for a target food cost
Divide the plate cost by your target food cost percentage as a decimal: $4.20 ÷ 0.30 = $14.00. Round to a price that fits your menu.
Why your food cost drifts
Your plate cost is only as current as the prices you used. When a supplier raises the price of a case, every dish that uses it gets more expensive while the menu price stays the same. Re-check the ingredients you buy most whenever your invoices change.