Food cost percentage tells you how much of what a guest pays goes to ingredients. There are two versions of the formula: one for a single dish, and one for the whole kitchen over a period. You need both.
Food cost percentage for one dish
Food cost % = plate cost ÷ menu price × 100
The plate cost is what the ingredients in one portion cost you. The menu price is what the guest pays before tax.
Example (made-up numbers)
A burger plate costs $4.20 in ingredients and sells for $14.00. Food cost = 4.20 ÷ 14.00 × 100 = 30%.Food cost percentage for a period
For a week or a month, you look at what you actually used, not at recipes:
Food cost % = (opening inventory + purchases − closing inventory) ÷ food sales × 100
- Opening inventory: the value of food on hand at the start of the period.
- Purchases: everything you bought during the period, from your supplier invoices.
- Closing inventory: the value of food on hand at the end.
- Food sales: food revenue for the same period, without beverages if you track them separately.
Example (made-up numbers)
Opening inventory $6,000, purchases $9,500, closing inventory $5,800, food sales $32,000. Cost of food used = 6,000 + 9,500 − 5,800 = $9,700. Food cost = 9,700 ÷ 32,000 × 100 = 30.3%.Why the two numbers don't match
Recipe-based food cost is what a dish should cost. Period food cost is what the kitchen actually spent. The gap comes from waste, over-portioning, staff meals, theft, and prices that changed since you last costed your recipes.
Common mistakes
- Old prices in recipe costs. If a case went up last month, every dish that uses it costs more now.
- Forgetting fees. Fuel and delivery surcharges are part of what your food costs you.
- Mixing food and beverage. Track them separately; their targets are different.
- Skipping inventory. Without opening and closing counts, the period number is only a guess.
Keep the inputs current
The formula is simple. The hard part is knowing your current prices. Check what changed on your latest invoices before you re-cost your menu. You can compare two invoices for free with our price check, and calculate any dish with the food cost calculator.