Work out restaurant food cost percentage instantly with clear inputs, formula shown and shareable results.
Food cost percentage is ingredient cost divided by menu price; the price needed for a target percentage is simply the cost divided by that target as a decimal. Restaurants live on the gap between 28% and 35% food cost, and a single mispriced popular dish can move the whole menu's margin.
Food cost percentage
food cost % = dish food cost / menu price x 100
Target price
price = food cost / target food cost percentage
food cost % = dish food cost / menu price x 100. Food cost percentage is ingredient cost divided by menu price; the price needed for a target percentage is simply the cost divided by that target as a decimal.
Restaurants live on the gap between 28% and 35% food cost, and a single mispriced popular dish can move the whole menu's margin.
Enter food cost of the dish, menu price excluding tax, target food cost. The defaults shown are a realistic worked example — swap in your own figures to get a result you can use.